How do you manage international logistics?

and what do you do if hardware fails after it’s already been deployed to the other side of the world?

International logistics is a very broad team. During our start-up phase we had to learn how the networks work with all electronic components. How the Chinese market works. What to do if you cannot buy a particular component in China? Where can you set up the supply chain? What are the rules of international logistics and what costs do you have to think about? Etc.

For example, I imported once in the beginning - I think in my first month - from Europe. I thought I would just give it a go, and then I encountered that I had to pay 30% in import taxes. So that was a big mistake. But we’ve learned how to better navigate supply chains and taxes now.

Another advantage that we have as part of the tax free zone here in Colombia is we have favorable contract conditions with a number of companies. For example with the shipping company DHL we can use the contract conditions of our group companies and that offers some benefits.

The repair part is very complex. You really have to think about it because a poultry scale, for example, weighs approximately 2.5 kg and sending it around the world costs a lot of money.

In most cases I would say repairing an electronic product already deployed to the US is almost more expensive than making another one and shipping that. That has to do with the high prices of just sending an equipment around through the different states in the US. Our approach is to return, repair, and re-ship the units with the highest cost. The others ones we send back to Colombia to maybe use some components but it’s not economically feasible to repair it and resend it.

So what we like to do is to prevent the need for repairs, that’s the key.