Tag: Supply Chain Management

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3 Things You Need To Know About Ocean Freight | BlinkGlobal

Maritime transport is crucial to the world economy and global supply chains as over 90 of world trade is carried by sea. Maritime transport is the most cost-effective way to mobilize goods and raw materials around the world.

At Blink Global, we provide our clients with all types of freight options but for shipment over 100lbs, we recommend our clients to opt for ocean freight. It is the cheapest and the best option as shipping by sea scales well. For instance, a shipment of X lbs might cost you Y$; whereas a shipment weighing 100X lbs might cost you only 20Y$, making it the best option for transporting in bulk.

However, for someone who is new to international trading, ocean freight may appear a little intimidating. In this article, we are addressing 3 of the most common and pressing concerns that our clients have about ocean freight.

  • You Don’t Need to Book a Full Container

This is a basic concern that many people have. There are two types of options in maritime logistics: LCL and FCL. FCL, or a full container load, is a shipment process where you get a full exclusive container for a single shipment. In FCL, your cargo space is not shared by any other cargo. However, in LCL you do not get an exclusive container, instead, you pay for the share of the space you use. With LCL, you are not required to book for a full 20 or 40-foot capacity container.

  • Customs Clearance at Ports Isn’t That Complicated

Many people believe that customs clearance at seaports is way too complicated compared to airports. A good freighting partner such as Blink Global will make sure that you meet all of the legalities, have adequate clearance documents, and have paid all the necessary fees beforehand. Meeting all of these simple pre-reqs will ensure a smooth passage of goods from the port authorities.


  • Pricing is Not Complicated

Calculating ocean freight is in fact easier than air freight or land freight. LCL shipments can be expensive in terms of price per unit. However, since you are not required to book a full container, you can ship limited goods at a fair price. For LCL shipments, the freight is calculated in terms of the volume your shipment will acquire (for exceptions like fragile or extremely lightweight cargo, the pricing may be different).  For FCL, you have to pay a flat price for the container.  

About Blink Global

We’re your Global Sourcing Partner. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision. Get in touch with us TODAY!

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Difference Between Cargo and Freight – What’s Best For You? | BlinkGlobal

Freight and cargo is the most widely used terms in the business and commerce sectors. Many entrepreneurs confuse freight with cargo and vice versa. Generally, the two terms can be used interchangeably, but in supply chains, the two terms cannot be cut from the same cloth as it may cause confusion.

In this post, we are going to compare freight and cargo. What both terms stand for and the differences and similarities between them.

Cargo:

The term cargo refers to the shipping of goods and supplies via sea or air. Cargos are usually sent on ships and planes. For a certain shipment to be classified as “cargo” it has to travel over large bodies of water, meaning going from one continent to another. Cargo vessels and planes are meticulously designed to carry bulk quantities of goods and raw materials across the world. The term cargo is often used when discussing international shipping.

Freight:

As opposed to “cargo,” the term freight refers to the shipping of goods and supplies via roads or railroads. This shipping typically uses tractors, trucks, and railroads, hence the terms freight truck and freight trains. For a shipment to be classified as freight, it has to remain on the land. While some goods may be moved across a country via air, it resorts to being freight as it resumes travel overland.

The Term Air Freight

As we mentioned earlier, goods are classified as freight when they travel across the land but lately, we have also seen professionals using the terms “air freight” and“sea freight,” which is also commonly accepted as correct usage. This is primarily because the term freight is also used for the payment when certain goods are being transported.

It must be noted that mail cannot be classified as freight as it generally does not include commercial goods. The right term for mail, whether it be bundles of letters or packages or parcels, is cargo. Mail is never referred to as freight, whether it is transported via air, land, or sea.

Difference Between Cargo & Freight

The main difference between the two is the medium and vehicle of transportation. Cargo is usually moved by large vehicles, such as vessels and cargo aircraft, whereas frights are usually moved by smaller vehicles such as trucks and vans. Like we mentioned earlier, the term freight also refers to the cost/payment of the goods being moved from here to there, cargo does not refer to anything else except goods or products. 

Freight Solutions by Blink Global

Ocean freight is the most cost-effective solution for shipment on a large scale. At Blink Global, we have partnered with the world’s leading shipping and container transportation companies to provide you the most efficient, reliable, and cost-effective services. Get in touch with us today!

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Minimizing The 3 Major Risks of International Sourcing | BlinkGlobal

There is no debate in saying that the benefits of international sourcing are endless. Manufacturing capabilities that sometimes are unavailable domestically and availability to cutting-edge technologies that exist in certain markets make international sourcing a wise choice.

However, with great opportunities come great risks. Owing to the rapid changes in the global market environment, potential risks and uncertainties are now also part of the game. It is very important that you understand these risks, make a scientific assessment, and then analyze if international sourcing is the right choice for your business.

So what are the common risks and dilemmas? How can organizations minimize these risks and optimize the benefits of international sourcing without jeopardizing their investments and supply chains?

Unexpected Delay in Shipping:

Various factors can cause expected delays in shipping. Shipment delays can pose some of the most serious constraints to business operations. The most common factors include vessel delays, disruption in logistics, as well as lack of coordination of the freight. If you are transporting via sea, be prepared for things like bad weather, shortage of space in the vessel, and port congestion.

Solutions include advanced planning and not relying on the vendor-provided ETA but calculating the expected delivery time yourself. Calculate the probable transit time considering the possible delay factors such as weather conditions, holidays in various parts of the world and then make a plan based on the evaluated factors. Experts suggest adding at least one week to the expected transit time as a provision to the unexpected delays.

Quality Risks:

Quality assurance remains the biggest concern as you cannot monitor and manage the manufacturing process in a foreign land. If the supplier compromises on product quality, your whole investment can go down the drain. Quality risks can occur due to serval reasons such as lack of communication and misunderstanding. It’s not that suppliers overseas are some fraudsters ready to rob you but it’s often the lack of communication that results in unintended consequences.

One way to evaluate the supplier’s capacity to meet your quality requirements is by asking for a physical product sample prior to placing a real order. Many suppliers volunteer sampling requests as it demonstrates their seriousness and depicts that they are truly up to the task. You can also consider virtual product samples. It can either be a 2D rendered image created in Photoshop or sophisticated 3D product samples that can be tested in a digital environment.

Unexpected Costs

International sourcing is a popular choice because it is cost-effective but there are certain hidden cost factors that you must be prepared for. The most common is the fluctuations in the foreign exchange rate. Moreover, the cost of delays, losses in transit, an unexpected rise in transaction costs, contract management costs, legal discrepancies, and many other factors can contribute to the rising costs of international sourcing.

The best way to counter cost risks to sit with an expert or someone involved in international sourcing and do in-depth research of the suppliers across various locations. Take time and develop a deep understanding of the process and spot all underlying cost risks. Moreover, it’s always wise to spare a margin for unexpected expenses.

BlinkGlobal – Your International Sourcing Partner

It’s wise to partner with a reliable sourcing company as they have import and export agents that have expertise in cost reduction and quality assurance. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision. BlinkGlobal is ready to help you!

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Value Chain vs Supply Chain: What is the difference? | BlinkGlobal

Value chain and supply chain are two of the most widely used jargon in the business and commerce sectors. Many entrepreneurs confuse value chains with supply chains and vice versa. The difference between the two is apparently very subtle but there is a big difference.

In this post, we are going to look at value chains and supply chains. What both terms stand for and the differences and similarities between the two terms.

Supply Chain

In a nutshell, Supply Chain refers to the integration of all operations involved in the process of manufacturing, sourcing, procurement, conversion, logistics, and warehouse management. Supply chain activities comprise the flow of information, products, and funds between all the stages of creating and selling a product. From procurement to management to logistics, every step is a part of the company’s supply chain.   

It’s important for any organization to keep their supply chains moving as disruptions can have major repercussions. Here are the major functions of supply chains.

  •         Raw products procurements
  •         Product development
  •         Logistics
  •         Operations
  •         Distribution
  •         Resource Management

At its very base, the primary concern of supply chain management is to effectively manage the supply and demand equilibrium while delivering the products at the right time, place, and at the right cost. Proper supply chain management can help organizations reduce consumer costs and increase their overall profits.

Value Chain

In a nutshell, value chain refers to a series of business operations and creative measures that an organization takes to add value and utility to the goods and services offered by the firm. The concept of value chain comes from both a branding and business management perspective. The process involves experimentation, interpretation, and improvisation to cut back on the shortages and work with people involved at different stages of the chain.

Value chain tends to be traced in the opposite direction to the supply chain.  Value chain essentially flows in reserve to supply chain starting from end customers and going all the way up to the manufacturing and procurement of raw materials. Here are some major functions of supply chains.

  •         Finding new and better raw material
  •         Innovate and improve manufacturing processes
  •         Simply packaging
  •         Improve delivery
  •         Quality assurance

Spotting shortcomings and maximizing the new opportunities can help any organization have a competitive edge over players in the industry

The Main Difference between Value Chain & Supply chain

In simple layman’s terms, the ultimate difference between a supply chain and a value chain is the most apparent fact that supply chains do not involve value addition. The supply chain is all about keeping the supply and demand cycle optimized whereas value chains are about optimizing the supply chain for quality and adding value to make the products more presentable and resourceful for the clients.

About Blink Global

Your Global Sourcing Partner. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision. We are ready to help you make the right decision with our Price Audit Services. Get an estimate today!

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Top 4 Benefits of Outsourcing Your Supply Chains | BlinkGlobal

Supply chain management can be a gruesome and demanding task. Despite the rapid advancements in automation, enterprise risk management programs, and the availability of sophisticated communication networks many enterprises still struggle to manage their supply chain efficiently. This is largely because many enterprises face difficulties in understanding and optimizing the critical elements of supply chains such as procurement, product development, and distribution network.

Smart companies and business owners understand the importance of the skill and expertise that are required to run the supply chain efficiently. This is why many business owners outsource their supply chain department when they realize that they don’t have access to expert resources.

Outsourcing supply chains is not a new concept and has been around for a while now. Professional supply chain companies provide support and services that are backed with research, experience, and cutting edge technologies that help your business prosper.

Here are some benefits of outsourcing your supply chains.

Focus on Other Business Aspects:

Every business has its strengths and weaknesses. If supply chain management is an area where your company struggles to excel at, better let the experts handle that front so you can focus more on your strengths and capitalize them properly.

Supply chain management is a time-draining task and by outsourcing, you can utilize those precious hours on other important aspects such as marketing, customer support, PR, and innovating your products and services. Focus on your core competencies and make your company more productive.

Reduced Operational Cost

The upfront cost to establish a powerful and efficient supply chain department requires hundreds and thousands of dollars. For startups and companies with low revenue, putting up a supply chain infrastructure may mean comprising other areas such as marketing, or packaging, etc.

Third-party supply chain partners have already invested in the infrastructure development that provides the most cost-effective supply chain solutions. Moreover, they have expertise, knowledge and the skill to optimize transportation, reduce material costs, and provide better inventory management.

Prepare for the Future

3rd parties have in-house research and development teams that can help your business prepare for the future. If your demands are increasing or declining, the experts will do the math to help you analyze if your demand and supply are optimized for future needs.

With the help of supply chain consultancy, you’ll be able to produce and deliver the right quantity of products that can easily cater to your customer base rather than overproduction or underproduction that can cause your troubles.

Supply Chain Risk Mitigation:

The supply chain can never be 100{7e1984170fd929454d69f1f4a772917cb839fb26f7e1ecd6c8a5e6994cf1a858} secure and are always prone to risks. They may be internal risks such as Manufacturing Risk, Planning and Control Risks, Planning and Control Risks, or external risks such as Natural Disaster Risk, geopolitical risks, etc.

3rd parties run mock tests to identify areas of your supply chains that have high-risk vulnerability. Moreover, they estimate the financial and reputational impact of possible disruptions and develop mitigation contingency plans that will help you reduce the impact of any disruptive event.

About Blink Global

Your Global Sourcing Partner. With our deep understanding of global sourcing, we supply B2B industrial and consumer products with centralized procurement and high delivery precision. We are ready to help you make the right decision with our Price Audit Services.

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5 Tips to Maintain Product Quality When Buying From Overseas | BlinkGlobal

Much like international relations, international procurement is a matter of cost and benefits. When you decide to buy from overseas, your only objective is to benefit from the competitive markets existing in other parts of the world. Harvard Business Review says that certain countries have an inherent advantage in succeeding in particular industries. This is because their home environment favors those industries.

However, international buying can be very challenging and involves a lot of risks as every country has its subjective way of doing business. It can be very different from how things are done in your home.  Amongst other risks, quality assurance remains the biggest concern as you cannot monitor and manage the manufacturing process in a foreign land. It’s wise to partner up with a reliable sourcing company as they have import and export agents that have expertise in cost reduction and quality assurance. Otherwise, you have to be extra vigilant to ensure that you are delivered what you were promised.

Here are some tips to ensure quality when buying from overseas.

Screen Suppliers

An important part of selecting suppliers is to first make sure that they can provide what your business needs and what you want to achieve, rather than just picking suppliers who want to sell you. A good way to get a reliable supplier is by seeking recommendations from your business acquaintances or you can also look for online reviews about different suppliers. Your business acquaintances are likely to give you an honest review of the quality management and the strengths and weaknesses of that supplier.

Ask for Product Samples

One way to gauge the supplier’s capacity to cater to your quality requirements is by asking for a physical product sample before placing a real order. Most of the suppliers cater to sample requests as it demonstrates their seriousness and depicts that they are truly up to the task. If the supplier is unable to send samples as it’s expensive to ship smaller quantities of products, you can consider virtual product samples. It can either be a 2D rendered image created in Photoshop or sophisticated 3D product samples that can be tested in a digital environment.

Price Comparison

Ask for quotes from various suppliers. If a quote from a certain supplier is too good to be true, you may need to think twice about that deal. What would you expect from a steak priced at $4? The supplier that is quoting way too low is likely going to compromise on quality. This may not be the case always but we recommend that you be extra careful with suppliers that offer unreal quotes.

Communicate Communicate Communicate

Once a supplier is on board, make sure there is no communication gap. Talk to their representative regularly and tell them about your expectations. Deploy a technical member of your team on the communication front. Talk to the supplier’s engineers and relay your requirements clearly. Language can often be an issue when buying overseas so make sure that both parties (you and the supplier) can easily understand every detail.

Never Pay Everything Upfront

Many suppliers offer discounts on paying the total amount upfront but if you are dealing with a certain supplier for the first time, it’s better to obtain credit terms from the supplier. It will encourage the supplier to ensure quality and make the deliveries on time. While developing the contract, clearly mention the specifications and expectations.

Talk to the Experts:

At Blink Global, we provide sourcing consultancy. We have agents in all parts of the world to give you access to the leading suppliers and get the best rates.  Contact us for more information. 

 

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Supply Chain Risk Management – How to Mitigate the Risks | BlinkGlobal

Supply chains are to the economy what arteries are to the blood circulatory system. Healthy and efficient supply chains are the signs of a good economy whereas, clogging at any point can prove to be fatal for the entire system. Without an effective supply chain ecosystem, you will have no products to sell, no inventory to stock, and ultimately no revenue to earn.

COVID-19 caused supply chains to cease, and the effects were felt in every industry. Even after the reopening of economies and the recommencement of transport operations, the ripples of the earlier disruption can still be felt everywhere. However, businesses have now entered the recovery phase as supply chains have started to move and recover.

COVID-19 Exposed the Vulnerability of Supply Chains

COVID-19 has it made very clear that risk is always a part of supply chains. As per the ISM Virus survey, 75{7e1984170fd929454d69f1f4a772917cb839fb26f7e1ecd6c8a5e6994cf1a858} of Companies reported supply chain disruptions.

The rapid advancements in automation, enterprise risk management programs, sophisticated communication networks, and single-sourcing have allowed organizations to increase efficiency and streamline their processes. However, the new systems, on the other hand, have also given birth to newer risks.

The increase in cyber-warfare campaigns, the outbreak of a pandemic, natural disasters, uncertainty in international politics, and significant corporations filing for bankruptcies – supply chains can never be 100{7e1984170fd929454d69f1f4a772917cb839fb26f7e1ecd6c8a5e6994cf1a858} secure. In such a volatile and uncertain business environment, an in-depth understanding of the supply chain ecosystem and creating plans to increase organizational resilience to respond to any threats and disruptions quickly is critical to a business’s success.

What is Supply Chain Risk Management?

Supply chain risk management (SCRM) is a procedure that involves a series of strategic steps to identify, analyze and mitigate the risks in end-to-end supply chains.

The key to SCRM is analysis, interpretation, and management of all types of risk at all levels and tiers of supply chains and keeping a close eye on every risk object such as suppliers, ports, location, and more. A visionary approach to CRM, when integrated into the core operations of an enterprise, is a critical enabler to identify and mitigate risks in minimal time.

Types of Supply Chain Risks:

There are several types of supply chains, but they can be divided into two main categories: internal and external. 

External Supply Chain Risks: These risks come from outside of your organization, making it difficult for you to predict them. External supply chain management SCM risks are typically harder to eliminate and also require more resources to overcome them.

Demand Risks: Demand risk can occur when an organization miscalculates the demand for products and fails to understand the shift or change in buying behaviors.

Supply Risks: Supply Risks occur when the raw materials or the finished products that your business relies on aren’t delivered on time, eventually leading to the disruption of the flow of your services.

Geo-Political Risks: The disruption in supply chains due to global political events such as wars or revolutions can cause severe consequences for your supply chains.   

Natural Disaster Risk: The earthquake and tsunami in Japan broke a link in the global supply chain. Similarly, the current disruptions in supply chains by COVID-19 can also be classified as natural disaster risks.

Internal Supply Chain Risk: Internal supply chain risks involve factors and circumstances that are within your control but can cause significant crises. With the help of modern ERP software (Enterprise Resource Planning), robust analytics programs, and IoT powered solutions; internal risks can be anticipated and minimized but, to some degree, remain unavoidable.

Manufacturing Risk: Any disruption in your manufacturing operations that causes your production to go off-schedule can cause major problems in supply chain management.

Cyber Risks: Your business is always vulnerable to harm by issues that come from the technology that you use. This can be caused by malicious activity, data breaches, or due to poor practices by your staff.

Planning and Control Risks: Inaccurate forecasting of product demand, poor assessment and interpretation, and faulty product development and management can also cause a supply chain crisis.

Financial Risk: The possibility that you or your supplier may enter a situation that may threaten the financial health of your organization.

Tips To Mitigate Supply Risks

At Blink Global, we have experts on international sourcing and supply chain management. Here are a few tips to mitigate the risk and make your supply chains more resilient.

Identify Current Risks: Run a mock test to identify areas with high-risk vulnerability. Evaluate potential scenarios and provide training to staff and prepare them for times of crisis.  Conduct internal and external risk awareness training.

 Develop Mitigation Contingency Plans: Estimate the financial and reputational impact of possible disruptions and develop mitigation contingency plans that will help you reduce the impact of any disruptive event. It is also important for retailers to have a logistics contingency plan.

Diversify Suppliers: If we analyze things in retrospect, it seems that the dependency on a single country to fulfill the needs for raw materials or finalized products is the biggest mistake businesses have been making. As the quote goes, “don’t put all your eggs in one basket.” The spread of COVID-19 has certainly exposed vulnerabilities of all those organizations that relied on just one country to fulfill their supply. Create alternative supply continuity sources or secondary suppliers to ensure resilience in your supply chain network.

 Include Stakeholders in Risk Planning: Include all key stakeholders such as suppliers, logistics providers, and data management network and customer service representatives to ensure that everyone is on the same page at the time of crisis and knows what to do.  

 Consolidate Data and Ensure Easy Access: Data is the most valuable asset especially in times of crisis. In order to leverage the maximum power of data, make sure you have it organized in a single, centralized, and well-organized repository.

 Cargo Insurance:  Insurance not only gives you peace of mind but is also really effective in protecting in-transit shipments and protecting you against losses or damage in case of any natural disasters or human errors.

Secure Your Supply Chains With Blink Global:

At Blink Global, we have experts that have a deep understanding of global supply chains. We provide international sourcing and domestic sourcing services and help companies get the right raw material or finished products at the right cost. Contact us here for details.