A Complete Guide to Shipment Planning and Documentation

As beneficial as the export business is, it is often tasking. The shipment process requires extensive planning and proper documentation. As a new or relatively experienced exporter, you may encounter difficulties planning your shipment delivery. More so, many documents would be required along the way, which can get significantly confusing.

 This article provides a comprehensive guide on how to go about planning for your shipment and preparing the necessary documents required in the process. 

Helpful Tips on Planning for Your Shipment

1. Prepare a Proforma Invoice

A proforma invoice is a preliminary invoice issued to the buyer before a final order is made. If the buyer agrees with the price and specifications in the proforma invoice, the final invoice will be made, and the order will proceed. The shipment planning starts from this point. It must be noted that you might not need to issue a proforma invoice if you use an e-commerce platform to take orders. 

2. Digitize Your Planning Process

Whether you are an experienced or small-scale exporter, digitization is key to your business. Many times, exporters have to accept and organize numerous purchase orders. These orders have varying products, specifications, and quantities. Documenting these order specs on paper would be highly ineffective and prone to mistakes. To prevent these avoidable mistakes, it is advisable to use digital applications that help to organize tasks. E-commerce export marketplaces like Doocan also provide features that help exporters seamlessly sort orders. 

3. Use an E-Commerce Platform: 

As earlier stated, e-commerce platforms are helpful in digitizing your planning process. However, they offer much more than this. These e-commerce platforms are B2B export marketplaces that enable exporters to receive orders digitally, charge near-accurate shipping fees, and receive these funds safely. Many platforms also incorporate a shipping schedule that helps exporters determine product orders, expected shipping date, quantity, and delivery location. 

4. Prioritize Proper Packaging

Goods often go through a rigorous transportation process before they arrive at the delivery destination. This process exposes export products to the likelihood of severe damage. It is advisable to properly package and arrange your export products to avoid this. Fragile goods should be specially packaged, and freight forwarders should be informed of the fragile goods on board. 

5. Use a Reliable Logistics Company

Shipping lines often give a timeframe for delivery. However, many often exceed the time frame due to numerous circumstances. Shipping companies that do not keep to time can be detrimental to your shipment, especially if the export products are time-bound. Thus, it is advisable to do extensive research on shipping companies before opting for one. Also, e-commerce platforms can offer assistance with utilizing reliable shipping lines. A platform like Doocan provides logistics assistance to exporters. This reduces the likelihood of unnecessary delays or shipment losses. 

6. Prepare Your Documents

Exportation involves a lot of documentation. Customs officers and destination countries require numerous documents before goods can be successfully shipped. This is why getting in touch with an expert or a customs broker is vital. Most customs brokers are affiliated with shipping lines or freight forwarders. They also have a strong knowledge of documents exporters require to ship their goods. By getting in touch with brokers, you can prepare documents ahead of the shipment. This fast tracks the clearance process for your goods. While the necessary export documents have been discussed in a previous article, other documents will be explained in this article. 

 What You Need for Shipping Documentation

• Bill of Lading: A bill of lading is a receipt issued by the shipping company (called the carrier) to the owner of the goods (called the shipper). It is a legal document that bears cargo details like quantity, type, and destination. Most importantly, the BoL must be attached to all export products. Some customs authorities also demand the BoL at the point of importation.

• Certificate of Origin: A certificate of origin is a document that confirms that export products are manufactured or processed in a specific country. Like the bill of lading, the certificate of origin also contains details on the export products. The document is required during the importation process and is used to determine whether export goods are eligible for imports.

• Shipper’s Letter of Instruction (SLI): An SLI is a document highlighting shipping instructions for the freight forwarder or shipment carrier. The instructions are issued by the exporter and are used to ensure that the shipment is rightly delivered. 

• Letter of Credit: The letter of credit is a document issued by a bank on behalf of an importer. Since the export process is often lengthy, it is generally challenging to determine when to make payment. More so, importers are usually wary of making payments beforehand due to the possibility of product defects. The Letter of Credit contains an undertaking where the bank guarantees that it will pay the exporter at an agreed time. It is considered one of the safest payment methods for exports. However, the emergence of e-commerce platforms has reduced the need for this document. An e-commerce platform like Doocan operates an escrow payment method where funds are safely held and immediately released upon the delivery of the goods. This method reduces the fears and risks attached to the exportation business. 

Shipment planning is vital. It ensures that your shipments are timely delivered. It also prevents unnecessary inconveniences. It is also essential to start the planning process immediately after an order is made. This will give you enough time to plan for your shipment, hire appropriate agencies, and prepare the necessary documentation. More importantly, e-commerce platforms can help you digitize all these processes. For example, the Doocan export e-commerce platform currently has a waitlist for Indian exporters. By joining the waitlist, you can be a part of reputable Indian exporters who enjoy the platform’s benefits to expand their footprint to the US. To join, sign up here.