Direct Injection E-commerce chain

The internet has been proven disruptive to many processes and e-commerce technologies will increasingly effect the existing “supply chain” models.

The core concept of supply chains of being a complex system of sourcing and moving goods around the globe are being redefined as more goods are bypassing the traditional model.    

  • High volume parcel importing and distribution to USA
  • E-commerce parcel shipping to the USA from China, Asia, France, Europe 

 

For information on sending e-commerce parcels to the USA,  contact our parcel logistics experts.

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 The traditional model of supply chain is:

  • Buy in bulk
  • Ship in large ocean containers to destination country
  • In-land transport to point of production

This traditional supply chain model works well for intermediary products / items that are required for final production.   It has been estimated that 60% of global trade is in intermediary products.    

The shipping of intermediary products via e-commerce parcel confirms the trend towards increased business to business e-commerce purchases.

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E-commerce technologies - complemented by international parcel logistics flows - are enabling buyers to source intermediary products more directly in lower volumes.      Although parcel logistics costs continue to decline, the per kilogram is not considered a key performance indicator as is in traditional ocean/truck container shipping.    The higher per kilogram unit costs is less of an issue due to the following characteristics:

  • Items sent via express parcel have a much higher unit value
  • Fast transit allows for efficient ordering to match demand
  • On-demand ordering significantly reduce warehousing costs 
  • On-demand ordering reduced management of inventory
  • Significantly lower warehousing costs

 

The trend in Buyers are often several layers and steps away from the actual producer of the product.   Most buyers ultimately buy a product after being handled by layers of middlemen and distributors.   

Ocean and air freight transport traditionally involves single containers of thousands of like products.    High volume parcel flows involve consolidating thousands of different products to thousands of consignees.

Overseas Distributors & Direct Parcel Injection

Often, warehousing and pick/pack is less expensive in country of production.   This is particularly true for Asian economies.    International consolidators and distributors have the advantage of being closer to the point of production, bypass ocean transit and send their high volume parcel flows directly to the destination country.  

Using international direct injection, international distribution centers can provide delivery within days at a competitive unit cost to domestic distributors.     

For companies embracing e-commerce technologies, Direct Injection is becoming the natural next step in securing a more reactive supply chain model.   Direct injection is increasingly being utilized from Asia to the United States and Europe.

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Moving beyond “In country solutions”

While e-commerce technologies have built the platform, including calculation and prepayment of duty/taxes at time of check out, the physical movement has been held back by limited in country solutions.      The most common in country solutions are postal delivery and using an integrator.

Direct injection has been slow to develop due to the need for high volume parcel flows to make the flows cost effective.   As international parcel volumes have grown, new direct injection possibilities have expanded.

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New UPU Rules

 New United Postal Union rules that govern "terminal dues" are increasing (in 2020 and beyond) the cost of of parcel packets  sent from Asia and Europe to the USA and Canada.   E-tailors around the world are now turning to e-commerce direct import solutions using Express Consignment Facilities / ECCF's, Section 321 entries and USPS Global Direct Entry.

Direct parcel flows require technical integration, air cargo capacity, dedicated clearance processes, and effective domestic delivery options.

Direct Injection to the United States

The USA is the world’s largest destination for international parcels.

For shipments to the United States, the domestic postal delivery has become a cost effective alternative to the FedEx/ UPS duopoly.   Furthermore, regional networks now offer yet another option for direct injection parcels.   

Direct Injection to Europe

While shipping to Europe has the disadvantage of having to send direct to each country, most European countries have a variety of high quality domestic delivery options.   Through our Paris hub, we provide warehousing and EU Parcel Delivery (including Cash on Delivery/ COD to France, Italy and Germany).

Direct Injection to Asia and other Destinations

Direct injection is theoretically possible to every country but many smaller countries do not have the volumes to support direct injection.   However, within every economic regional exists relatively high volume parcel flows between two countries.    

E-commerce and international parcel processes are enabling international trade among a broad array of companies and industries.  The promise of global trade is being realized by companies of all sizes.

 ECCF versus CFS Part 128

High volume parcel import processes to the USA require intimate knowledge of Part 128 of the Code of Federal Regulations and how they relate to such issues as Express Consignments, Express Consignment Facilities (ECCF), Container Freight Stations (CFS), Section 321 informal entries, Reimbursable customs charges, ACE pre-arrival manifest notifications and other issues.    Contact Jet's team to assist you in understanding these issues to develop secure duty free high volume import processes to the USA. 

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At Jet Worldwide, we are proud to help connect companies around the world.     We serve as consultants to help you find the best solution for expanding your e-commerce parcel network.  Feel free to contact to discuss the possibilities.    

NEED IMPORT SOLUTIONS TO CANADA AS WELL?

Jet Worldwide provides high volume parcel import process to North America:  The USA and Canada!

 

Written by Tim Byrnes