FedEx International Priority DirectDistribution. Your seamless source for end-to-end international shipping

Transcription

1 FedEx International Priority DirectDistribution Your seamless source for end-to-end international shipping

2 FedEx International Priority DirectDistribution (IPD) This contractual service allows customers to send multiple pieces from a single location in an origin country to multiple recipients in the U.S. Goods move as 1 electronically consolidated shipment, clearing customs as 1 unit with 1 Consolidated Commercial Invoice (CCI). After customs clearance, FedEx distributes the individual packages to their final destinations. A flexible end-to-end solution that: Consolidates multiple packages or freight into a single shipment to help: Reduce fees Streamline clearance through customs A minimum of 2 packages per shipment Distributes individual shipments directly to your customers and retailers Reliability and efficiency of the FedEx network for final delivery 2

3 Benefits Saves time: a single shipping label simplifies custom clearance; use 1 (CCI) to clear multiple-piece shipments through customs as a single unit Provides quicker response to market demand: accelerates and automates the order fulfillment process Reduces cycle time: replaces the outmoded multi-step distribution processes and the use of intermediaries IPD moves directly from origin to the end recipient bypassing traditional warehousing Lower fees: lower Merchandise Processing Fee (MPF) because of consolidated clearance Advanced tracking: convenience and accuracy of tracking and tracing each shipment on a real-time basis via fedex.com, FedEx InSight and Advanced Tracking Speed to market: test new markets without investing in warehouses or fulfillment facilities in the U.S. 3

4 FedEx International Priority DirectDistribution vs. traditional distribution model FedEx IPD streamlines the process From origin manufacturing facility, multiple packages or freight are consolidated into a single shipment. Goods are transported internationally via air, surface or ocean modes and clear customs as a single shipment. After deconsolidation, FedEx delivers packages or freight directly to multiple customers. Traditional international distribution model involves a multitude of steps, vendors and carriers. From origin manufacturing facility, freight or bulk packages are palletized. Freight is transported to origin container yard or consolidation center. Goods are transported internationally and processed through customs. Freight is transported to warehouse or distribution center. Orders are processed, picked and packed for shipment. Individual shipments are tendered to delivery carrier for final delivery. 4

5 What can IPD do for you? Ship multiple packages to multiple destination delivery addresses in the U.S. Keep your inventory in transit rather than sitting in a warehouse or distribution center (DC) Increase your speed to market Reduce your costs by cutting clearance fees and reducing inventory carrying costs Provide one point of contact to help manage your distribution needs Flower Shipment Operations Customer drop-off Delivery in the U.S. Monday Thursday Tuesday Friday Friday Tuesday Saturday Wednesday 5

6 Features Typical transit time of 3 to 5 business days Money-back guarantee by FedEx Express: applies the same terms and conditions as FedEx International Priority and calculated on a prorated basis. Reliable FedEx Express network from pickup to delivery Consolidation of multiple packages from one origin location shipped directly to multiple delivery addresses in Continental U.S. FedEx International Priority DirectDistribution Single Point of Clearance (SPOC) also sends multiple packages from a single location in an origin country to multiple recipients in the United States Direct shipping to customer locations; bypassing or eliminating the need for a distribution center Clearance of your shipment as one customs entry Package level visibility from origin to destination on fedex.com Final delivery is available in Continental U.S. Hidden value: shipment value is not visible to recipients (customs value is not included in any delivery paperwork) 6

7 Rating Rates have 2 components, a rate per KG applied to the total shipment weight for transportation charges and a fee per delivery address 1. Actual or dimensional weight (dim weight), whichever is greater, will be the basis for IPD transportation charges 2. Dimensions are calculated by summing the total volume of all Customer Reference Numbers (CRNs) and dividing by the appropriate dimensional factor: Default dim weight is 166 (when using lbs.) Metric dim weight is 5000 cm3/kg Master AWB's are invoiced, not individual CRNs All IPD pricing programs are contractual 7

8 Requirements Prior to shipping: Customers work with your FedEx Account Executive to sign a pricing contract and make IPD shipping arrangements Customers enter the required customs clearance information in advance (via a FedEx automation solution) for every commodity being shipped. Consult your FedEx Account Executive The Customer Integration Consultant (CIC) submits a completed CCI to Global Trade Service (GTS) prior to the first shipment to ensure customs compliance When shipping: The entire shipment must come from 1 shipper Each package must have a FedEx barcode shipping label. The package is called a CRN or Customer Reference Number which is their CRN tracking number Customers must print labels via a FedEx automation solution which can include an approved FedEx Compatible provider The destination country requires an importer of record (IOR) and a signed power of attorney Prior to shipping, the customer provides the 10- digit Harmonized Tariff System (HTS) code for each commodity being shipped 8

9 Your source for end-to-end international shipping Fast. A solution that reduces transit times by keeping inventory moving in the air and on the road Efficient. A cost-competitive solution that optimizes supply chain productivity and efficiency from manufacturer to market Flexible. Choose the FedEx delivery network for your transit-time needs Reliable. Advanced international shipping tools and status visibility at all points in the distribution cycle Simple. Eliminates multiple points of contact to simplify global distribution transactions, providing a personal relationship with your FedEx distribution specialist 9

10 FedEx International DirectDistribution means extra efficiency, time and cost savings! More Solutions & Savings All inclusive price structure: The same rate applies when shipping to any destination in the U.S. * No holiday surcharge: Ship at the same rate, regardless of the season. FedEx Express international money-back guarantee. Count on FedEx reliability. Our time definite FedEx International DirectDistribution service is now supported with the FedEx money-back guarantee. Enhanced claim service. New process for filing claims for loss or physical damage. Improved cutoff times. * Shipping to Continental U.S., rate excludes published fuel surcharge. 10