I interviewed Robin Balestero who discussed Establishing International Cross-Dock Logistics Platforms.
It’s nice to speak with you again, Robinson. This is our second topic that we want to cover today. The topic is establishing international cross-dock logistics platforms, which would be hubs for shipping internationally and in an efficient way. You’ve already introduced yourself. Can you start by introducing this topic?
Sure. As you know, Dustin, I’m located in Brazil, and Brazil has very complex customs systems. We have many regulations very difficult to meet sometimes, and the costs for clearing imported material, they are high in Brazil. The system is not so efficient; besides being expensive, it’s not so efficient sometimes. I have heard of friends who work with important material, and they sometimes have an average of 12, 15 days of lead time to go through customs, to get the customs release, which is, for many countries, too much to bear. This takes so long to get the customs release in Brazil, and you learn that sometimes between the physical cargo and the documentation be it the greatest cause for disarray.
The officers at the customs area, they are very strict, sometimes they are very demanding. They believe that you are bringing material and it’s your responsibility as importer to bring material according to documentation. But on the other hand, if you go on the position of the importer company, then how can you make sure that your supplier or your exporter in another country is shipping exactly as the paperwork is saying?
All those items, they can’t secure the paperwork. If they’re not matching, then you have a problem and sometimes you have to pay a penalty, sometimes you have get the correct, verified paperwork.
All this takes time and then your import becomes more expensive because it is in customs area. Also, the other concern, for example, unavailability of the material.
Set up cross-dock platforms.
For example, suppose you have plans to ship, let’s say, Europe to Brazil, material. Then if something goes off schedule, then you have to set your confirm you’re running out of specific material.
To Brazil, you give responsibility of this logistics operator to make sure each number of information for the container is really lacking the data on the paperwork. The paperwork must be very, very, very accurate. This process in Brazil, it doesn’t matter if it’s an air freight or sea freight, any customs officer will see a perfect match between paperwork and cargo. Service contracted to ship material to a country like Brazil is very helpful because you really decrease very much the risk to get the customs reduced.
You really have a narrow pipeline like this. Of course, to operate in an efficient way, you have to really work hard with your suppliers on the schedules, delivery schedules, which calls for material planning. You should only plan according to your needs. Because this is complex shipping system you probably will have a company that doesn’t know the material you’re purchasing. It’s pretty much logistics. You really have to manage your supplier and make sure your supplier base is real doing their jobs. You need materials to be shipped according to your needs with paperwork matching the cargo. For a company who has several suppliers outside Brazil, I would recommend you consider establishing a service like that for shipping to Brazil.
Thank you, Robinson, for sharing today.
About Robinson Balestero
Supply Chain Manager at Alstom Transport