Whether you’re sending products abroad or importing supplies overseas, it is normal to face certain shipping challenges.
One of those is the issue of damaged items. We often hear reports of goods getting damaged while being shipped to their destination. Ouch!
Today, you’ll learn how LEI codes can help you beat certain shipping challenges. Talk about finding solutions in unexpected places.
What are LEI Codes?
The Legal Entity Identifier (or LEI Number, for short) is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). At its core, the LEI code is a globally-accepted system of identification that makes it possible to discover vital information about businesses.
For example, say you want to transact with a foreign business you know nothing of. The LEI number database is a reliable directory to find out anything about the business. On the LEI Code database, you can find useful information such as businesses owned by the same individual, history of transactions, entity address, brand reliability, etc.
If you can’t find any reliable information about a business on the GLEIF LEI application database, it simply means that the business hasn’t done the needful to obtain LEI.
Anyways, we’re not here to give a lecture on LEI number. Rather, we want to look at ways an LEI Code can help with traditional shipping challenges.
How can LEI Help With Traditional Challenges?
- Challenge #1: Items damaged during shipping
To be fair, we can’t put all the blame for damaged items on shipping companies. The amount of ‘stress & turbulence’ that these items face before arriving at their destination is enough to cause a break or spoilage of a few fractions.
However, that’s still no excuse for losing a few bucks.
In some lucky cases, you may get a refund or replacement from the shipping company. And in some other cases, you may not.
In any case, your best bet is to ensure your products are tightly packed.
How can LEI help?
Besides proper packaging, obtaining an LEI code can also help keep your items safe during transport. How? You wonder.
Most shipping/logistics companies often ship items of different fragilities. Now, since they can’t easily tell the content of a shipment by looking at it, they rely on information provided on the packaging or forms filled. Unfortunately, this means they get to pack items that are not supposed to be together in one place.
With an LEI code acquisition, however, a shipping company agent can digitally check the scope of your business and guess the content of your shipment. That way, he can determine the safest place to put your item.
- Challenge #2: Excessive shipping costs
It is true you have to pay to ship your items from one place to another. Unfortunately, sometimes, shipping fees can become unreasonably high. As evident in one of PayPal’s recent reports, which revealed that 43% of shoppers abandoned their carts because of high shipping charges.
When shipping charges become a headache, what can you do?
A wise idea would be to find shipping providers offering bargain prices. Alternatively, you can try to obtain LEI.
How can LEI help?
You’ll be shocked to hear that certain businesses offer certain privileges to partners that have LEI codes. The reason is because they believe dealing with such partners is less ‘risky.’
If you’d like to enjoy exciting shipping discounts or waivers, especially when dealing with international providers, you may want to obtain LEI.
- Challenge #3: Lack of knowledge
Transporting products from one state to another in your country is not the same as ordering supplies from overseas.
Often, international trades come with several requirements you probably have never heard of. For example, did you know that shipping companies worldwide have voluntarily adopted the LEI, and now a lot of them assign the LEI of a company to its containers?
Yes, you read that well. Besides LEI, there are other requirements like custom paperwork, forms, carrier transfers, etc.
Unfortunately, not many business owners have knowledge about these things, which means that shipping of items may not be so easy for them.
How can LEI help?
Clearly, LEI won’t help with every aspect of this challenge. Either you outsource the procedure or get yourself familiar with all there’s to know about shipping items from or to that country.
But as far as the LEI parts go, you can make your business globally acceptable by submitting an LEI application today.
- Challenge #4: Shipping disruptions
A common theme of the pandemic was travel bans. We had them between states and between countries.
Imagine that you are expecting a shipping delivery from a country. Then suddenly your home country have reasons to place a travel ban on any human or shipment importation from that country. What happens to your delivery?
It becomes stuck on the other side of the border. Well, not exactly. What most people did during the pandemic was to first send their items to neighboring countries and then continue the transport from there.
That sounds like a great plan, indeed. But then, it creates other problems like having to prove your business legitimacy in these other countries.
How can LEI help?
The LEI Number is globally accepted, which means it’s applicable and tenable in the US, UK, Asia, Africa, Australia, and other parts of the world.
Even if you have to move your shipment through several countries, the presence of an LEI number on your cargo will prove the identity and legitimacy of your business anywhere it goes.
- Challenge #5: Lost items
In the same way your items could be damaged during shipping, it’s also possible that they could get lost. When that happens, the shipping company or carrier is usually liable.
How can LEI help?
For your sake and that of the shipping company, it’s advisable to obtain LEI for your business if you deal in international shipments. This is because LEI Number can make it easier for a shipping company to track and find lost items.
Remember that these companies usually handle tons of items. As such, when an item gets lost, it can feel like it’s fallen into a black hole.
With an LEI Code assigned to your items, however, the shipper can easily log in to their system to track or locate the whereabouts of the items. Simply put, LEI codes act like a tag on your cargo.
- Shipping hazardous materials
If you deal in hazardous materials like explosives, poisonous chemicals, or other sensitive products, your shipment may be subjected to extra ‘checks’ during shipping.
Usually, you may be asked to provide extra documentation, pay extra levies, or do other things not required of people shipping regular items.
In short, you may run into several unforeseen challenges.
How can LEI help?
As we’ve said multiple times in the course of this post, LEI is an ISO-certified business registration number. Having it is like registering your business with the international Standard Organization – a body respected worldwide.
Besides, having an LEI code ensures that anyone anywhere can access real-time information about the legitimacy of your business.
So, let’s say during the course of shipping your merchandise, you run into law enforcement agents who doubt your shipping intentions. You can simply implore them to look up your business name on the GLEIF LEI database, where they’ll find convincing facts that corroborate your story.