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6 Logistics Challenges Faced By Businesses for International Events Like FIFA

Having to plan for freight or shipment of goods to a foreign country to plan for a mega global event like the upcoming FIFA World Cup is a major logistics challenge faced by every business. Having to plan for logistics for international events had to encompass all potential contingencies like communication between parties, custom regulations, avoiding custom clearance delays and the legal & tax regime of the destination country. 

However, with unique logistics challenges, international events also deliver bountiful opportunities to businesses to deliver on the global stage and be known to audiences far and wide. This fact alone makes it worthwhile to chalk out the details and minutes of the plan. If done right, such a colossal event will propel your business to new heights globally. 

With the approaching event, as the hype builds up amongst fans and spectators, the headache continues to rise for businesses looking to ship their goods or business processes to the country where the event is to take place. 

Below are some of the most common logistics challenges faced by businesses for international events like FIFA:

Planning

Every country has unique sets of cultures or traditions that affect businesses of every scale and size. Islamic countries oversee considerably lesser transactions during Ramadan. Similar is the case for Chinese New Year, Golden week in Japan, etc. This can be countered with sufficient research and planning before shipping your goods. 

Another factor that plays a part is the cultural differences between nations. When in a foreign nation, be prepared to schedule itineraries and commitments on a flexible basis, without being too stringent on time. 

Yet another roadblock could be the local weather where your shipment is to arrive. You don’t want the surprise of learning about delayed goods in another country due to weather issues when the event is just around the corner. 

Customs 

Each country has its own logistics procedure, custom laws, trade documentation, and more. Every good that you ship to another country goes through local customs. As such, some items differ in custom taxes in different countries. Enlisting a local broker specializing in customs can prove to be of great economic advantage, as they are well acquainted with their local customs landscape and can help you avoid unnecessary expenses. 

Having to navigate the complex world of freight is complicated enough with the amount of paperwork required for a simple shipment, if you’re only importing goods for a short period of time, say, for a tradeshow, fair or event like FIFA. 

Under such circumstances, having to pay the taxes and duties in accordance with your cargo type just doesn’t seem fair. After all, the cargo isn’t being imported for consumption or end-use in the importing country and will be exported within a relatively short period of time. For the righteous logistics provider, there are different ways to manage your temporary import shipments, such as Carnets, securities, and duty drawbacks.

Local business customs

Business practices, traditions, and customs differ from country to country. Sometimes, business traditions in a country are queued with formalities, while in others, meetings are short, crisp, and precise. Even the tonality of the voice varies among nations; what could be considered a crisp dialogue can be construed as rude in other culture. 

In such magnanimous events like FIFA, the host country generally becomes the hotspot of varying nationals with diverse cultures, beliefs, and traditions. A little brush up on the business practices of your clients will help you navigate through all logistics challenges. 

Taxes

Complying to tax laws of the host country is a serious roadblock when it comes to shipping goods for international events. Any minor inconsistency with the provisions can invite substantial penalties and subsequently, cost overruns. Value-Added Taxes (VAT) on imports are one of the foremost tax liability for any business shipping their goods and as such, consulting a VAT expert in the country where the event is to take place will ensure due compliance with all tax legalities. VAT rules constantly change in almost every nation, and keeping up-to-date with them is a must for avoiding serious penalties. 

Environmental issues

Every logistics company and business looking to move goods must strictly adhere to all the environmental guidelines laid down by the national, state, and local government. Every country has set up the legal framework to protect the environment, and freight companies need to make declarations, abide by limitations, and follow the environmental code of the country. Emission reduction laws like anti-idling have a tendency to cause an increment in your cost involved for compliance and could, in turn, exceed the benefits that the exporting business is to receive. 

On the other hand, the need to take precautions against environmental hazards cannot be overstated, and a global mega-event like FIFA attracts millions of eyeballs and top-level scrutiny. 

Local event logistics

While handling event logistics in the country, it is advisable to partner with local contacts for their experience in the region. These local relationships form the cornerstone for successful operations once your goods have arrived in the host country. 

Establishing relationships with local contacts also help you in local transportation, security, and/or safe storage of your goods. Such local contacts also help in removing cultural and language barriers that exist in a country. During these mammoth international events like FIFA, local help also ensures local connections to the event, which may, in turn, prove to be of advantage to your business. They can ensure the smooth operation of your local logistics for hassle-free deliveries and fulfilment of all your business commitments on time. 

Shipping your goods for international events like FIFA can be a painstaking logistics challenge. Managing international logistics in itself is a huge obligation and having to fulfil commitments towards such grand spectacles calls for even more due diligence, planning, and effectiveness. And all that is within time, eliminating any potential time delays. 

Exporting your goods or business processes need the right blend of expertise, experience, capabilities and robust IT systems to reduce costs, manage the supply chain efficiently and achieve compliance.