Cardboard box with 'Please Don't Drop' notice crushed against the floor.Getty Images/iStockphoto
DHL Express Canada chief executive officer Andrew Williams knows that shipping is a key element of an exporter's success.
"This seemingly simple part of the exporting process can trip you up if you're not careful," says the graduate of Wilfrid Laurier University who has worked for the Germany-based transportation and logistics company since 2002. DHL operates in more than 220 countries and territories. Packaging is a frequent problem.
"The delivery process across countries can involve many bumps in the air, on the ground or waves on the seas," Mr. Williams says. "Without proper packaging, products may arrive looking nothing like they were packaged. Damaged products are a sure-fire way to lose loyal customers."
DHL Express Canada chief executive officer Andrew Williams: 'Are you planning on shipping dental products to Algeria? You may have to think again.' (DHL)
Here are his top five tips for making sure Canadian goods arrive intact, no matter the destination.
1. Do your homework
As obvious as this may seem, conducting the proper research is an important first step to help you narrow down in which countries you should consider expanding your business.
Assessing domestic competition and learning about the way business is conducted in your target markets can determine whether there is a need for your product. Learning the culture and local tastes will help ensure you follow the proper customs and procedures to make business integration easier.
If you are going to be shipping a significant amount of goods overseas and across borders, a solid understanding of the countries in which you plan to do business is the best way to make sure expanding there is a viable, profitable step for your company.
2. Develop your logistics strategy
You may not know the ins and outs of shipping procedures in a different country, which could lead to lost or delayed shipments, or additional fees you may need to pay. An established logistics partner with experience in your target markets can help ensure your shipments make it through customs and arrive on time.
A robust logistics strategy that considers customs clearance and startup costs can help determine if your business is equipped to handle the demands of international trading, and facilitate a smooth and seamless shipping process for both you and your customers.
3. Know your costs and financial risks
Expanding internationally can be like starting a business all over again, which means you will need to have working capital available at every stage to prepare for unexpected costs or delayed payments.
When considering your profit margin for expanding business internationally, take into account extra costs such as exchange rates and shipping, transport, duties and insurance. If you are conducting business in a different currency, keep in mind that exchange rates can fluctuate, which could affect the price of your goods.
4. Pay attention to packaging and labelling
Proper packaging and labelling is essential to making sure your shipments arrive safely. Shipping costs depend on dimensions and weight, so a variety of box sizes can help reduce costs associated with wasted space.
Clear and proper labelling can be the difference between your package arriving on time, or being held in customs. Packages need proper classification and valuation, and some products, like health-related products and pharmaceuticals, have specific labelling requirements.
5. Navigate customs
Are you planning on shipping dental products to Algeria? You may have to think again, as the customs regulations there prohibit it.
Customs rules can vary from country to country, so never underestimate how much time and preparation you may need for customs clearance. Automating your process with a database of product descriptions, commodity codes and serial numbers can simplify and expedite the process.
Besides working with an established logistics partner, local government trade departments, Chambers of Commerce and business associations' websites can provide helpful information on how customs work in other countries