# Presentation: 736466

**Transportation and Logistics: Getting Your Goods to Market**
- Benjamin Jones
- FedEx International Sales Manager

**Notes:**
Thank you, (NARRARATOR/INTRODUCTION), for the introduction.

[next slide] 

## Transportation and Logistics: Getting Your Goods to Market

**The Case for Exporting**
**Getting Your Goods to Market**

**Notes:**
As you know, global trade is expanding rapidly and forecasters don’t see a slow-down in the near future.  In fact, what we are seeing is the blurring of domestic markets – Today approximately 20-30% of goods cross borders before consumption. Experts at McKinsey predict that  “By 2025 80% of goods traded will be produced in countries different than where they are consumed.” [McKinsey and Company]

You have spent the last hour learning about the phenomenal and exciting opportunities that present themselves through the Central American and Dominican Republic Free Trade Agreement.  
As your business takes advantage of this globalization trend, and the breaking down of trade barriers, one element to international business must not be overlooked—and that is Getting Your Goods to Market.  Today I am going to walk you through some of the supply chain and logistics topics you will need to assess in order to ensure you are making the most of your transaction.  

We will cover: 
Briefly, The Case for Exporting —what does FedEx see as the major benefits to exporting and why your business should be looking beyond our borders
The majority of our time discussing Getting Your Goods to Market—The factors to be considered when establishing a transportation solution particular to your exports
And conclude with The FedEx Purple Promise.

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## Why Export?

**Exporting is what growing companies do**
**Higher margins, less competition, economies of scale**
**Specific opportunities**
**Exposure to new designs, technologies, and trends before they hit home**
**Stability and growth in market diversity**
**95% of customer are beyond your borders**

**Notes:**
First up, The Case for US Export...
In order to grow your business into new markets, you must look beyond the borders of US—makes you competitive
By exploring new markets, you are able to increase your output, creating higher returns due to economies of scale.  Looking beyond your borders also opens opportunities for new and growing markets in which competition might not be as mature—giving you a very high competitive advantage
With exporting, you can target specific markets and opportunities that can yield higher returns
Exposure to new designs, technologies, and trends help keep your product on the cutting edge of technology and trends
By diversifying your product exposure, you are less prone to market and economic fluctuations
95% of your potential market lies outside of the United States—imagine what kind of growth you will experience in these potential markets

Now let’s look at the Exporting advantages (made possible by CAFTA-DR) specifically to Central America and Dominican Republic.  
CAFTA-DR expands markets for U.S. exporters of goods and services.
Most goods from CAFTA-DR already enter the US duty-free under prior preferential programs. 
The agreement would give US exporters of goods and services the reciprocal right to do the same.  
With the adoption of CAFTA-DR, tariffs on 80% of US exports to Central America would be eliminated immediately.

This should lead you to ask yourself, What is the COST to me to NOT take advantage of these growing markets?!

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## Preparing to Export

**The Licenses**
**The Buyer**
**The Commodities**
**The Destination**
**The Transportation**

**Notes:**
Through the webinar thus far you have learned a lot from [list a few names of speakers].  They have helped you identify some of the major opportunities depending upon destination country and industry.  There is no denying—CAFTA-DR is where you want to be!

Next is to establish a few steps that will help you prepare to export—in general, not just to CAFTA.  The great thing about this webinar is that the majority of resources that can help you with each of these lines are on the line RIGHT NOW!  You literally have access to each expert at your fingertips. 

In order to be successful in export, here are some important factors that you must recognize and deal with in preparing to exporting.  Its very important to acknowledge and manage these factors—any disconnect will decrease the efficiency of your exporting strategy.

These can easily be defined as the How, the Who, the What, the Where, and the When?

The Licenses—HOW do I meet the requirements for exporting this commodity?  How do I gain the appropriate licenses to allow me to conduct business outside of the US? 
The Buyer—WHO am I going to be selling to?  Are they safe to do business with?
The Commodities—WHAT am I selling?  
The Destination—WHERE am I shipping to? Are there any special customs requirements or regulations placed upon this commodity?
The Transportation—WHEN do I need to get my product there?

I am going to spend the focus on assessing #6 – as that is my expertise – and helping you to identify some of the factors that need to be considered when identifying how you plan to get your product to market.

[next slide]

## Transportation Choices

**Air vs Ground vs Ocean options**
**Choice Factors**
- Carrier Reputation
- Speed
- Destination
- Customer Needs
- Cost
- Shipment Visibility
**Shipment Handling**
- Origin, Destination.  What Logistics options are available?
**Clearance Options**
- Carrier supplied broker, vs Consignee’s own broker

**Notes:**
What is the cost to you if you do not spend the appropriate time and attention to your own supply chain?
When establishing a stable and successful business plan for exporting, you must consider the importance of your own supply chain, getting your goods to market. Oftentimes businesses spend the majority of their efforts and capital on marketing strategies, finding the customer, making the sale, gaining financial buy-in—and overlook the importance of their supply chain.  With the investment of time, energy, and money into these first steps, it is imperative to give the proper thought time to considering your transportation options.

According to a FedEx Survey in 2004, improving supply chain management ranked as the number one overall concern among logistics and supply chain managers, surpassing security issues, cost reductions, and the introduction of new products and markets. 

Based upon the choice factors which are most important to you, you can help assess whether Air or Ground or Ocean is your best option. 

Factors to consider are:
Carrier Reputation – Is it a priority for you and your partner/customer to have a company with an established reputation? 
Speed – How much does speed to market factor into this business transaction?
The most vibrant parts of the economy thrive on fast delivery.  Ohio State University estimates that about 40% of U.S. economic activity is conducted on a fast-cycle basis.  Naturally, the air cargo/air express industry has become the leading facilitator of transcontinental trade. 
Inventory to sales ratios have declined for two decades saving 15 – 20% in inventory carrying costs through better information and planning tools.  Suppliers on different continents, thousands of miles away, can restock the shelves in your neighborhood store in just a few days.  Fast-cycle logistics will continue to be an important, growing macro-trend in productivity improvements and profitability. 
3.  Destination – Does your preferred transportation provider offer service to this area?  
Customer Needs – Are there any specific needs being requested by your customer?  Are there specific or unique needs related to this shipment?  Identifying these special requests or needs can often times help narrow your transportation options.
Cost – How much are you willing to spend on transportation?  What is the opportunity cost involved with giving up ancillary values such as speed, special services, tailored solutions, or visibility?
Shipment visibility – How important is seamless visibility and tracking capabilities?  For some businesses, especially those reliant on fast-cycle logistics, it is very important to be able to track their shipments throughout the entire transportation process.

So now that you have prioritized your transportation factors, it’s time to identify how you would prefer your shipment to be handled and the clearance options needed to get your product safely and quickly into market.  Depending on your transportation priorities, you can find providers that can develop a very unique and personalized supply chain solution to meet your needs.

A perfect example, FedEx can assess and advise you on your clearance needs (i.e. paperwork, licenses, certificates, etc), identify the most efficient transportation option (Air, Ground, or Ocean) and advise the appropriate service that your shipment should move on, act as your customs broker on the ground, advise you on how to streamline your own supply chain to save you time and money, and troubleshoot various customs and supply chain pain points.

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## The FedEx Global Network

**Today the FedEx network links customers to many locations in over 220 countries and territories, in two to three business days.**

**Notes:**
Tapping into this world marketplace:  
At its most fundamental level, globalization is a revolution in the way goods are moved from point A to point B. Moving things quicker, smarter, and cheaper is central to FedEx’s mission and has been since our inception. We spent the money, built the infrastructure, and made the changes to keep up with globalization... while helping our customers do the same.  As you grow, we want to grow with you– ensuring you safe, reliable, and fast access into markets around the world.

In addition to our robust global network, FedEx can also help you enter new markets effectively and efficiently through our trade promotion alliances.
The US Commercial Service and FedEx has joined forces to help you make an easy and secure entry into new markets by helping you identify secured buyers, understand how your product or service will compete in potential markets, and supply chain and logistics consulting.  We want to ensure our customers are getting the most benefit from their investments!

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## FedEx Products and Services

**FedEx International Priority ® **
**FedEx** **International Economy* ®**
**FedEx** **International Priority ®** **Freight **
**FedEx** **International Economy ®** **Freight***
**FedEx** **International Express Freight**
**FedEx** **International Priority DirectDistribution ®**
**FedEx** **International Economy DirectDistribution* ****SM**
**Dangerous Goods Service**
**FedEx TransborderDistribution (Mexico only)**
**Limited to certain countries throughout Latin America and the Caribbean*

**Notes:**
FedEx offers a multitude of services into the Latin America and Caribbean market to meet your needs.  Based upon the speed you desire, the distribution you require, and the commodity which you are shipping, there is a FedEx for that.

Brief explanation of services:
IP
IE
IPF
IEF
IXF
IPDD
IEDD
DG
TD

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## The FedEx Connectivity

- Memphis

- Miami

- Bogotá

- Valencia

- Extensive route authority and line haul to key markets in Latin America and the Caribbean** **
- Full range of services to handle any international express shipment

**Notes:**
What makes FedEx unique in the Latin America market is our speed, connectivity, and reliability.

FedEx has extensive route authority, making it possible for you to reach your customers all over Central America and Dominican Republic.  

On top of the convenient access to these markets, CAFTA-DR also makes express shipment access into this market faster and more reliable.
The principal impediments to FedEx service in CAFTA-DR countries are informal and unpredictable customs barriers.   For example, in Honduras and El Salvador, there is no recognition of the express industry of handling express shipments in the former customs laws.  CAFTA-DR would change this aspect of the Honduran and El Salvadorian customs law.
CAFTA-DR contains a services chapter that specifically includes the express delivery service industry, providing protection for FedEx’s services to enter CAFTA-DR markets and to be treated fairly and without discrimination by the national governments.
The CAFTA-DR’s customs chapter specifically provides provisions for express shipments, such as a 6-hour clearance requirement for express shipments and other trade facilitating measures.

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## FedEx and Innovation

**Fedex.com: *****where the business of shipping gets done.***
**Track shipment status**
**Ship documents, packages ****and freight**
**Schedule pickup**
**Order supplies**** **

**Notes:**
With fedex.com, an award-winning Web site, FedEx makes getting information, checking rates, tracking shipments and executing shipment transactions as simple as “point, click and ship.”  
FedEx understands the need for protection, visibility, and peace of mind—and we have married this need with the IT revolution and created many tools that will save you money and time:
If you haven’t visited fedex.com lately, the person(s) who manages your daily shipping activity probably has. The site is brimming with helpful information, tools and functionality to make the entire shipping process easier, faster and more controllable for your team.
Here are just some examples of the sort of real work our customers can accomplish online:
Track shipment status
Ship documents, packages and freight
Schedule a courier pickup
Order FedEx packaging, airbills and other free shipping supplies

FedEx has also taken innovation to the next level by developing other online applications to help you with your shipping needs.

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## FedEx Global Trade Manager

**Find International Documents**
**Estimate Duties & Taxes**
**Product Profiles**
**International Resource Center**
- Document Library
- Denied Party Screening
- U.S. Export Assistance
- Country Profiles
- Regulatory Updates

**GTM is a suite of online, easy to use tools and resources for shipping internationally.**

**Notes:**
International shipping can be complicated, but it does not have to be.  Anyone familiar with the process knows that one mistake can result in costly delays.  Common reasons for shipment delays include:  
International Documentation According to the U.S. Department of Commerce, the two most common reasons for delayed shipments are: 
 Incorrect and/or missing paperwork and 
 Improperly completed paperwork. 

Duties & Taxes
International shippers also encounter problems trying to estimate — prior to shipping — the duties and taxes to be levied — on their shipment.
Compliance Compliance is another hot topic with both exports, as well as imports.  Businesses must perform due diligence to ensure they are in compliance with regulations and laws governing international shipping. 
Rest assured, FedEx has developed a tool to help you assess each of these concerns and more!
FedEx Global Trade Manager is yet another example of where FedEx goes the extra mile to put our expertise in shipping and logistics at the disposal of our customers. It’s a comprehensive online resource filled with tips, information and tools for managing global shipping. It’s information that customers might spend a lot of time and money trying to find on their own, so we’ve put it at their fingertips, to make international shipping more efficient and trouble-free. I’ll tell you a bit more about Global Trade Manager in just a second.

FedEx InSight is a similar case. It’s a free management tool on fedex.com that lets customers monitor the progress of shipments, and automatically alerts them and others who might have an interest regarding any critical events that might affect the shipment’s status or delivery. Again, I can go into a little more detail on FedEx InSight in just a moment. 

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## FedEx Meets the Many Needs of our Customers

**$32 billion network offering just the right mix of transportation, e-commerce and business solutions backed by the trusted FedEx name.**

**Notes:**
At FedEx, there are approximately 270,000 people from different places and different backgrounds rallying around a common mission:  To make every customer experience outstanding.  Our customer is at the heart of everything we do.

No matter what your transportation needs, lucky for you, there is a FedEx for that...
We provide resources to help you increase your efficiency and security in getting your products to Market
Global Network: connecting nearly 90% of the world’s GDP in less than 48 hours
Supply Chain Services and consulting
Phenomenal portfolio of tailored products and services to fit the unique needs of our customers

We have created a network of Operating Companies to ensure that we have a solution to make sure we are Absolutely, Positively meeting your needs.

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## Thank You!

**Benjamin Jones****FedEx International Sales Manager****Miami, FL**
**Email: **_[benjamin.jones@fedex.com](mailto:benjamin.jones@fedex.com)__Phone: +1 305 629 3515_

**Notes:**
The rapid changes of globalization and the shrinking, Internet-connected world demand that we move forward quickly to avoid steering the global economy into the slow lane.  If we’re able to do that, then we’ll be one big step closer to maximizing the benefits of globalization and taking full advantage of an improving world economy.

In summary, part of your success in these markets is your attention to Global Logistics and Supply Chain.  FedEx is here to help you find the best solution for your needs—and give you security and peace of mind during the process.

Questions? Thanks!