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From Cost Management to Compliance: The Answers to Your Logistics Concerns

Logistics is key to business health, but also source of many concerns. Today, we tackle the most common apprehensions companies raise regarding their logistics operations. From cost management to compliance, including inventory management, find out how to not only ensure smooth logistics operations, yet also make them part of successful business strategies! 

According to a report issued by Fortune Magazine, 94% of the Fortune 1000 companies faced Covid-19 induced supply chain disruptions. This figure and, more generally, the pandemic, highlighted how central to a company’s health its logistics operations are.

 

Does your company rely on domestic or international shipping?

Understanding where the disruptions come from is thus essential to conducting smooth operations, and the first step toward finding the right strategies to ensure one’s business runs smoothly.

Today, ASI Logistics dives into the main concerns businesses have in regard to supply chain and logistics operations, and the best practices to ensure their logistics operations not only run smoothly, yet also elevate their efficiency and even integrate into successful strategies.

Cost Managementt: Spending Where It Matters

Businesses around the world are concerned about how to best optimize their costs and correctly channel their spendings and investments into the functions that create the most value. Logistics operations are no exception to this logic, and finding the right solution that meets your business needs and priorities is essential.

 

💡THE ANSWER💡

Your logistics partner should thus, first and foremost, be an attentive ear who takes the time to understand your business and its specificities and offers informed solutions.

At ASI Logistics, we do not believe in the “one-size-fits-all” rhetoric. Our customer-centric ethos is engrained in the designing of built-to-suit, customized logistics solutions. Whether your project calls for velocity, cost-optimization, multi-modal transportation, route optimization, or out-of-the-box solution, we treat your demand with diligence.

Thanks to our extensive portfolio of services, our teams of experts present in 8 key locations, our trusted partners, and our worldwide network, you are sure to be provided with the perfect solution to fit your needs.

Supply Chain Disruptions: Leveraging Flexibility in Uncertain Times

Disruptions in the supply chain, such as natural disasters, geopolitical events, or transportation disruptions, can have a significant impact on a company’s logistics operations.

💡THE ANSWER💡

At ASI Logistics, we are committed to being the most up-to-date and responsive in case of such disruptions. Our a solution to any disprution.

Inventory Management: Meeting Customers’ Demands While Minimizing Costs

Inventory management is a critical aspect of logistics operations. Companies need to balance having enough inventory on hand to meet customer demand while minimizing the costs associated with carrying excess inventory. The perfect equilibrium of this tricky balance lies in both your business model and the overall business environment you evolve in.

Relying on a flexible and responsive logistics and freight forwarding partner nevertheless remains a staple of successfully optimizing your inventory management to the needs and priorities of the time.

💡THE ANSWER💡

ASI Logistics offers scalable and connected warehousing (bonded and non-bonded) and distributions services and optimizes their solutions to fit your needs, while our teams are dedicated to ensuring your goods arrive on time and in perfect conditions so they can meet your needs and your clients when and where they’re needed!

By working with us, you ensure that the priorities of your partner are aligned with yours, and can focus on matters the most: satisfy your customers.

Compliance & Regulations: Ensuring Smooth Import & Export

Companies need to comply with a variety of regulations and requirements related to logistics operations, including safety regulations, customs requirements, and environmental regulations. Failure to comply with these regulations can result in significant fines and other penalties, in short, with great disruptions.

 

💡THE ANSWER💡

Being up-to-date and informed about these regulations can be challenging, especially for businesses that lie on the smaller side.

With 15 years of expertise, readily informed teams, and an ethos of open communication and clarity, ASI Logistics is dedicated to ensuring your shipments go through registration and customs smoothly.

Logistics and freight forwarding efficiency are essential to a business’ success. That is the reason why we developed comprehensive sets of services that cover all the needs that might arise over the course of your company’s journey!

For the past 15 years, ASI Logistics has built a solid presence and expertise in the Asian region. With offices in 6 strategic locations, well-established partnerships, and worldwide network, we enable our customers to benefit from worldwide, flexible logistics and freight forwarding services, tailored to fit their needs.

 

Our goal

Provide businesses with seamless and optimized logistics and freight forwarding operations from, to, and within Asia.

 

ASI Logistics’ core values

👉Customer Centricity👈

👉Sustainability👈

👉People Development👈

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Is Resorting to Air Freight the Optimal Solution for Your Business?

Is air freight the most optimal mode of transportation for your operations? Although the fastest way of transporting goods, resorting to air freight for your logistics operations also has cons that all businesses involved in international trade should weigh before making their decision. In today's article, we summarize everything you need to know about air freight to make the most fitted decision regarding your logistics and freight forwarding operations.

In today's fast-paced economy, efficiency and responsiveness are determinant factors to a business's success. Air freight meets both these criteria, but is it the right transportation for your project and goods?

Today, ASI Logistics explores the situations in which air freight is indeed the recommended solution.

When is air freight the optimal choice?

 

  • Time-sensitive goods: air freight is mostly used for its velocity and the reliability of its ETA by businesses whose project requires tight time management.
    Indeed, this transportation method is not affected by road and rail conditions, and weather conditions cause shorter delays than they do to sea freight.
    Several situations might call for resorting to air freight's 560mph, among which:

    • Having to complete time-sensitive or urgent shipments, i.e., perishable goods, medical supplies, high-value goods, or time-critical components. In such cases, air freight allows transporting these goods across long distances in a matter of hours or days, depending on the origin and destination.
    • Relying on just-in-time inventory management, i.e., shipping goods as they are needed instead of maintaining large inventories. Air freight then allows for reducing inventory costs and streamlining supply chain operations as goods can be flown as needed to meet production or customers' demand.
    • Dealing with seasonal or promotional goods, e.g., seasonal garment collections or holiday merchandise. When dealing with tight or lean production and delivery, air freight thus appears as the best fit to meet customers' peak demand periods.
  • High-value shipments: for high-value goods, such as electronics, luxury items, or precious metals, air freight may be recommended due to its comparatively higher security measures and lower transit times.
  • Small quantities: air freight is best fitted to accommodate smaller volumes due to its comparatively scarcer available space and higher rates.
  • Easily reaching the entire world: when shipping internationally or across long distances, air freight can be comparatively more efficient, as it allows for faster delivery times. It is also a particularly good choice when trying to reach remote or difficultly accessible locations with limited transportation options.

 

The pros and cons of using air freight

When air freight becomes a strategy

 

As highlighted by the World Bank, resorting to air freight can be leveraged by companies and integrated to their business strategy and used to leverage their operations.

  1. "The use of air freight can create competitive advantages" for producers who can then agree on shorter order times and for manufacturers who can then use the velocity of air freight to replenish inventories as the need arises.
  2. "Air freight can be used as part of a strategy of diversification," allowing businesses to introduce products with shorter shelf lives or provide reliable delivery of smaller volumes in a new market before switching to cheaper modes of transportation that can accommodate larger volumes once the market is established.

 

Searching for a fast and reliable way to transport goods across the world?

As a leader in logistics and freight forwarding, ASI Logistics provides customized, high-quality air freight solutions crafted to fit your needs. Thanks to our comprehensive range of air, sea, and land freight services, we provide you with the right solution for your cargo.

Partnering with a reliable logistics provider is essential to any company's success. By working with ASI Logistics, you ensure your goods arrive at their destination safely and on time, your logistics operations are optimized to your needs, and your contact persons' priorities are aligned with yours.

We understand that your business relies on timely and cost-effective logistics solutions that don't sacrifice quality. Prioritizing our clients’ needs, embracing the uniqueness of every request, and building long-lasting business relationships are at the core of our ethos.

Thanks to our wide range of services, 15 years of expertise, and outside-of-the-box thinking, we strive to offer customized solutions that meet our customers’ specific needs and demands.

Our goal

Provide businesses with seamless and optimized logistics and freight forwarding operations from, to, and within Asia.

 

ASI Logistics' core values

👉Customer Centricity👈

👉Sustainability👈

👉People Development👈

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International Trade Tips: Navigating Asia’s booming e-commerce logistics landscape

E-commerce revolutionized the Asian logistics industry. How then to master your operations in the region? In today's article, ASI Logistics breaks down everything you need to know and guides you through optimizing your logistics operations in Asia.

The rise of E-commerce has transformed how both B2C and B2B companies operate and disrupted traditional business models.

For businesses involved in E-commerce, logistics, and supply chain are the most strategic aspects of their operations. In today's article, we explore the impact of e-commerce on your logistics operations in Asia and lay out the best practices for managing your logistics operations in the region.

Asia: the region where e-commerce spreads its wings the widest

Following the Covid-19 pandemic, consumers' and businesses' habit of relying on e-commerce to acquire goods has become more engrained in daily practices.

Given the role played by Asia in global manufacturing, it is no wonder that this rise would significantly impact this region's logistics sector.

According to "Asia: The highway of value for global logistics," published by McKinsey, Asia is set to account for 57% of the global e-commerce logistics market growth between 2020 and 2025. They note that "this may make Asia the single-most-important region for global trade and logistics activities going forward."

Furthermore, if e-commerce rises worldwide, it does so even more in Asia. While China already ranks as the most penetrated e-commerce market globally, with the digital economy accounting for more than 38% of its GDP in 2020, other Asian countries are not far behind. In particular, South-East Asia is experiencing a surge in e-commerce, boosted by massive growth in the digital payments sector, the rise of social commerce (the usage of social media and other online media to sell or buy products or services), and the maturing of e-commerce live streaming.

What to pay attention to if your e-commerce business operates in Asia

The rise of E-commerce has led to an increase in demand for transportation services and adapted warehousing facilities in Asia.

To answer this demand, resorting to multiple transportation modes has become vital to optimize operations and reduce costs. For example, a company might resort to a combination of air, sea, and land transportation to move goods from one location to another instead of relying on only one mode of transportation.

In addition, E-commerce has led to an increase in demand for adapted warehousing space. Indeed, the latter needs to answer the prerequisites specific to customers' e-commerce activity and region of operation. Depending on your operations, you might want to ensure you can rely on strategically located facilities or that they offer warehouse management and added value serv

It is important to note that the Asian logistics infrastructure is not uniformly developed across the region. On the one hand, East Asian countries such as China can rely on robust infrastructure and networks and established providers to support the rise of e-commerce. On the other hand, several ASEAN countries' infrastructure and logistics services are yet to mature, despite rapidly developing and attracting investors

You might thus want to adopt agile supply chain practices to respond quickly to customer demand and market conditions.

Hence, we can measure the importance for businesses whose manufacturing operations or retail market happen in the region to rely on trusted logistics partners with solid expertise in freight forwarding from, to, and within Asia, a reliable network, and adapted facilities.

For the past 15 years, ASI Logistics has built a solid presence and expertise in the Asian region. With offices in 6 strategic locations, well-established partnerships, and worldwide network, we enable our customers to benefit from worldwide, flexible logistics and freight forwarding services, tailored to fit their needs.

Our goal

Provide businesses with seamless and optimized logistics and freight forwarding operations from, to, and within Asia.

 

ASI Logistics' core values

👉Customer Centricity👈

👉Sustainability👈

👉People Development👈

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Incoterms guide #2: What is Ex Works (EXW)?

Who bears which costs and responsibilities under Ex Works? What are the implications of this Incoterm, as well as the pros and cons of choosing it, or the best situations to do so?

Still unsure, or eager to refresh your memory? We answer it all in today's guide!

If your business is involved in international trade and your operations include importing or exporting goods, being aware of the intricacies and implications of your transactions and trade deals is essential. Hence, the importance of having a sound understanding of the various Incoterms that state who is responsible for the transportation and delivery of goods.

After covering FOB in our last Incoterms Guide, today, we tackle another frequently used Incoterm: Ex Works, or EXW.

Which costs and responsibilities are born by the seller and the buyer under this Incoterm, and what are the other implications of this trade agreement? Read this guide!

What is Ex Works?

Under EXW, the seller is typically only responsible for making the goods available at a designated location (typically, their factory or warehouse). They thus only have to ensure the goods are prepared, packaged, and ready to be loaded at the said location on the agreed date.

In turn, the buyer assumes all the costs and responsibilities of transporting the goods to their destination.

Under standard EXW, the buyer is in charge and bearing the risks of loading the goods at their pick-up location, transportation, arranging export/import formalities, and customs clearance, if any.

What about in pratice? A real life example of Ex Works

What does Ex Works imply? The pros and cons

1. Ex Works advantages the seller

Transportation costs and associated risks are borne by the buyer. Hence, this Incoterm favors the seller since they only have to package and make them available at a designated location. In contrast, the buyer has to bear all the costs, responsibilities, and risks associated with the transportation of the goods.

 

2. The buyer is responsible for exporting the goods

In other words, they have to obtain or have in their possession an export license to ship the goods.

 

3. The buyer is responsible for customs clearance in the origin country

This means that if the seller's information is incorrect, the subsequent additional costs are the buyer's responsibility.

4. EXW is one of the cheapest Incoterms for the buyer (even though one of the most burdensome)

EXW can be one of the least expensive options first because buyers can control their costs and select and arrange the most cost-effective transportation option. This includes having the possibility to consolidate purchases from several sellers, i.e., optimizing shipping costs through needing fewer containers. Second, EXW is one of the cheapest options when purchasing goods because the seller bears no costs or obligations and does not reflect them in the pricing.

 

5. The buyer works with trusted representatives and logistics providers

Trusted representatives can make a huge difference in ensuring the goods are made available in the agreed terms by the seller and effectively shipped from the country of origin. Similarly, partnering with a reliable logistics provider is essential for the buyer when they bear all the costs and risks of the associated steps.

At ASI Logistics, our goal is to make navigating your logistics operations easy! Customer centricity is part of our DNA, and so is ensuring you access the most adapted logistic solutions to fit your needs.

We provide you with all the necessary resources, information, guidance, services, and operational reliability to ensure that you keep your peace of mind under Ex Work or any other Incoterm!

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Incoterms guide #1: What is FOB?

Incoterms act as the foundation pillars of international trade: they codify it while ensuring the legal responsibility of the parties involved is clearly stated. As your logistics & freight forwarding partner, ASI Logistics designed a handy Incoterms guide to help you navigate your international business operations. Today, we tackle one of the most commonly used Incoterm: FOB.

What are Incoterms?

Incoterms, or International Commercial Terms, are a series of internationally recognized trade terms that define the responsibilities of buyers and sellers in international transactions.

They are published by the International Chamber of Commerce (ICC) and specify the responsibilities of both parties in the delivery of goods, including tasks such as transportation, insurance, and the transfer of risks. Incoterms are widely used in international trade and are a key part of any international sales contract.

Why does being familiar with incoterms matter?

Incoterms help to clarify the responsibilities and obligations of both the buyer and the seller in international trade transactions. Using them ensures that both parties clearly understand who is responsible for the goods or tasks, such as arranging transportation, providing insurance, or paying customs or import duties. This can help to avoid misunderstandings and disputes between the buyer and seller.

In addition, being familiar with the implications of a given incoterm used in a contract ensures that the buyer and seller more accurately estimate the transaction cost and make informed decisions about their purchasing and selling activities. For example, if the seller is responsible for arranging transportation, this will impact the overall cost of the goods.

What is FOB?

FOB (Free on Board) is likely to be the Incoterm you will most often come across in international trade.

If two parties agree on FOB terms, it means the goods are the supplier's responsibility until loaded on the shipping vessel, and this responsibility transfers to the buyer thereafter.

The implications of FOB can be further clarified by the terms FOB Origin and FOB Destination.

  • FOB Origin (or shipping point): all the risks transfer to the buyer once the goods are shipped by the seller, i.e., once they leave the shipping point and begin their transport to the customer.
  • FOB Destination: the risk of loss transfers to the buyer when the goods reach them, i.e., the seller bears this responsibility until the buyer receives the goods.

In addition, being familiar with the implications of a given incoterm used in a contract ensures that the buyer and seller more accurately estimate the transaction cost and make informed decisions about their purchasing and selling activities. For example, if the seller is responsible for arranging transportation, this will impact the overall cost of the goods.

At ASI Logistics, customer centricity is part of our DNA. Our priority is to ensure our customers' peace of mind and that they access all the necessary information to make informed decisions regarding their international operations!