JULIE ANN MAYO INTERNATIONAL BUS & TRADE

46289 TF2:00-3:30 PM

ACTIVITY 10
Watch the video about Export logistics (Dairy Australia)
Discuss the most important considerations when arranging to ship dairy products to foreign
markets.
Dairy companies should consider extending their export markets when organizing
shipments because it will allow them to enhance their revenues on overseas products.
Exporting dairy processors and manufacturers must be aware that they are compromising their
brand. Dairy processors must make sure their product is well-managed throughout the supply
chain. They must know what happens to their development from when it leaves the factory
until it reaches the buyer.
Three essential logistics factors must be understood and managed by processes and
manufacturers. First, there's the issue of time to market, which is especially important for
products with a short shelf-life. Second, there's the issue of maintaining product quality, which
is especially important for fresh products with temperature considerations, and, most
importantly, ensuring full compliance with the markets they're exporting. For short-shelf-life
commodities, time to market is highly essential since it determines whether or not their
products will be commercially viable in the market they are shipping. However, the longer it
takes to get a product to market, the more items and costs you'll have in the supply chain.
When it comes to controlling time to market, exporters' clients, mainly supermarkets,
usually demand that items have at least 50% of their shelf life remaining. They may even stop
the product; there may also be issues about the length of administrative red tape involved in
border clearance; getting it over the border must be done quickly. And there's a cost associated
with getting to market rapidly.
As a result, using shipments for exports has several advantages, including the lowest
unit-cost solution for the manufacturer and the possibility of transporting bulk products with a
long shelf life. The downsides of using a sea shipment include a lead time measured in weeks
from the moment you load the boat, a three-week shipment to the port you're exporting to,
with unloading delays, and you're at the mercy of the various countries' port authorities. There
is also no control over the temperature of the items. Thus they will be exposed to the weather
if transported in a container boat.
The advantages of air freight, on the other hand, include the speed with which you may
reach any market in Asia in eight to ten hours. You'll have more control over how the product is
handled in temperature and Henle because you'll have more control over it during loading and
unloading. The expense of air freight is undoubtedly the main disadvantage. Hence it is better
for smaller cargo.
Exporters must monitor product quality because they must get the goods to their export
market consumers in the best possible condition; if it is tampered with, it will reflect adversely
on their brand. We can see that losing control of the supply chain provides the most significant
risk to product quality in a corporation. When a manufacturer relinquishes their shipment
management, they lose control of how it is handled, and any damage will reflect adversely on
their brands. Controlling product quality across the supply chain requires transparency and
traceability. If the manufacturer can find out who your export partners are and confirm that
they provide complete product traceability.
Compliance with government import and export restrictions is the third and last
consideration. Among the several types of compliance that must be examined, the exporter
must guarantee that the necessary entities are licensed and registered. Their product is
compliant in terms of product testing and marketability, as well as export documents and other
required documentation, so the manufacturer and brand owner carry the risk of non-
compliance. If you have problems with your exports, they will, at the very least, damage your
reputation, and in the worst-case scenario, the shipments will fail, and you will lose your export
license.