No matter what type of business you own, you surely realize the importance of satisfying the needs and requests of your clients since they are the ones who maintain your business on the market. You need to be incredibly considerate when it comes to choosing the right shipping and logistics company as a partner to your business because your choice is going to influence the success of your business. Your business’s reputation will be affected if the logistics company you choose to partner with does not prove to be a reliable one with superior quality services, which means that you have to do research before making a choice which you are going to regret after your clients are going to be unsatisfied with the rapidity and the professionalism that their orders are being shipped.
Check the company’s reputation
Surely the first aspect which you need to take into consideration when choosing the best logistics company to partner with is the company’s reputation. Before you make your choice, you need to investigate whether the firm has a good or bad reputation based on its partnerships with other businesses or other customers who have used the services of it. When checking the feedback of the logistics firm, you should pay attention if there is any complaint about delayed transportations, hidden costs, damaged packages because of the careless of the employees or the poor transportation conditions. If the name and the reputation of the logistics company have no negative feedback attached to it, you should consider it as a reliable partner for your business which will help you deliver all your products to your clients without any bad experience which might affect your company. Check testimonials, online reviews, and ratings to verify the satisfaction of other businesses owners who have chosen to use the company for shipping their products locally, nationally or internationally to their clients.
Security for your products
Another aspect which you need to consider before you choose a shipping and logistics company is the way that the company deals with the packages which need to reach the destinations of your clients without any damage. Make sure you choose a firm which can ensure a professional and the safest materials and products for packing your products to reach their destination of your clients without any damage.
Is the logistics company specialized for your type of products?
Depending on what products your business is producing, before you choose a shipping and logistics firm to send them to your clients, you have to make sure that the company has all the necessary tools and skills to ship your products in the right conditions. For example, if the products which need to be shipped to the clients need a subzero temperature environment or if they are produced by a fragile material such as glass or porcelain, the logistics firm you partner with should be specialized with all the special requirements which need to be respected for a safe shipment which would deliver the products to your clients in perfect shape to avoid any future claims of broken packages.
What are the shipping costs?
Surely, the costs of the shipping services are another essential aspect which you need to consider before choosing a logistics company to partner with. If you are able to find a logistics firm which can ensure professional and superior quality services while charging lower rates for delivering your products to your clients is going to bring benefits to your business. However, you need to make sure that low costs for the shipments will not cost you the satisfaction of your clients because of late deliveries, broken packages or unprofessional services. You should better consider paying a bigger amount of money for the services of the best logistics firm rather than having to deal with the situation when you have unsatisfied clients because of the delivery process who make your team deal with numerous claims and problems because this will make you lose more money and time which will affect the reputation and the growth of your business.
Geographical coverage for shipping your products
Depending on the area which you wish to extend your business to, you need to find a shipping and logistics company which can ensure the geographical coverage for the whole area. Whether you are planning to ship your products to Europe or you consider shipping from US to Mexico, you need to be incredibly considerate whether the company is able or not to ship your products to all the destinations that you need to deliver your products to your clients because using two or more companies to ensure local, national, and international shipment will be incredibly inefficient and costlier. Better to take your time and do research carefully to find a company which can ensure all your shipments.
Opportunity to keep a track of the shipment process
In order to make sure that the delivery process is done by the book and that the products reach your clients without any delay, loss or damage, you should partner with a logistics company which has all the up-to-date technology which gives you the opportunity to keep a track of how the shipment process is going. Also, your clients should be able to see all the information about when their package is going to reach the destination for a higher customer satisfaction.
Choosing the right logistics company to partner with might sound like a challenge since the reputation and the success of your business can both be negatively or positively influenced by whether you make the best choice or a bad one which you might regret after you get to deal with a low customer satisfaction. However, if you are incredibly considerate about the aspects above before you decide which shipping and logistics company you chose, you are surely going to choose the best for your business and you will get the opportunity to work with a trustworthy, efficient, and professional firm which will help your company grow on the market.
Young entrepreneurs consider the option of having a logistics business, because they are aware that shipping companies are quite successful. A logistics business is a company that stores and delivers goods from other firms. The manager of the company is the one who decides if the company will ship products nationally or internationally. It is advisable to specialise in importing and exporting goods in and out of the country, because it will bring your business more income. In order for the business to be successful, it should have various means of freight transportation. In order to succeed in this industry, you need to be patient, persistent and to have a plan. The greatest challenge shipping companies face is coordinating the inventory, warehousing and the security requirements of their partners. Logistics companies need to collaborate with other firms in order to have shipments.
Logistics companies expose themselves to great financial loss, and the best way to protect yourself from this case is to have cargo insurance. Why do you need cargo insurance? Well, first because you are running a logistics company that is shipping goods in Mexico. You expose yourself to risk daily, when you import and export goods. If this reason is not enough for you, then below are some others. Make sure to read them before deciding to skip this from your business plan.
Cargo theft cases are happening often
Studies show that the cases of cargo theft are in a great rise lately. One of the major problems people face nowadays is identity theft. Identity theft can affect your business, because people with mischievous intentions can get involved in fictitious pickups. Another case of cargo theft implies counting piracy. These cases are happening quite often when shipping companies are delivering goods internationally.
Insurance experts state that they have seen countless cases of cargoes being stolen from the drivers on the road to Mexico. Cargo theft is one of the main factors that should make you consider the option of getting insurance for all your shipments.
Containers are lost at sea regularly
Shipping companies state that every year they experience cases of containers lost at sea. Nowadays, logistics companies have to consider the option to ship at sea if they want to deliver to Mexico. If you want to collaborate with companies that need to transport a huge number of goods, and they have to ship them to Mexico, then having your own megaships can be highly profitable for you. But this action comes with great risks. Statistics show that around 800 containers are lost at sea every year. You can count on your luck, or you can have an insurance. Do not put your business at risk, because this type of incident can be catastrophic even for a well-established business. If you are running a start-up, you have two options, you either collaborate with companies that do not need overseas shipping, or you get insurance for all your shipments.
Cargoes get damaged
It is something common a cargo to get damaged during transportation. These situations are even more common than the ones when shipments are lost at sea, or they are stolen. Statistics say that there are numerous factors why shipments get damaged or deteriorated. In 30% of the cases the damage a cargo experiences is physical, in 15% of the situations the temperatures are the ones that create damage. Also, there are situations when containers are lost overboard, or they get infested. These situations are quite often and there are so many factors that cause them, you should not risk the success of your firm. One way to prevent these situations is to collaborate only with reliable warehouses. When you run a logistics firm that is shipping internationally, you will have to collaborate with warehouse providers worldwide. Make sure you check the facilities and safety options they offer, when you choose the Mexico warehousing option.
Companies require you to have an insurance when transporting their goods
Your partners will definitely want to know that you have insurance for the shipments you make. When choosing a logistics company to import or export goods from Mexico for them, the first factor they check is insurance. Having an insurance guarantees them that they can recover their money in case of an incident. An insurance does not protect only your business, but also theirs. When you will sign contracts with partners make sure that you read carefully all their stipulations, because you do not want to get involved in an unfavourable situation.
The cases of non-compliance with the terms of the contracts you sign are catastrophic for your business. You can experience great financial loss and even legal issues.
Catastrophic events can happen daily
When shipping internationally, cargoes cross the territory of multiple countries. This means that they are exposed to numerous weather conditions, and as you already know, the weather is unpredictable. Other catastrophic events can include, explosions, shipwrecks and pirate attacks. Catastrophic events caused the loss of around 3000 containers last year. One famous case is the one from the Tianjin explosions in China. Pirates have taken all the containers.
You decide what the insurance policy terms are
When you choose an insurance policy it is important for you to decide the terms, because it is essential they to be favourable for you. There are numerous options when it comes to insurance policies, because providers are aware that different logistics companies have different requirements. Make sure that you are satisfied with the limits, terms and valuation established by your provider. Do not leave the insurance up to your partners, because they will choose one that is favourable for them. In this situation, you are at the risk of not being properly protected, and this can be dangerous for your business. In case you collaborate with Mexican businesses, it is advisable the insurance to be translated, because the terms can differ and they need to know exactly what cases are covered.
Keep in mind that your partners count on you to ship their good at the destination, so in case an incident happens, you can use the insurance to cover the losses.
Your company, like many others, may believe that it doesn’t ship enough items or receive enough orders
to begin shipping internationally. However, do you often consider looking into shipping solutions, just in
case? Is such planning and preparation worth your company’s time and money? Estafeta believes it’s
certainly worth it, especially if you’re considering beginning your international journey with shipments
Proximity Makes Entry to International Markets Easier
If your business is just warming up to the idea of shipping its products outside of the U.S., the proximity
of Mexico may make the transition a bit easier. EstafetaUSA specializes in the shipping across the U.S.
border. In fact, we are the best resource available for the transition. Shipping internationally, especially
consistently, is a laborious undertaking for businesses, and the possibility of ground shipping to
Mexico makes a large task a bit more manageable.
Returns from Untapped Markets
When your business reaches its goal in the US, you can’t just turn in for the day. Expanding to new
markets is the next step. However, what comes before diving in? The predecessor to any great business
success is research. Knowing who your audience is in the new market, where your business base is
within the market, and what niche you wish to pursue is key.
While larger businesses may have more abundant resources to pull from for this research, even those
with smaller resource pools can take the time to ensure they are fully prepared before entering a
market. The most simplistic step of this research is to gather what customers you have requesting your
services now. Whether that be on Twitter, in email, or across your website, use those conversations to
encourage word-of-mouth among their community.
By beginning with this audience, you can see where your current customer base is and begin
conversations in nearby areas to feed that growth.
Why not being bound to air freight will save you money and time
So your company is going international, but how? Companies based in the United States, if not immediately, respond to an international market requesting their product, tend to start within the continent, and serving other North American countries, especially Mexico. They face the option of how they will transport their goods to the country, and what they want their distribution to look like. This situation becomes even more unique when shipping from the USA to Mexico, as some carriers, like EstafetaUSA, can accommodate international shipments across the border via freight truck. Thus opening up a slew of possibilities and decisions to be made, EstafetaUSA offers international air and ground freight, making our team specifically equipped to serve businesses of all sizes and needs.
Without exception, it’s every company’s obligation to understand the cost and potential returns of going international. When considering shipping on a solely cost basis, ground shipping will likely win out for smaller shipments. This option saves money on gas, customs clearance, and staff needed. Additionally, the equipment is a lower starting cost and consists of lower maintenance. All of these savings get passed directly on to you and make a noticeable difference in your bottom line. Air freight focuses on providing savings in volume over time. If your products are sent in large amounts but not common intervals your savings will likely be best manifested by the use of one plane rather than multiple trucks.
The volume and frequency of shipping will contribute greatly to an appropriate price quote, but also to the overall method used. Ground shipping is best utilized for companies that are in need of Less-than-Truckload shipments or have items that will fit into a freight truck. If the product is being shipping in large palletized loads that will need to arrive quickly, air freight may be the most effective answer. Another variable is frequency of shipping, a one time load will arrive faster via air freight, while regular shipments will be more regulated via ground shipping due to fewer and shorter weather delays, equipment delays, and other outside factors.
If your bottom line budget is clear and both options are viable, then likely you’ve moved on to considering what requires the least input from your company with the maximum returns. Getting your products to the point of shipping is the first adjustment needed if you’ve been warehousing in-house previously and now may need to transport them first to a mid-way point to be collected by your logistics company. While air freight will require the products to be taken to the location of the plane, this can be worked around with the correct shipping partner to require minimal time and cost. Ground shipping offers the convenience of door-to-door service for both your business and it’s customers. This requires no additional waypoints for your products but can take longer for the full transport to take place.
Multi-level Marketing, or direct sales, has become much more than something your friend posted on Facebook. Multi-level marketing has increasingly proven to be a sustainable business model, one that more and more new businesses are turning to in an effort to engage their consumer audience. By utilizing brand advocates and encouraging representatives to spread their story, many MLM’s have sprouted, grown, and are ready to take root in new areas across the globe. But when is the right time for your MLM to cross the border? We spoke with our Direct Sales experts and got the latest news and tips on when to transition out of ‘US Only’ status.
Making the Decision
If you’re a sales representative who is fluent in Spanish and obtains permission from your company to expand to Mexico, you’re ready to go international. Likely, something that drew you towards direct sales was the openness to be your own boss, and this is a chance to make a business decision that helps to define that. No official title is required to expand your sales base across the border, just drive and knowledge. As we commonly share, new markets hold returns, so it may be time for you to own your management position within the company and expand your sales base (and income level).
Know the Basics
You have the decision making power, but do you have the basics down for logistics and shipping across the border? The answer is simple, you don’t have to. Our sales experts know the ins and outs of customs clearance, export laws, and MLM needs. We work with companies of all kinds and have the knowledge you need to cross the border to Mexico without hesitation. But if you’re a self-starter (like most MLM reps) we also share Inventory 101, warehousing tips, and import tax knowledge with you on a regular basis, because knowing what it all means it step one of seeing the results. We know that you’re always learning and are here to help you along the way.
Choose the right partners
We are members of the Direct Sales Association, which means we know who you know, and get the latest news too. As a supplier in the DSA, Estafeta provides assistance to MLM companies regarding the importation, exportation, fulfillment, and delivery of goods and services everywhere in Mexico (if none of that made sense, check out our quick reference dictionary). It also means that we know the answers to problems you may not have faced yet, and we are always willing to share our lessons learned. Our relationship with DSA benefits so many, and not just when we visit the Direct Sales Association Trade Show every year. We have the experience, relationships, and knowledge to help your MLM find new customers, increase returns, and expand to Mexico.
Talk to one of our shipping experts and see how much it really cost to export to Mexico, we’re guessing it’s less than you think.