International Trade Logistics

International Trade Logistics

Nescafe export processes to Singapore

Introduction

The growing rate of globalization has created rational processes under which people, firms, and countries worldwide interact effectively. The aim is to reduce existing barriers by providing various brands, ideas, and products to reduce operating costs. Thus, the importance of globalization is to connect countries and companies to operate in global markets. The approaches and trading logistics are facilitated by creating positive trading relationships and effective supply chain management processes (Bakhtizin et al., 2016). To some extent, it is responsible for enhancing trading opportunities with the desire to increase the rate of production to promote market development and increase revenues and profit generated from international trading processes (Kshetri, 2018).  Therefore, the introduction of Nestle Company in 1938 is attributed to current success in the domestic and foreign markets. Management of the company has improved the manner of market operation by establishing several subsidiary companies worldwide, especially in Singapore.

The operation of the Nestle Company is based in Switzerland, responsible for producing various brands of coffee. Strategic measures undertaken by the company are necessary for the corporate entity to meet products’ demand in the domestic and international markets. As a result, the firm and management have considered different international trade logistics necessary to ensure the successful export of coffee brands to the Singapore market (Kshetri, 2018). Decisions to venture into the international market are attributed to people’s coffee consumption behavior and demand for the products. Nestle Company has drastically developed measures necessary for marketing various coffee brands in international markets (Foltz & Ramakrishnan, 2013).

Nevertheless, the culture and personality of people in Singapore have rapidly shaped consumer behavior leading to current market demand. Therefore, the report’s role is to provide a rational analysis of the essential requirements necessary for the effective and efficient export of the products to Singapore. These are determined by legal requirements and documentation fundamental in ensuring successful transport systems.

Packing and packaging

The packaging is an essential aspect for the company to protect the products on export. The essence is to protect the items form physical impacts such as wetting, bruising, and hitting incidents capable of occurring during export. Thus, the packaging’s role is to allow consumers to access products in the most recommended economical manner to create more natural storage processes. Additionally, the packaging is a significant aspect to ease the manner of making consumer choices as finished products’ information it holds (Pierre & David, 2013). During packaging, crucial information regarding the product includes production date, ingredients, producer firm, details on the usage of the product, and use-by date. The aim is to provide convenience to international sellers and consumers.  Additionally, the role of ensuring proper packing of the product is to limit the number of people accessing the products during transportation to the desired destination.

• Physical characteristic

Nestle products’ physical properties contribute to successful and comprehensive packaging, enhancing the company’s competitive advantage. Thus, the company’s management considers choosing the right materials crucial in packing commodities for export to meet ultimate business goals and objectives. As a result, the packing design is suited with the desire to protect the products during exportation, delivery expectation, and desired storage requirement. The company considers using innovative packing procedures based on the coffee product’s nature (Foltz & Ramakrishnan, 2013). The essence is to maintain the brands’ high quality and keep it secure until it reaches the desired consumers or export destination. Some of the physical characteristics influencing packing and packaging of the product in transit include size, design, and shape recommended by consumers in the international market. By doing so, it improves flexibility, storage, handling, and transportation. Further, packing and packaging design are used to enhance the visual character of the products.

• Types of packaging

Global companies have made several changes that are necessary for influencing the packing and packaging decisions. Thus, the management’s role is to make decisions that are influenced by the desire to ensure a sustainable environment. Proper environmental conservation measures are becoming a significant concern among companies operating in global markets (Koberg & Longoni, 2019). As a result, the implementation of environmental protection policies has influenced the functions of Nestle Company. Thus, the packaging materials are capable of reducing instances of environmental pollution. Such measures contribute to the company’s role in taking part in affirmative corporate social responsibility to achieve competitive market advantage.

The packing decision of the products is determined by the manner of product handling and method of transit. Typically, the nature of packaging and packing requires extensive planning and consideration of international export logistics. The freshness of the coffee brand is the first consideration in making packing decisions. The essence is to ensure the products distributed to various stores, cafes, businesses, or shipped to the international market remains fresh (Koberg & Longoni, 2019). Such measures are necessary to ensure coffee brands stay fresh during the transition period. Thus, to accomplish the products’ desired quality, the firm has developed Modified Atmosphere Packing (MAP) strategies that are implemented.

Coffee packaging convenience is another option used by the company to meet the market and consumer values. Using zippers as one of the most popular re-closeable options enables the consumer to use the brand after opening effectively. The role of zippers in packaging is to provide an effective barrier to any form of staling. Further, clear labeling is another approach used for packaging commodities set for transit (Bakhtizin et al., 2016). The aim is to create proper communication on the origin of the product and the destination in the international market. Thus, different packaging types are used by the Nestle Company.

Thus, the products are packed in foil-sealed bags. The importance of packaging is to ensure the products remain dense and capable of maintaining natural flavor. It as well protects the products bacteria attack and ensures the capability of increasing shelf life. Other materials used at this stage include packaging bedding and clothing products. The process involves removing the bag’s oxygen to keep the fabric tight and secure to prevent fungi and other bacteria’s growth.

Additionally, there are uses of poly bags or pouch. These are customized designs and styles to ensure products on transit are secure and visually attractive to customers in domestic and international markets (Yang & Takakuwa, 2015). Therefore, packaging type depends on the manner of enhancing product security and attractiveness to consumers.

• Labeling and design for sustainability: Advocating Shipping

Product labeling is an essential feature for the Nestle Company to attain marketing goals and objectives. It helps the firm effectively and efficiently market the products offered by the entity to allow consumers to understand and know more about the products. It is used in giving essential and crucial product information such as uses, instructions, and ingredients (Chen, 2014). Thus, the company’s product labeling is done in various forms of sizes, materials, and shapes of the products. To some extent, it is used as a display for sale on shelves. These are necessary measures of communicating the manner of handling and disposing of the products. However, for the Nestle Company, labeling is essential in promoting the product in the global market.

Additionally, the measures used for labeling are intended to provide exaggerated product information to ensure market sustainability. The company and product marketers’ role is to grab consumers’ attention to influence purchasing and buying behaviors. Nevertheless, the company is currently using labeling strategies to beautify product and give the ultimate visual appeal to potential consumers. The packaging is also used for the firm’s convenience and information transmission to encourage prospective buyers to continuously use the products (Bakhtizin et al., 2016). Therefore, product packages and labels’ importance communicates how to apply, transport, recycle or dispose of the packaging or product for environmental sustainability.

Shipping

The world is experiencing rapid growth and globalization; it is necessary to develop an essential measure to promote goods from one nation to another. These are influenced by the desire to mitigate costs and attaining efficient transport systems. Thus, maritime transport plays a crucial role in ensuring growth and sustainable development. Therefore, Shipping’s importance is to ensure that the benefits of international trade and commerce are effectively attained and spread across the global market. Based on the availability of port services such as lading and unlading, warehousing services availability of transport mode shipping is an appropriate method (Baruffaldi et al., 2019). To some extent, the transport method is capable of connecting different countries in a short period.  The aim is to create mechanisms and processes of promoting and boosting international trade.

The Port of Singapore is considered as the most effective destination for off-loading and capability of the company utilizing shipment products. The port is adequately equipped and busiest as it serves as a global destination for imports and exports. The port’s suitability is attributed to well-developed infrastructural networks that are the movement of goods from the port’s warehouse to the immediate market. Over the years, the port has experienced drastic development projects to facilitate service delivery (Saberi et al., 2019). These are reflected by the temperate provision of services such as warehousing and packaging of products. Moreover, it can allow for large shipments.

For effective and efficient export service, the management of Nestle Company needs to consider the reliability of shipping services. These are determined by the ship’s timely arrival to Singapore, which is the ultimate destination for coffee products. The essence is to help the firm create positive corporate in turn to grow the business (Foltz & Ramakrishnan, 2013). A successful business is determined by the ability to meet the needs and expectations of customers. The reliability of Shipping is determined by reduced cost, loading, and off-loading time.

• Port and Ship

The role of the Nestle Company is exporting products to Singapore is influenced by the ability of the management to consider the appropriate port in Switzerland and the availability of port services in Singapore. Ultimate decisions by the company ought to take into consideration the efficiency of the port services. Before undertaking Shipping, the Nestle Company’s management needs to consider essential components and infrastructures shipping infrastructure (Kshetri, 2018). These are suitable elements for effective service delivery. Such equipment includes port bridges, procedures necessary for load clearance, transport systems’ safety, and loading and off-loading facilities. The facilities are determined by the location of the port (Bakhtizin et al., 2016).

Additionally, Nestle Company and the entire management ought to consider the transport systems’ ability to access appropriate warehousing facilities. The essence is to attain the proper storage of commodities. Thus, the shipping decision-making processes are determined by the choices of the desired port for export.

• Warehousing

The availability of warehousing influences appropriates exporting decisions. It provides a crucial destination for storing products imported from Switzerland before they are shipped to the required location. Thus, importers and exporters’ role is to understand the appropriate port with proper warehousing facility to ensure security for the imports. Therefore, the warehouse site is fundamental to ease transport systems from the port to the desired destination and safety of the products (Foltz & Ramakrishnan, 2013). Available warehouses are supposed to be located near transport routes such as motorways, railways, or the selected shipping port. As a result, the location will be determined by the importing company’s overall growth and potential market. The essence is to ensure timely and effective delivery. Additionally, the management of Nestle Company is compelled to determine the capabilities and services offered by the warehouse. These are determined by space, staff, and equipment capacity effective in handling large volume, variety, and specific requirements.

For the case of Nestle Company, it requires to source for transport systems to accommodate a more considerable amount of products necessary for shipment. The approach is to reduce the chances of the firm suffering from product damage and mishandling during transportation. Nevertheless, understanding other services, such as storage, is necessary and beneficial to the organization (Chen, 2014). These are measures that are required to ensure products are capable of maintaining original flavor and quality. Thus, the warehouse should be located near the company and accessible transport to the desired port. It will facilitate proper product labeling and packaging by mitigating costs and maximizing space.

Documentation

Documentations in international trade play a vital role in facilitating the flow of goods from one country to another and facilitating the terms of payments. It is widely considered an essential process to form international trade as a business cannot take place without proper documentation. The documents are responsible for accompanying different forms of shipment that move from producers to the potential market. However, international documentation’s success is determined by the proper provision of details and relevant trade information (Baars & Ereth, 2016). In reality, the documents serve as proof of shipment and rational insurance coverage of the cargo. Therefore, the documents are necessary for providing a legal perspective of commercial operations and activities between the buyers and sellers.

• The commercial invoice

A commercial invoice’s importance is to demonstrate the legal agreement between the exporting company and the recipient. The document’s importance is to describe various types of goods and the amount due to the customer receiving the commodities. Additionally, the trade document’s role is to protect merchants from any form of exploitation by exposing fraudulent buyers and sellers in the international market (Bakhtizin et al., 2016). Other essential information provided under the document includes shipping information and consignee content.

• Export sales contract

The role of the export contract is to illustrate the conditions and requirements necessary in accomplishing international trade. The document is crucial in providing an essential element of export, such as product shipped, standards, and product specification. Additionally, it provides detailed information on parties involved in the transaction and products’ nature (Baars & Ereth, 2016). Thus, the Nestle Company is an exporter, needs to consider export challenges, market entry strategies, and compliance with customer requirements. Further, the document ought to demonstrate the export contract’s total value and agreed terms of delivery.

• Consular/customs/Pro-forma invoice

In international trade, the importance of consular invoice certifies products’ intended shipment from one nation to another. The document is crucial as it provides, such as the value of the shipment, consignor, and consignee. The document is obtained from a representative of the country’s destination and the commodity (Duan & Xu, 2016). The document’s essence is to facilitate the procedures required for meeting custom duties and procedural collection of international trade taxes. Additionally, the Pro-forma invoice’s role is to oversee the overall processes of importing and credit letters from the seller to potential buyers. Therefore, the customs officials can use the document to confirm shipment and determine the cost of goods concerning import custom duties.

• Packing list

The document is important in providing specific content of products that are required for shipment. It is used by the customs authorities to evaluate compliance with custom fees and duties. The information contained in the document includes the types of goods, location of containers, and the cargo’s overall weight. The essence is to inform the companies on transit products (Bakhtizin et al., 2016). Nevertheless, it also allows the importing company to cross-check the shipment content as provided by the information in the Pro-forma invoice. Additionally, the exporting company can use the content of the packing list to issue a bill of lading (BOL).

• Bill of Lading

The document’s role is to serve as an official receipt for the cargo on transit and a crucial contract for transporting the products from one country to another.  The essence is to provide official ownership of the shipment of the goods. It is used to cover domestic and international transit to determine the specific destination (Pierre & David, 2013). Crucial information includes the agreed terms of payment, description of products, destination port, and traders’ names taking part in the transaction.

• Certificate of origin and value

The document is used in international trade for certification that products for export are produced, wholly obtained, and consequently manufactured from Switzerland. Thus, it is used by exported to declare nationality of the goods (Shamout, 2016). Additionally, it is used by the exporting company to declare proper and full compliance with international custom requirements.

• Pre-shipment inspection certificate

This is a mandatory certification that is required to facilitate transactions in international trade. Usually, an independent and authorized inspection agency is provided to certify compliance of goods to specific international trade requirements on sale contracts (Duan & Xu, 2016). As a result, the document’s role is to ensure goods on transit conform to tariff requirements, eligibility of imports, prices of commodities, quantity, and quality as ordered by the importing company. To some extent, the certificate is used to transfer payment as agreed by trading partners.

• Certificate of marine insurance

This is a document issued by the insurance company to give mandate and responsibility to the shipper responsible for products and goods on transit and other forms of shipping activities. Details provided to the insurer should be determined by the export contract agreement and several stages in Shipping (Baruffaldi et al., 2019). Thus, the insurance company’s cost can be paid by either of the partners involved in the transaction. The importance of insuring goods on transit is to facilitate compensation in product damage and loss before reaching the desired destination as agreed by exporter and importer.

• Miscellaneous certificates

The document is responsible for indicating the collection of services offered by the shipping company to customers. These demonstrate legitimate ownership of goods issued for Shipping by Nestle Company (Duan & Xu, 2016). Under the provisions of the document, the ancillary services are necessary for systematic procedures necessary for resettling shipping conflicts.

Conclusion

Globalization has drastically contributed to greater interconnectedness among countries taking part in global trade. These are enhanced by improved communication structures that are necessary for promoting global business. As a result, investors can access new investment and business opportunities due to increased study of new and emerging global markets. Thus, products previously available in one country are currently finding their way into the international market outside the respective nations due to an increased globalization state. To some extent, countries are growing economic activities through an increased rate of investment opportunities and trading activities taking place from one country to the other. The trend has contributed to the massive development of international trade, leading to the competitive nature of foreign trade. Thus, developed countries are effectively taking part in the export and import of products to meet global trade standards. The essence is to meet the needs and demands in the prevailing market conditions.

International trade is significant in ensuring countries are capable of meeting the needs and requirements of customers. These are beneficial to countries that have limited resources to meet consumer demand and expectations. Countries across the world gain different comparative advantages based on rational market developments. However, success in international trade is attributed to the availability of legal regulation and proper trade documentation. The essence of law is to eliminate fraudulent economic activities considered to affect rational trade development. Additionally, it has facilitated the manner of payment, leading to active economic growth across the world.

References

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