How to Effectively Manage Your IT Logistics

When purchasing equipment to support your team’s IT infrastructure, you’ll likely source hardware through channels like original equipment manufacturers (OEMs), distributors, value-added resellers, or IT resellers. 

However, acquiring the equipment is only part of the process. Shipping to its final destination presents its own set of challenges. Without careful planning, this stage can lead to inefficient and costly logistical processes. You might encounter issues such as compliance, taxes, duties, and diverse import requirements, which can lead to significant costs — sometimes hundreds of thousands or even millions of dollars in fees and missed opportunities. 

Key risks of inadequate international shipping management include:

• Inconsistent lead times: Shipments with high variance can disrupt coordination with engineers or IT specialists.

• Delayed shipments: These can result in missed opportunities and added costs.

• Unnecessary markups: Inefficient logistics can inflate costs.

• Excess duties and fees: Poor planning may result in unnecessary financial burdens.

• Missed tax reclaims: Failure to manage logistics properly can lead to losing out on reclaimable taxes.

• Administrative barriers: Lack of proper documentation can hinder decision-making and asset management.

In this post, we’ll explore how FGX can help you streamline IT logistics, resulting in significant cost savings and improved business outcomes. We’ll also guide you through evaluating whether you need a specialized IT logistics solution.

IT-Specific Logistics Companies vs. General Logistics Companies

In some cases, a general logistics supply chain might be the most efficient way to acquire and deliver your IT equipment. For example, using an IT-specific solution may not be necessary if you’re shipping:

• Domestically* 

• Low-quantities or low-value IT equipment (e.g., shipments valued at less than $2,500)

• Infrequently (fewer than 2–3 times a year)

*While our team at FGX specializes in global IT logistics, we also support domestic IT shipments. It’s worth noting that there are still key differences at the domestic level between how we ship IT equipment at FGX and how a courier company like FedEX and UPS handle their shipments. These differences include pre-shipment inspection processes, delivery methods, and the insurance coverage provided for your shipments. To learn more, check out our post on alternatives to FedEx and UPS.

When shipping IT equipment internationally, opting for an IT-specific logistics company offers several key benefits:

• Value density of IT equipment: IT hardware is often high-value, with shipments ranging from $70,000 to over $25 million. This makes any lost or damaged equipment a costly problem, especially since standard shipping services typically offer minimal insurance coverage.

• Impact on operating expenses: Beyond the high cost of the hardware itself, delays in transporting IT equipment can lead to increased operating expenses. For instance, if your servers bound for a data center in India are delayed, you may need to rent third-party equipment temporarily, resulting in higher operational costs.

• Complex customs clearance: International shipping, particularly for IT equipment, involves navigating complex customs regulations. These rules vary by country and depend on factors like the type of equipment, the origin, and the destination. They cover every aspect of the shipment — from the items listed on the bill of materials to packaging requirements and the designation of the importer of record (IOR). Note that general logistics providers often lack expertise in this area and outsource shipments to third parties, resulting in additional markups and a fragmented process where it’s unclear who is managing your shipment.

If you’d like to learn more about this topic, read our post on when to use a logistics company that specializes in IT.

How FGX Supports Global IT Logistics for Your Multinational Enterprise with Our Flagship Shipping Service

Often, multinational enterprise companies contact us because:

• Their VARs or IT resellers struggle to successfully ship IT equipment internationally.

• Their VARs attempted international shipping, but the goods got stuck in customs, or the shipment incurred unexpected fees and duties.

• They want to consolidate equipment from different manufacturers into one single shipment.

• They’re shipping used or out-of-package equipment that needs professional inspection, categorization, and packaging.

• They’ve been shipping internationally for a while but believe they aren’t getting the most optimized solution, often due to high markups and missed opportunities to reclaim taxes.

To help you better understand how FGX can optimize your IT shipments, we’ve outlined each step of our process below.

Step 1: Send Us Your Shipment Request

To begin, send us the details of your shipment, including the origin, destination, and bill of materials. You can start the process here. 

Once we receive your information, we’ll reach out to gather additional details, such as the goals of your project and your short-term and long-term IT equipment needs, including how the equipment will be used within your company.

This information allows us to provide the most cost-effective shipping solution. For example, if you have an eligible business entity in your target country, we might recommend listing that entity as the IOR while we handle all IOR duties on your behalf. This approach is a win-win: you won’t have to worry about preparing your shipment for import, and you’ll still be able to reclaim taxes on your shipment. You can read more about Importer of Record services here.

At this stage, we also ensure you’re using the correct information for your shipment, such as the most applicable HS codes for your equipment. Choosing the right HS code is complex, as these codes often change or apply to multiple products. Using the wrong HS code can lead to greater restrictions or higher duties.

This part of our process is unique in the industry — many other logistics providers simply accept the HS codes you provide, even if they’re not the most accurate or optimal.

Step 2: FGX Provides You with Optimized Shipping Options

Next, we provide you with optimized shipping options, each of which includes:

• Transparent pricing: You’ll receive a detailed, line-by-line breakdown of costs, so you know exactly what you’re paying for.

• Low-variance timelines: Thanks to our industry expertise and thorough pre-shipment process, we can provide you with a precise, forecasted timeline for your shipment’s arrival, typically varying by only a few days. In contrast, other providers, including general logistics companies and distributors, often offer high-variance timelines (e.g., “delivery within 3 to 6 months”) because they don’t account for factors like customs clearance times.

With transparent pricing and low-variance timelines, you can confidently decide whether FGX is the right choice for your shipping needs.

Step 3: FGX Performs a Feasibility Check

When you’re ready to ship your equipment, we conduct a Feasibility Check. This step ensures that your IT commodities are eligible for export and import before shipping. 

This process is unique to FGX, leveraging our IT-specific expertise to confirm compliance based on the specifics of your shipment.

In contrast, traditional international supply chains often proceed with your order without thorough checks, which can lead to issues if:

• You’re not using the most accurate HS codes.

• You’re not set up as the IOR.

• Your goods are brand-protected or unlikely to pass customs (such as shipping used equipment into India, which is notoriously challenging).

We view this approach as a risky business process for IT companies, as shipments that are inadequately prepared are likely to face delays, denials, or unexpectedly high fees and duties.

By verifying that your shipment will reach its destination before it even ships, you gain peace of mind and can confidently plan your business operations around the confirmed arrival time.

Step 4: Shipment Booking and Processing

When booking your shipment, we issue a tracking number and assign an FGX operations expert to oversee the process. From here, the process looks like this:

• The FGX Manifest Process

• Obtaining Documents

• Shipping Your Equipment

• Customs Clearance

The FGX Manifest Process

When feasible, we recommend sending your IT equipment to an FGX facility before export. This allows us to run the equipment through our manifest process:

• Detailed manifest review: We conduct a thorough breakdown of every product listed in your bill of materials. This includes inspecting every box, label, condition, and product marking.

• Proactive issue identification: By conducting our own manifest process, we can identify potential issues early—such as damaged goods, incorrect packaging, or discrepancies from the original listing. For example, if new equipment arrives in a scratched chassis (a common occurrence), we address it upfront to prevent costly delays, fines, or customs complications.

Obtaining Documents, Licenses, and Permits

We handle the procurement of all necessary documentation, licenses, and permits based on your bill of materials, shipment origin, and destination:

• Documentation management: Unlike traditional logistics companies that may rely on you to provide all necessary documents, we ensure that all required documentation is sourced and secured before shipping. This prevents delays and additional fees that arise from missing or incorrect paperwork.

• IT-specific guidance: We also assist customers who come to us with shipments already stuck in customs, offering IT-specific expertise to resolve issues efficiently.

Shipping Your Equipment

We ensure that your equipment is packed and shipped according to the customs requirements of your target country:

• Compliance with regulations: For instance, shipments to Brazil must be on phytosanitary-stamped pallets. We handle these specifics to comply with destination country regulations.

• Direct air freight: To avoid delays and risks associated with sea freight or hub-and-spoke systems (like the ones used by FedEx and DHL), we use direct air freight for 98% of our shipments. This ensures your items are transported swiftly and safely, minimizing damage or loss and providing a narrow, low-variance timeline.

Customs Clearance and Last Mile Delivery

When your shipment arrives at its destination, our customs clearance brokers help it navigate the customs clearance process:

• Regulatory compliance: We ensure that your shipment adheres to regulatory and compliance controls of the destination country. Our pre-shipment Feasibility Check helps eliminate surprises or unexpected delays.

• Proven success: With over a decade of experience and a 99.8% success rate in customs clearance, including challenging markets like Brazil and China, we handle the complexities before your shipment leaves our facility. 

• Final delivery: Once cleared, your items are delivered via a dedicated vehicle to their final destination.

Next Steps: Contacting FGX About Your IT Shipping Needs

International shipping for IT equipment is complex due to its high value and strict customs regulations. Even companies that manage to ship their IT hardware successfully often face inefficiencies such as: 

• High-variance timelines: Delays that stall and disrupt operations.

• Unnecessary markups and fees: Extra costs that could be avoided.

• Missed reclaimable taxes: Opportunities for cost recovery that are lost.

Many multinational enterprises trust FGX to provide a best-in-class, seamless global IT shipping experience. If you’re interested in optimizing your IT shipping strategy, please reach out to learn more.