Training

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Saint Martins College China ConferenceApril 9,
2004
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Discussion Topics

• 1. The Cast!
• 2. I Have a PO, Now What?
• 3. Managing Critical Cost Events
• 4. Documentation Required for Export
• 5. Export Documentation Overview
• 6. Ocean vs. Air?
• 7. Network Power!
• 8. Export Pre-Planning Check List

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The Cast!

• Exporter
• Logistics Team( Consolidator, Forwarder)
• Government Agencies (Customs, US Export
  Assistance Center)
• Origin Local trucking company
• Origin Stevedore (port operations - load
  containers) or Cargo Handling Agent
• Steamship Lines/Airlines
• Destination Stevedore/Cargo Handling Agent
• China Customs Broker
• Destination local trucker
• China Warehouse / Distribution
• Your Customer in China

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I Have a PO, Now What?

• Overseas inquiry or referral to purchase product
• Buyer places order with shipper, agrees to
  payment terms(INCOTERMS)
• Agree on how to make payment (L/C, wire transfer,
  c.o.d.)
• Logistics Provider selected
• Mode of Transport agreed upon (air/ocean)
• Order confirmation with buyer, and proceed
• Repeat above over and over again!

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Managing Critical Cost Events

• Identify and consult with the exporter on key
  events in the transaction
• Confirm order with the consignee(collect
  shipments)
• Make the booking and coordinate the pick up,
  consolidation, and delivery to carrier
• Insure that documentation, security, and
  destination country requirements are discussed
  with the exporter, and confirmed prior to
  shipment departure

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Managing Critical Cost Events

• Utilize relationships with carriers and truckers
  to overcome operational challenges
• Shipment information to the exporter and their
  clients
• Documentation and invoicing prepared and
  submitted timely
• Preparation for arrival and coordination of
  delivery to the consignee
• Provide feedback from the consignee

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Documentation Required for Export

• Shippers Letter of Instruction (SLI)
• Commercial Invoice
• Shippers Export Declaration (SED)
• Packing List
• Bill of lading
• Certificate of Origin
• Solid Wood Certificate(China and others)

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Export Documentation Overview

• Required to meet US and foreign government export
  and import regulations
• Helps to convey shipment instructions and terms
  of sale to all parties
• Required by bank to fulfill obligations under
  letter of credit
• Used to assess import duties overseas

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Ocean vs. Air?

• Ocean
• Structure of Rates- FCL-LCL, Contracts, Transit
  variance
• Why Ship Ocean?- Cost savings, Space, commodity
  value, Variety of Transit Time
• What To Look For- Experience, Competitive
  pricing, Schedules,Visibility Tools,
  Consolidation service
• Air-
• Structure of rates- Pay by weight or
  volume(Dimensions), Hazardous Materials, Transit
  Time
• Why Ship Air?-Time Sensitive Cargo, Marketing
  Strategy, Special Handling
• What To Look For- Reliable carrier mix, Network,
  Information management, Single Logistics Provider

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Network Power!

• Local people running the office and consignee
  contact
• Carrier relationships
• Uniform systems, process, and procedures
• Government Agency understanding Compliance
• Distribution expertise in China

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Expeditors China Three Districts
20 offices in 3 regions to date with full
Class A license
Changchun (2003)
Shenyang
Weihai (2003)
Northern China (BJS) 3 Class A offices 4
Sales Service centers
Dalian
Beijing
Tianjin
Yantai
Qingdao
Xian
Nanjing
Kunshan
Central China (SHA) 2 Class A offices 7 Sales
Service centers
Wuhan (2003)
Suzhou
Shanghai
Chengdu
Hangzhou
Ningbo
Chongqing (2003)
Fuzhou
Xiamen
Shantou (2003)
Guangzhou
Dongguan
Southern China (SZX) 2 Class A offices 2 Sales
Service centers
Shunde (2003)
Zhongshan
Shenzhen
Zhuhai (2003)
Macau (2003)
8 New Offices in 2003
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Export Pre-Planning Check List

• Find mutual agreement in payment terms/Dates
• Logistics expertise and Network
• Demand Driven Service/Transit Model
• Proper Packaging/Crating for Export
• Visibility Communication
• Compliance Awareness
• Solicit Customer Feedback on the shipment

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www.Expeditors.com David.Wing_at_Expeditor
s.com