Shipping, customs and storage

After production another race begins: the goods must arrive safe, on time and at a known cost.

The basic delivery terms (Incoterms)

• EXW: you collect from the factory door and bear everything after it.
• FOB: the factory delivers the goods onto the ship or plane, and you bear the shipping from there.
• DDP: the seller bears shipping and customs up to your warehouse door. Easier for you, and usually costlier.

Shipping options

• Air: faster and costlier, suited to small and urgent quantities.
• Sea: cheaper and slower, suited to large quantities.
• Express couriers: simplify the procedures for small shipments.

Customs

You usually need a commercial invoice, a packing list and a customs classification code (HS code) for your product. Duties and requirements differ from country to country and change, so consult a customs broker in your country before you order the quantity.

Storage

Choose a clean, dry, organized place with a simple coding system, and arrange stock by piece, size and color.

Exercise

Ask two shipping companies for quotes and compare the total cost, the time and what each includes, then update your true cost sheet with the actual figure.