Reverse Logistics: The Way Forward?

Reverse Logistics: The Way Forward?

Reverse Logistics Is Arguably The Current Buzz Word Of The Logistics Industry. As The Battle To Remain Profitable In A Challenging Economic Climate Rages On, Supply Chain Experts Are Looking At Reverse Logistics Strategies To Reduce Waste, Improve Customer Satisfaction And Reap The Financial Rewards

What Is It?

Reverse logistics can be defined as “the process of planning, implementing and controlling backward flows of raw materials, in-process inventory, packaging and finished goods, from a manufacturing, distribution or use point, to a point of recovery or point of proper disposal” (source: Reverse Logistics Executive Council). Remanufacturing and refurbishing activities can also be included in this field, as well as managing sales of surplus/ returned equipment and machines from the hardware leasing business. With typical logistics practices bringing the product towards the customer, the nature of reverse logistics is aptly named as the product is moved back through the supply chain to gain maximum value.

Why Are People Doing It?

Customer Satisfaction

Many companies focus on reverse logistics to enhance customer experience, protecting their brand and retaining customer loyalty. It is becoming increasingly important to keep customers satisfied with products and services not only before and during, but also after the initial delivery. There is relevance also within the projects sector however whereby industrial suppliers provide their goods to a customer, ship the goods back after completion of the project, and then re-use them for another project for another customer. It is worth noting here that this also motivates more cross trade in the project sector.

Corporate Responsibility

The increasing demand for businesses to consider the environmental impact of their operations has been another motivation for reverse logistics. As consumers, we are becoming more concerned with corporate energy consumption, emissions and supply chain carbon footprint. Rising public interest in ‘corporate responsibility’ saw M&S implement Plan A in 2007 pledging to ‘help protect the planet by sourcing responsibly, reducing waste and helping communities’.

Revenue

Many companies overlook reverse logistics due to the perceived cost of managing the process, however, some statistics suggest that reverse logistics costs can be less than 4% of the total supply chain. Refurbishing, repackaging and reselling parts are often untapped revenue opportunities, avoiding excess inventory carrying costs and helping companies to reduce costs.

Going Green

The environmental benefits of recycling or refurbishing products are obvious. For many supply chain managers, however, the beauty of reverse logistics is that you can not only gain maximum value and increased revenue from every product, but also add some ‘sustainable’ and ‘environmental’ kudos to your corporate image. Win-win?

How Does Tuscor Lloyds Do It?

For Tuscor Lloyds reverse logistics has been an increasing part of the service offered by our projects team. Many of our clients are utilising reverse logistics processes in their supply chain, focusing on the benefits of aftermarket care and complete life cycle support.

Specifically for our oil and gas clients, we offer quotations for delivering the same piece of equipment to different destinations around the globe. We have also been involved in numerous return shipments, at times even transporting cargo to the client and bringing back materials/equipment in the same delivery. This requires Tuscor Lloyds specialist import/ export knowledge in managing hidden costs in the reverse supply chain.

Do you need to discuss reverse logistics solutions for your business? Contact our team today to get your cargo moving:

Email: projects@tuscorlloyds.com 

Telephone: +44 (0) 161 868 6000

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[INFOGRAPHIC] Mexico Trade with the European Union

[INFOGRAPHIC] Mexico Trade with the European Union

The European Union is Mexico’s second largest export market after the USA, in 2013 Mexico exported approximately €17,517 million worth of cargo to the EU. The EU is also the third largest source of imports after the United States and China, in 2013 Mexico imported approximately €27,435 million worth of cargo from the EU. Mexico is a net importer of goods from the European Union.

Mexican-EU-Trade-Infographic

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Understanding Global Sourcing for UK Companies

Understanding Global Sourcing for UK Companies

Global Sourcing Is A Complex Process Which Refers To The Sourcing Of Materials Or Products From The Producer To The Buyer

Global sourcing covers packaging, transporting, insurance, inspection and customs clearance. Importing goods from foreign markets can be difficult because of potential issues with cultural barriers, unexpected delays, communication problems and the red tape required for importing.

Understanding Import Laws

When importing goods you need to understand the laws within the country you are importing from and the country you are importing to. Many countries restrict or prohibit certain types of goods from being exported or imported from or to their country.

The UK bans the import of the following products:

  • Illicit drugs
  • Flick and gravity knives
  • Self-defence sprays (e.g. pepper spray)
  • Stun guns
  • Indecent and obscene material
  • Counterfeit, pirated and patent-infringing goods
The following items are also banned but in certain cases can be imported to the UK with relevant licences:

  • Firearms, explosives and ammunition
  • Imitation firearms (realistic)
  • Offensive weapons such as swords exceeding 50cm in length
  • Live animals
  • Endangered animals or plants
  • Certain fur skins and fur skin products
  • Certain radio transmitters
  • Rough diamonds

Understanding Product Costs

Many first time importers find a product they like at a great price and without much thought, jump in with an order; this is a big mistake when other cost factors have not been considered. It is important to remember that on top of the actual product cost you will have to pay for transportation, tariffs (see below), import VAT, trade restrictions, cargo insurance and packaging for transportation. By working with a trusted shipping agent you can get reasonable price for all transportation costs and safe delivery of your goods.

Understanding Import Tariffs

Tariffs are UK government taxes on the value of the imported goods (also known as import duty). These charges are calculated as a percentage of the customs value of the goods, the customs value is made up of: the price paid for the goods, insurance cost and shipping costs. These charges are collected when the shipment clears customs.

Note: Import Tariffs are not charged for non-commercial goods imported from the E.U.

 

Understanding Licences, Permits and Documentation

When importing goods to the UK you should check if you need an import licence for your shipment, some goods including: firearms, food and textiles require an import licence and goods imported from certain countries will also require a licence.

If your goods are being imported from within the E.U. then minimal paperwork is required, although it is good practice to ask the supplier to include a copy of the invoice with the shipment.

If you are importing from outside of the E.U. then you generally need an invoice and a copy of the shipping documentation such as the Bill of Lading, for customs clearance. If your goods are worth more than £6,500 then it is recommended that you include a valuation statement with the shipment.

Goods from some countries can be imported with a reduced or zero rate of import duty, in order to apply for this you must include documentation proving the origin and showing that the goods were manufactured or produced in the preference country and in accordance with preferential rules of origin.

A C88 form (or Single Administrative Document – SAD) is used to declare imports to customs, this form must detail the goods using a ‘commodity code’ which determines what the duty import rate will be.

As an experienced international freight forwarder Tuscor Lloyds can handle all required import documentation and help with a swift and hassle free customs clearance.

Understanding Import Timing

When importing goods from abroad you should try and time your orders and find a middle ground between shipping too early (could incur extra costs due to storage) and shipping too late (risk that product won’t arrive in time for your needs). Your source should be able to give you an accurate time scale for production and shipping, this should be used along with possible delay considerations to determine suitable order dates to keep inventory at a healthy level and protect against possible delays or stock issues.

Understanding Shipment Processing

By working with Tuscor Lloyds you can ensure that there is someone ready to take control of the shipment, obtain licences, handle documentation, facilitate communication between you and the country of product origin and calculate duties, taxes and fees. With Tuscor Lloyds acting as your transportation agent and customs broker you can be confident in the safe and timely transportation of your goods whilst removing the headache of international logistics and focusing your time on the rest your business.

Please contact Tuscor Lloyds for a quote or more information on importing goods to the UK: +44 (0) 161 868 6000 / shipping@tuscorlloyds.com – our professional staff can help you with every aspect of importing to the UK.

For more news and industry insights from Tuscor Lloyds, click here. 

Personalised Logistics Services For All Types Of Industries

Personalised Logistics Services For All Types Of Industries

Over the course of Tuscor Lloyds’ history, there have been many sectors that have shaped our shipments. Season-after-season, we have focused our efforts in diverse business fields, gradually becoming specialists in a larger number of industries thereby achieving an increasingly heterogeneous portfolio of clients

 

 

Now that we are in the culmination of 2013, we take a look back pleasantly acknowledging the wide range of cargo we have worked with during the year, highlighting several industries in terms of quantity of shipments, for example in exports, the food industry which, from different parts of Spain, has made it possible for our olives, oil, wine, chocolate and citrus to have a greater presence in countries like Canada, USA, Mexico and the Dominican Republic, amongst others. The furniture, chemical and textile industries are certainly other areas that have prevailed this year, not forgetting of course the raw materials and ceramic industries.

Regarding imports, our main business areas in 2013 have been automotive and medical devices, followed closely by the editorial and machinery industries, which have allow us to double the volume of our shipments compared with 2012.

After this review of the past, we look forward again to the future, where we will keep working to gain the confidence and loyalty of our clients though hard word, perseverance and passion for our continuous improvement.

For more news and industry insights from Tuscor Lloyds, click here.  

Spanish Exports And Economic Recovery

Spanish Exports And Economic Recovery

In 2013, Spain Increased Its Volume Of Exports, Thus Reducing The Deficit In Its Commercial Trade Balance

 

Most exports are semi-manufactured and manufactured goods (50% of the volume of exports): ships, cars, pharmaceuticals and electronic and chemical components.

Spain is the third-largest exporter of wine, fruits, and vegetables worldwide, with 70% of these exports going to the European Economic Community. Although the majority of trade out of Spain deals with the EU, increasing trade with Africa, Asia and the exciting emerging markets across Latin America should also not be ignored.

The communities that contribute the most to this balance of exports include Barcelona, Madrid, Valencia, and Vizcaya.

The number of companies that are opening new markets and are driving the economy of the country are continuously increasing.

Despite the delicate economic situation of the country, everything seems to indicate that exports could be a key element in the economic recovery of the country.

For more Spain economic data, click here. 

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Tuscor Lloyds Leads Sustainable Logistics With Carbon Footprint Certification

Tuscor Lloyds Leads Sustainable Logistics With Carbon Footprint Certification

Sustainable Logistics

 

Tuscor Lloyds Spain has recently received the certification given by AENOR which verifies its carbon footprint, a pioneer project in the logistics industry in Spain placing the Freight Forwarder at the vanguard of sustainability policies.

With this accreditation, Tuscor Lloyds has locked itself into legislative requirements which oblige all certified companies to measure the impact of their carbon footprint in the coming years. This will make the company a leader in Sustainable Logistics in Spain.

Borja Pelayo, manager of Tuscor Lloyds’ Madrid office said:  “We decided to become pioneers in sustainable logistics. By applying for this certification we aim to demonstrate our strong belief in the importance of developing sustainable and environmentally responsible transportation. The carbon footprint certification is an important tool not only because it gives us an accurate measure of our current emissions, but also because it provides a reference point for our 2% annual reduction plan”.

There are two paths to achieve this reduction: by active policies on emission generating agents or, if not possible, offsetting current emissions by actions such as planting trees. “That gives us a very clear target to work towards.” affirms Pelayo.

 

Keeping Emissions Down

 

Tuscor Lloyds Spain has developed the certification project in collaboration with Agora consulting by verifying the CO2 emissions of its three offices in Spain (Barcelona, Madrid, and Valencia). All of its employees will be expected to look for savings in emissions, including commuting and work trips, company infrastructure, supply chain, and especially the transportation services it offers.

In effect, Tuscor Lloyds Spain has certified the carbon footprint of its entire logistics operation – including that of its principal route, Europe-México, in both maritime container freight forwarding and air transport.

Tuscor Lloyds intends to push the carbon footprint project concept further. Pelayo says: “Due to forthcoming regulations on this matter, we don’t want to stop here. We also want to promote the initiative together with our key customers, offering them a carbon footprint study for the services we provide them as freight forwarders”.

For more news and industry insights from Tuscor Lloyds, click here.