International Trade and Logistics Report

This report examines the international trade and logistics process for Woolworths, a major Australian retailer, focusing on the import of chocolates to Sydney. It analyzes packaging, shipping, warehousing, and documentation requirements, highlighting the importance of sustainability and efficiency in the logistics process. The report also provides recommendations for improving Woolworths' international trade and logistics operations.

International Trade and
Logistics

Executive summary
Globalization is the process in which a business and other international business start
operating at global scale and its main purpose is to remove the barriers while operating at global
level. It also helps to reduce the extra cost as well. In the same way, it also provides an
opportunity to Woolworths that it can import the chocolates from point of origin to destination.
The present report will undertake an extensive analysis of Woolworths and by using different
multimodal transportation which further helps in reducing the cost is also used in the report.
Even, while shipping the quoted firm uses temperature controlled containers that helps in
maintaining the quality as well as characteristics of a product.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Packing and packaging....................................................................................................................1
Physical characteristics....................................................................................................................1
Types of packaging.....................................................................................................................1
Labelling and design for sustainability: Advocating..................................................................2
Labelling and design for sustainability: Advocating..................................................................3
Shipping...........................................................................................................................................4
Port and Ship...............................................................................................................................4
Warehousing...............................................................................................................................5
Documentation.................................................................................................................................6
International Freight Documentation..........................................................................................6
The commercial invoice .............................................................................................................6
Export sales contract...................................................................................................................6
Consular/customs/pro-forma invoice..........................................................................................7
Packing list..................................................................................................................................7
Bill of landing.............................................................................................................................7
Certificate of origin and value.....................................................................................................7
Pre-shipment inspection certificate.............................................................................................7
Certificate of Marine Insurance..................................................................................................8
Miscellaneous certificates...........................................................................................................8
Recommendations............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
International trade and logistics mainly involve purchasing, management of material and
inventory control, warehousing and transportation. In the same way, report main aim is to
describe the importance of international trade and logistics in this globalization era. The chosen
firm for this report is Woolworths, it is large retail firm in Australia and now it wants to
transport its chocolate (as a products) to Sydney. Therefore, the report will describe the
deduction of improper procedure and inefficiency on the transport process and further, the
present study will also uses different theories as well as concept to suggest and implement the
procedure during transportation process. Further, it also recommended some way by analysing
packaging, transporting and warehousing and documenting as a major part of logistic.
Packing and packaging
Packaging and packing is one of the most important element in international trade and
logistics and it also help to move the system forward smoothly and then it also leads to the
success as well. Apart from this, packaging is also consider one of an important element in
advertising and distribution Lin & Cheng, (2019). It is also analysed that it mainly affects the
entire activity of a business. Moreover, Even packaging's main role includes in storage support
such that how the Woolworths packed the things which affect the distribution of the product by
delivered the product safely. Moreover, it is also used to attract wide range of customers through
attractive labelling, its sophisticated designing and details of representation which further help to
reflect its brand in market.
Apart from this, It not only help in attracting customers, but also assist a business to build
up competition and it enhances market promotion as well. This is another main reason, of
choosing packaging in international trade and logistics because it mainly affect the customers,
profit and popularity. That is why Woolworths also uses innovative packaging material while
importing its chocolate to Sydney International Container Terminals of Newscastle.
Physical characteristics
Types of packaging
It is analysed that physical characteristic of a product generally creates direct impact
upon the customers and business. Even the packaging of a products specially in the case of
Chocolate mainly requires extensive planning during logistic process Onstein, Tavasszy & van
Damme (2019). Therefore, there are some common form of packaging which Woolworths can be
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used such as glass, plastic, foam, paper, cardboards, fabrics, corrugated boxes, boxboard and
aluminium etc. In addition to this, retailers should also structured their products in well manner,
such that they must look after the products designing and appearance. Further, the designing of
the products should be eye catching, perfect and it also describe the brand with specific theme as
well. If possible, the brand should also includes the information about a product which
symbolizes marketing and its ethical for a social.
In addition to this, there are three levels of packaging which Woolworths can be used
such that, first is Primary level, which is most closely, and directly touches the product and also
known as retail packaging as well. Its main purpose is to protect the product and inform or attract
the users (Types of packaging, 2018). This type of packaging mainly consist of plastic,
aluminium foil or paper wraps that helps to protect the product from any harm. Next is
Secondary packaging level, its main purpose is to provide branding at the time of shipping and
further it is also used to display the packaging in retail location specially in grocery stores. In the
context of Woolworths as it import Chocolate products to Sydney therefore, it uses 40 footer
container that includes the packaging of products using corrugated box which helps to draw
attention to their customers.
Last is Tertiary Packaging, that is mostly uses by warehouse to ship the secondary
packaging and its main purpose is to protect the product shipments at the time of transit and this
is not seen by the consumers. Moreover, the containers and the boxes used in tertiary packaging
make it more convenient to handle or transport goods safely with large quantities.
Labelling and design for sustainability: Advocating
Labelling and designing is an another important element that is mainly used for
marketing purpose in logistics process. It has been analyzed that generally, peoples or customers
are attracted through packaging and designing of products. Such that labelling helps to provide
necessary information to their customers about a particular products. In the context of
Woolworths, when the firm import chocolate to Sydney by using primary type of packaging and
it uses aluminum foil and cardboard as a packaging material that promote the higher quality of
products at world level Yang & Chang (2019). It has been analyzed that the main purpose of
using external packaging is to draw customer’s attention towards offered Chocolate mainly
requires extensive planning during logistic process Onstein, Tavasszy & van Damme (2019).
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Therefore, there are some common form of packaging which Woolworths can be used such as
glass, plastic, foam, paper, cardboards, fabrics, corrugated boxes, boxboard and aluminium etc.
In addition to this, retailers should also structured their products in well manner, such that they
must look after the products designing and appearance. Further, the designing of the products
should be eye catching, perfect and it also describe the brand with specific theme as well. If
possible, the brand should also includes the information about a product which symbolizes
marketing and its ethical for a social.
In addition to this, there are three levels of packaging which Woolworths can be used
such that, first is Primary level, which is most closely, and directly touches the product and also
known as retail packaging as well. Its main purpose is to protect the product and inform or attract
the users (Types of packaging, 2018). This type of packaging mainly consist of plastic,
aluminium foil or paper wraps that helps to protect the product from any harm. Next is
Secondary packaging level, its main purpose is to provide branding at the time of shipping and
further it is also used to display the packaging in retail location specially in grocery stores. In the
context of Woolworths as it import Chocolate products to Sydney therefore, it uses 40 footer
container that includes the packaging of products using corrugated box which helps to draw
attention to their customers.
Last is Tertiary Packaging, that is mostly uses by warehouse to ship the secondary
packaging and its main purpose is to protect the product shipments at the time of transit and this
is not seen by the consumers. Moreover, the containers and the boxes used in tertiary packaging
make it more convenient to handle or transport goods safely with large quantities.
Labelling and design for sustainability: Advocating
Labelling and designing is an another important element that is mainly used for
marketing purpose in logistics process. It has been analysed that generally, peoples or customers
are attracted through packaging and designing of products. Such that labelling helps to provide
necessary information to their customers about a particular products. In the context of
Woolworths, when the firm import chocolate to Sydney by using primary type of packaging and
it uses aluminium foil and cardboard as a packaging material that promote the higher quality of
products at world level Yang & Chang (2019). It has been analysed that the main purpose of
using external packaging is to draw customer’s attention towards offered products and reflect the
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quality with proper information at every phase. Even at the time of transportation, Woolworths
also uses plastic strapping, cardboards with different size in order to increases the transport
efficiency and the firm also uses different discount strategy as well that helps to attract wide
range of customers towards it.
At the time of international trade, the firm should also be aware of environment
sustainability, especially in the case of public awareness. In the same way, Woolworths also
acknowledge these concerns and also took action for protecting an environment through its
packaging process. Such that it did not uses plastic bags for packaging purpose because it affect
the environment in negative way and its raw material which are used to manufactured chocolates
are also close in geographical proximity. This helps to reduce the environment foot print, further
this also reduce the emission at early stages of a production before exporting the final products at
global level Woudsma & Jakubicek (2019). As the Australian Federal government rules, it is
quite essential for every retail firm to obey the laws that is prescribe by the government at the
time of packaging and importing a product. Otherwise, it creates negative impact upon its brand
image in market and that is why Woolworths should uses recyclables material during packaging
process that helps to protect the environment and also follow sustainability act as well. Further,
the quoted firm also working and trading under different rules with regards of Environment code
of practice in the terms of packaging.
Therefore, this clearly shows that labelling and sustainability plays an effective role
during transportation process and that is why Woolworths should also designing its packaging in
such an innovative way that it helps to catch eye of every customers. It should also follow the
sustainability act as well.
Shipping
Port and Ship
While shipping it is quite essential to includes the port of lading and unloading, and also
provide better warehousing facilities with suitable vessels in order to carry shipments for every
business. In the same way, Woolworths needs to be consider that from which port the chocolates
are exported and which port in Australia, the product will be received. Therefore choosing a best
and suitable port, transportation and logistics infrastructure needs to be considered best for
shipping process Zhan & Wang (2019). In addition to this, the infrastructure of a suitable port
should includes the bridge clearance potential so that the ship can able to pass through water
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ways in safe manner, further the cranes of the ships which are utilised for loading as well as
unloading process should be clearly monitored. While choosing a suitable port, the amount of
accessing to warehouse storage space with proper refrigerator should be examined, it is so
because for importing Chocolates, the refrigerator is quite essential part in a warehouse for the
keep the product safe and freeze.
In addition to this, a port location is an important element that needs to be keep in mind
because it is the final destination of transported product. Therefore, for importing the chocolates,
the chosen port in Australia which is considered the suitable for importing is Port Botany in
Sydney. The port have a three container terminals with twelve container births and its depth is 15
m and breadth is 213 m. The port is one of the Australia’s largest port that is dominated by trade
in containerised manufactured products. It has been analysed that this port is considered the best
for carrying bulky liquid and container shipments so that ships are able to pass without harm to
bridge Yap (2019). The reason for choosing the Port Botany is such that it is located close to
entrance of Sydney Harbour and city’s central business district. Even the port is also connected
to road and rail networks. Apart from this, currently, the port is also executing strategy that helps
in improvement of port and this is further used to optimise the process of moving cargo through
Port Botany. Therefore, this port will help Woolworths for importing the Chocolates from the
terminals to Sydney.
Warehousing
Warehousing is one of the key logistic function, in which once a product is shipped from
the foreign port to destination port, then products needs proper warehousing where the product is
stored. Even the warehouse management system also helps or allow the organization to control
and administer warehouse operations of goods and material from which they are enter in
warehouse and from where they move out. It also includes the operation such as inventory
management, pick up process and auditing Keane (2019). As Woolworths import the chocolates
to Sydney and thus it also requires the refrigerators for freezing and to maintain its quality as
well. Therefore, the quoted firm also transport the product through Port Botany to a warehouse.
In order to maintain products best quality, Woolworths also store its products in Carrington Cold
stores, which provide refrigerator facility in Newcastle. Therefore, through this, the inventory
control is processed and then further it is sent into storage where the products is actually
packaged and labelled, then completely stored to maximize the space as well. By proper storing
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the products in Carrington Cold stores, Woolworths will easily transport the product into other
country and the warehouse also gives better control over an inventory and also ensures that the
customers will also receive the products on time that also leads to generate higher profit as we ll
Adewole (2019). It has been analysed that warehousing is not only protects price but also
provides safe storage of perishable products. That is why, Woolworths uses Carrington Cold
stores.
Documentation
International Freight Documentation
The requirements of import and export is mainly governed individually by each country
with their policy. Therefore, the import documentation is completely differ from the domestic
documentation and for food industry the regulation among countries are differ from state to state.
That is why, the Australian government also relevantly develop strict rules and regulation that
should be followed by each company for transporting the products into different country Murphy
& Knemeyer (2018).
On the other side, the documentation is not only essential for safety of products but it is
also required for the environment where they are introduced. Such that proper documentation is
also required for completing the process of importing and these documentations are as mentioned
below:
The commercial invoice
The invoice is used for international trade and it is a custom document which is used as a
custom declaration and it is also provided by the company for exporting an item through
international boarder. It also includes a detail of inco- terms, prices and charges that is useful for
banks as well as insurer Arvis and et.al., (2018). Apart from this, it should also include a
statement that certifies that an invoice is true by verifying an importer signature.
Export sales contract
The export contract is also used for an international sale of a product and though it is a
common practice to export the products which are based on a performa invoice that is received
from exporters and it is also consider a safe practice because it use written and legal export
contracts. Such that this contract mainly includes name and address of parties, products and
standards with specifications Junginger, Goh & Faaij (2016). Moreover, the product name with
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size and nature is also mentioned and an exporters should also considered the constrains, rates of
exchange and some market entry strategies, area of risk.
Consular/customs/pro-forma invoice
It is the document that provides an information with regards to a particular goods and
service that will be delivered. It also includes the detail of an estimated price for available goods
and service. It is considered or imposed by the government of importing country and further
includes a fees that manage market access between countries Bensassi and et.al., (2015). It is
also differ from normal invoice because it usually pertaining the import licence and letter of
credit as well for buyer in advance of a shipment or a delivery of a goods.
Packing list
It is consider as a supporting document between a carrier and exporter that describe a
measurement and weight of a cargo. Sometimes it is consider a mandatory requirement which
describe a composition and packing of a goods, its measurements, location of a container with its
information. In addition to this, the labelling also be clear indication of an order that specify
consignee. This helps to verify the product from the sider of buyer Arvis, and et.al., (2016).
Bill of landing
It is another legal document that is also issued by a carrier to a shipper that detail the
type, its quantity and purpose of goods to being carried. It is also serve as a shipment receipt
such that a carrier deliver the products at pre- determinant purpose. It is necessary for
Woolworths because it details the multimodal flow of entire goods and includes detail such as
description of goods, name of vessels/ ports, its consignee names, bills issues and some payment
terms and condition.
Certificate of origin and value
While transporting the products, in Australia it is specifically requires Certificate of
origin in order to see where the product is produced and what are the regulations that lies for a
particular product.
Pre-shipment inspection certificate
Though it is not compulsory for lodging process but this service provides by the
government in order to protect the import revenue for the sellers Coşar & Demir (2016).
Therefore, it also make sure that the order is also filled successfully before it is dispatched and
also verify the quality of products as well. In case if some defective goods is found then the
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seller is not liable to pay for that, thus it also help to avoid return and further protect the brand
image as well.
Certificate of Marine Insurance
It is another important document that an insured also gives to a shipper which is
responsible for cargo and other activity as well. This certificates also certifies that a cargo is
insured at the time of transit and further the certificate helps to insure the products during an
entire journey, which covers both parties Savy, (2016). Through this certificate, the loss and
damage of the products is insured between the point of origin and final destination.
Miscellaneous certificates
It is cleared that the certificates are quite important while transporting the products and
with regards of Woolworths, there are some other documents that is also required that helps to
maintain the quality and ownership etc. Thus, the miscellaneous certificate also includes de-
zatization, plant health forms and chemical compounds. On the other side, if there is any issues
arises regarding legal jurisdiction that arises in commercial litigation, then both parties should
signed Mangan, Lalwani & Lalwani (2016). Therefore, it has been analysed that through an
effective documentation process, Woolworths can easily shipping its chocolate product to
Sydney by Port Botany.
CONCLUSION
From the above report it has been summaries that while an international trade and logistics,
proper documentation and selection of transportation should be require. As from the above, it has
been conclude that Woolworths utilises varying packaging and uses unimodal transport process
in order to make sure that the products is safely delivered to its destination. Even proper
documentation is also essential by quoted frim to transport its Chocolate to Sydney and make
sure that all the legal requirements are met. Apart from this, it is also concluded that temperature
and its cool warehousing also helps to maintain the good quality of products with its brand
image. Moreover, it also recommended that helps it increases the efficiency in logistics process
so that it helps to make the process cost effective. Therefore, it is also conclude that through
structural packaging, proper transportation, temperate warehousing and effective documentation,
the process of logistics can be more effective for Woolworths.
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Recommendations
From the above, there are some recommendation provides that helps a business to make
the procedure more effective , some of them are as mentioned below:
 Woolworths should use the port that have an adequate climate control storage and
warehousing so that it helps to prevent the product from any harm. As Port Botany not
have access to rail and road services, therefore, it is also recommended to the quoted firm
to choose that port which have proper network from these services Ekici, Kabak &
Ülengin (2016).
 The port should also have proper transportation facility that help to transport the products
from warehouse to warehouse in order to make sure to maintain the quality of a product.
 It is also recommended to the firm that to make sure that the economy of scale at the time
of delivery, Woolworths should use multimodal transport system that helps to make the
transportation system more effective.
 It is further recommended to Woolworths that they should use the temperate control
container while logistic and international trade such that it helps to maintain the quality of
product as well as its characteristics too. While transporting the chocolate to Sydney, it
uses normal container which affect the quality of products. Therefore, by using temperate
container, it helps to maintain the quality too.
 In order to prevent the environment, the company should also use its recyclable
packaging system that helps to reduce the negative impact upon environment Ahmad and
et.al., (2017). Even the labelling and plastic that is used by the firm should also be
recyclable so that it will not affect the environment in negative way.
 Apart from this, the company should also carefully completed or submitted the
documents that helps to make the delivery process effective. But on the other side, if
there is any issue arises then cited firm should immediately eliminate differences between
the parties and after taking approval, the product should go for further level.
 Lastly, it is also recommended to the firm that all the certificates should be carefully
examined and both the parties should be agreed with the payment and transportation
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terms and condition, this will help to make the procedure of transportation more easier
and effective.
 Moreover, Woolworths can also uses automation as a business process software that
mainly provides timely updates regarding every movement of goods. It also saves amount
of time and money as well. Through the system, the manager of Woolworths can easily
determined every movement of a goods from dispatching to delivery. Hence, this helps to
make the process more effective and fast for both parties.
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