B-5- STORAGE: A SIGNIFICANT COMPONENT WITHIN THE SCOPE OF TRANSPORT


Once transport type is determined, i.e.: land transport, sea transport, air transport, rail transport, or multimodal transport, the goods then arrive to the destination country.

If the merchandise is comprised of finished products, it will need to be placed on shelves. Products requiring processing await assembling or use. For all of these scenarios, a logistics hub, a warehouse, is necessary to organize redistribution and storage.

5-1- Storage: an important aspect of transport logistics

Regulating trade flows, manufacturing and redistribution, is becoming increasingly important. Storage is now as an important facet of international transport logistics.

Policies have long-encouraged the import of goods from low-cost countries. Short-term savings at the point of sale are offset to a lesser extent by additional storage costs.

Esandis encourage European purchases as a means to create wealth and employment.

5-2- The place of storage

Therefore, the most appropriate storage facility must be determined. Storage can be handled on manufacturer’s premises, on behalf of the importer, or at the import facility. The importer may also choose to store goods in a free zone, or a customs warehouse (managed by the state or by a private enterprise), for manufacturing and/or processing before export.

You should also know that some freight forwarders can handle dispatching logistics. Their services include both collective transport and/or unbundled transport, consolidation and/or deconsolidation operations, with or without EDI (computerized purchase orders or order confirmations).

5-3- Storage and its decision-making factors

It's going to be important to establish storage quantities and conditions. What type of packaging is most appropriate, and which Incoterms is used?

Another storage decision-making factor should be the frequency of delivery.

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Indeed, produce manufacturing has become increasingly time-specific. xxxx

It is therefore necessary to determine the appropriate quantities that need to be delivered and delivery frequencies.

Infrequent delivery requires larger storage capacity, but allows for substantial savings in purchasing. The nature of the stored goods will influence your choice of transportation. Need-permitting, the ability to buy full containers can drive down product cost. Maritime transport in large quantities with well-organized logistics can offer substantial savings compared to air transport.

In each choice, the storage costs will be passed on to the price of goods as well as transportation, insurance, warehousing and handling costs.