LOGISTICS AND SUPPLY CHAIN’S COST, A KEY PIECE FOR START-UPS

By Monday November 9th, 2020Sin categorizar

If you decided to start your very own business, you must know that one of the fundamental pieces of the process of successful start-ups is logistics. The supply chain allows consumers to have products at their disposition with very competitive costs, at the right time and place. 

Doubts raises at the moment of commercializing a product, some of them are: Can I import products to my name or do I need a legitimate business? Which is the best mode of transportation? What is the total cost of the product once is bought? Which is the process to follow once the product has been bought? How much time does the merchandise will take to arrive?  Which is the best incoterm to buy my products? All of these questions and doubts are part of the Logistics and Supply Chain process in which GENERAL CARGO will give you the best advices and be your most helpful partner. Some of the factors to have in consideration when commercializing a product are:

Transit Time of the Product: It will depend on the product’s origin country. Time will be determined by the approximate time that the product transits until it reaches its final destination. Sometimes, we see products at a really low cost and at the time of purchasing the product, we realize that it can take up to 60 days to arrive to its final destination. This is a disadvantage for the commercialization of the product. 

Transport cost: It is really important for all parties to estimate de transport cost before purchasing the products. Some of these costs include: Insurance and customs. Doing so, we can estimate the competitive advantage that the product may or may not have in the local market. 

If it’s about time-related-matters, we can use airway. Instead of moving inside containers, on top of ships, we can fly in the products. It has a higher cost, but it still remains at number one position in the list of “fastest transports”. 

Peak season for our shipments: During peak season, demand for space in ships are higher, and there for the transportation costs increase as well. During the low season, costs are much more accessible that allows us to have a better competitive advantage of the products in the local market. 

Import requirements and regulations: We must know that there are products that require a specific document, or special custom process for the correct admission of the product into the country. It is important to ask for advice, if any doubt, before purchasing the products. 

Some examples are: Products made with wood, dangerous goods, food, medicine, etc…

Tax Advantages: Panama counts with many commercial agreements with different countries around the world. Some of those agreement include Free Trade Agreements. Some of the countries/regions that can give this tax advantage for some of the products on the import tariff are: United States, Mexico, European Union, Israel, Trinidad & Tobago, Central America, South America, and many more. 

We acknowledge that Supply Chain’s processes are fundamental and determinant for your business. That is why General Cargo will help you through every step. We can offer and help you with customs processes to avoid delays, and missed opportunities. 

Carmen Vidal

Author Carmen Vidal

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