Ex-works Cargo specializes in shipping footwear products. South East Footwear (Due to NDA) is a global footwear manufacturer specializing in high-quality sneakers and casual shoes. With production facilities located in Southeast Asia, the company exports its products to retailers and distributors worldwide.
The footwear market in the Philippines showcases a vibrant and diverse landscape, reflecting the country’s rich cultural influences and consumer preferences. With a growing population and increasing disposable income levels, the demand for footwear continues to rise, encompassing various styles and categories to cater to different segments of the market.
Shipping Footwear Products challenge
South East Footwear aimed to optimize the shipping of footwear products to enhance efficiency and reduce costs. The company previously used various shipping methods but wanted to explore the potential benefits of Ex-Works cargo arrangements.
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Shipping Footwear Products Solution
South East Footwear decided to implement Ex-Works (EXW) shipping for its footwear products. Under an Ex-Works agreement, the seller (South East Footwear) is responsible for making the goods available at their premises. The buyer then assumes responsibility for all transportation, including loading, shipping, and unloading.
Implementation Process
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Vendor Selection: South East Footwear carefully evaluated several shipping companies and logistics providers with expertise in Ex-Works cargo arrangements. They chose a reputable provider with a proven track record in handling similar shipments and ensuring timely delivery.
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Negotiation and Contracting: Once the provider was selected, South East Footwear negotiated the terms and conditions of the Ex-Works agreement. Key aspects included pricing, transportation responsibilities, delivery schedules, and liability arrangements.
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Preparation and Packaging: South East Footwear ensured that its footwear products were appropriately packaged and labeled for shipping. This involved adhering to international packaging standards, protecting the products from damage during transit, and providing clear instructions for handling and loading.
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Documentation and Compliance: The company prepared all necessary export documentation, including commercial invoices, packing lists, and certificates of origin. They also ensured compliance with customs regulations and export requirements in both the originating and destination countries.
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Loading and Delivery: With everything in place, South East Footwear made the products available at its premises for pickup by the shipping company. The logistics provider took over from there, managing the loading, transportation, and delivery of the goods to the designated destination.
Shipping Footwear Products result
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Cost Savings: By utilizing Ex-Works shipping, South East Footwear significantly reduced its transportation costs. Since the buyer is responsible for arranging and paying for shipping, the company no longer incurred expenses associated with transportation from its premises to the port or airport of departure.
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Efficiency Improvements: Ex-Works shipping streamlined the logistics process, allowing South East Footwear to focus on its core business activities. With the shipping company handling transportation and delivery, the company saved time and resources that would have been spent managing these aspects internally.
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Customer Satisfaction: The reliable and timely delivery of footwear products contributed to enhanced customer satisfaction. By partnering with a reputable logistics provider, South East Footwear ensured that its products reached retailers and distributors on schedule, maintaining trust and fostering long-term relationships.
Conclusion: Implementing Ex-Works Cargo arrangements proved to be a strategic decision for SouthEast Footwear, offering cost savings, efficiency improvements, and enhanced customer satisfaction in the shipping of footwear products. By outsourcing transportation responsibilities to a trusted partner, the company optimized its shipping process and positioned itself for continued success in the global footwear market.
