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What is an “Integral Logistic Risk”?

Margarita Libby developed this concept on which she sustains the analysis of her clients’ operations.  

It is the set of risks that stem from the actions beginning with the decision to purchase a company and which can affect the fulfillment of the arrival of the acquired goods, in the conditions expected, to the point that has been determined as “final“ for the same.

How is “Integral Logistic Risk” measured?

It is measured by means of a series of factors that intervene in an operation versus family of product, for example.

Every region has its predominant factors; they are granted a value that represents its weight in an operation and every operation has a risk in accordance with the final value that represents the percentage of “Integral Risk”.  

 
Why does a company need an analysis of Integral Logistic Risk?

In more than 90% of the companies, the top management level is not familiar with customs regulations and they only know the versions of their specialized personnel who, in most cases, are not aware of how their service providers operate. 

It is no secret that logistic barriers can be diminished. The governments are increasingly investing in minimizing their impact. Highways, bridges, ports and borders and their infrastructure, as well as the privatization of services, are evolving and this will undoubtedly bring substantial progress. 

However, all of the above will have no significance on the success of th elogistics management if, among other reasons: 

·     The shipment did not take place because the bank did not make the payment according to your instructions.

·     There is an overload at the port of origin and you do not have any contract with the shipping company that can secure the space.

·     At the customs head office, the shipment that enters or exits a country does not have the appropriate documents and it is withheld by customs.

·     If the negotiation method did not take adequate insurance into account.

·     If the documents do not arrive on time, or are incorrect.

·     If the carrier delayed its arrival and back-up stock is used up.

Why does a company need training?

·     For training, it is possible to choose schedules in which all involved levels can participate. The objective of this is precisely that everyone will speak the same language.

·     Companies need training in order to be able to face and interpret the changes and the evolution of the regulations.

·     The companies must be aware of the international environment surrounding a purchase – sale transaction, its rights, obligations and claim methods.

·     Only a strong theoretical foundation allows understanding and designing the necessary actions for minimizing the effects that regulation changes can exert on the company.

·     Margarita Libby does not only offer your company the analysis, the diagnosis and the corrective solution, but also makes it a part of the construction of those solutions.

The misconception: Standardized logistics

Companies can not assume, even in a globalized world, that the environment will adapt to its logistic designs.  Dynamism, the capacity to adapt and to leave behind the dangerous misconception that “it has to work the same everywhere”, is necessary in order to reach real goals in real places.  

Import and export procedures, road and port infrastructure, social conditions, delays caused by climate phenomena, the regulated provision of water, electricity, etc. are not the same in all the countries.

World Commerce Barriers

Three are recognized in which it is possible to include what can normally constitute a disadvantage to consider.

Tariff barriers: Commonly associated with the percentages that represent the collection of a Tariff associated to the customs value of a product, when this one is going to enter a country.

When it is very high, it is indicated as a big obstacle for the product to be commercialized there.

Non-tariff barriers: These barriers are associated with Sanitary Norms, (manufacture standards, composition materials, etc.) or with requisites such as labeling, sizing, weight, etc.

Logistic barriers: These are the entrance infrastructure of ports and borders, highways, communications, safety, access to services, etc. 

Analysis and Diagnosis

These concepts are inclusive, because one will originate the other. 

The analysis is done through documentation and in the field. 

Analysis of functionality of the supply and distribution chain from the stand point of logistic barriers, tariff barriers and non-tariff barriers.

Every operation must be analyzed and diagnosed with regard to its environment as well as in its internal aspects: it is not possible to separate a company from the system in which it is found.

Every country has its own legislation. The analysis and the diagnosis must be done in accordance with this legislation.

The analysis is based on the design of the International Purchase Sale, be it a Public or Private purchase and being located in the perspective of the importer, the exporter or the country of transit.

All the analyses must be done through the screening of the logistic risk analysis due to the compliance requirements of the company that interacts with Customs and Tax authorities especially. It is possible to coordinate with other areas such as Sanitary, Environmental, etc.

Areas of Coverage

·   International Purchase-Sale Systems
1.    Commercial Conditions
2.    Insurance
3.    Methods and means of payment
4.    Route to select
5.    Negotiation with Service Providers (customs agents, carriers, insurance, fiscal deposits, etc.)

·     Storage Systems
1.    Locations
2.    Conditions
3.    Security
4.    Automation
5.    Equipment

·      Regimes
1.    Import and Export  
2.    Duty-free Zone  
3.    Active Perfecting or Temporary Admission
4.    Industrial and Commercial Domicile Dispatch
5.    International Carrier
6.    Customs  Deposit

·     Verifications that can be submitted to a company's compliance analyses
1.    Origin 
2.    Tariff Classification
3.    Customs Value

Margarita Libby also offers: 

Consultancy in the TECHNICAL - LEGAL CUSTOMS Level so that you can have an outsourced technical department that is accessible when interaction with authorities becomes necessary.

·   Consultation via e-mail and telephone of the technical / operative type that do not require investigation and analyses for more than one hour

·    Coaching for Meetings with Customs-tax authorities

·    Coaching in Meetings with providers on the subject of claims

 
Support with the preparation of your Responses to the Procedures that Customs directly requests from you as an importer or exporter.

Some of these are:

Issuance of responses of information requested by the General Customs Office and/or related authorities.

Support with the process of Disputes and Negotiation of Claims with your Providers of products or services.

Claims, Negotiations in a possible dispute between the providers of subcontracted Customs  services or products and the Company.

It covers:

·    The injury that may be caused by a wrong application of the customs regulation at national or international level where the group is legally constituted.

·    Any conflict generated by the nonperformance of contracts or agreements of service of the providers of national or international services where the group has business.

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