Expanding your business across borders is an exciting challenge. New markets, customers, and strategic alliances can transform your business, but they also require rigorous supply chain management. Have you ever wondered if your entire logistics process is truly under control? Auditing your international supply chain isn’t just a matter of legal compliance: it’s the key to sleeping soundly and protecting your brand’s reputation.
Why is it worth auditing your distribution chain?
International logistics is much more than moving goods from one country to another. Every step—from contract signing to final delivery—can hide risks, inefficiencies, or noncompliance that impact your results.
Benefits of an audit
- Detect costly errors early.
- Optimize costs and improve your customers’ experience.
- Comply with regulations and avoid penalties.
- Strengthen the trust of your international partners and clients.
Step 1: Contract and Incoterms Review
The first step is to carefully examine the sales contracts and ensure that the Incoterms chosen reflect the reality of your operations. Are the costs and risks clear? What happens if there is a delay or damage during transport? A well-designed contract is your best insurance against unforeseen events.
Step 2: Verification of Transport and Customs Documentation
A simple error in the commercial invoice, packing list, or customs declaration can stop your shipment at the border. Review each document, ensure the tariff classification is correct and that you comply with each country’s tax and customs requirements. Remember: documentation is your passport in international trade.
Step 3: Logistics and Physical Operations Analysis
Do you know exactly where each product is at all times? Evaluate transportation modes, warehouses, and traceability. If you work with sensitive products, such as food or medicine, ensure the cold chain is maintained throughout the entire journey. A failure here can translate into financial losses and end-customer dissatisfaction.
Step 4: Risk Assessment and Regulatory Compliance
International trade is fraught with risks: delays, damage, fraud, or penalties for violating local regulations. Identify critical points in your supply chain, verify compliance with all regulations (labeling, phytosanitary measures, border controls), and strengthen security, both physical and digital.
Step 5: Implementation of improvements and action plan
The audit doesn’t end with the diagnosis. Develop a clear action plan: review contracts, train your team on international regulations, implement tracking technologies, and assign those responsible for each improvement. Only then will you ensure that the changes are implemented and maintained over time.
Practical Example
Imagine a company that exports machinery to Latin America. After several delays and complaints, it decides to audit its distribution chain. It discovers that the problem lay in the lack of coordination between the customs broker and the carrier, and the absence of clear clauses in the contract regarding who would bear the costs in the event of an inspection. After reviewing the contracts and training the team, shipments are once again flowing smoothly, and customer satisfaction improves significantly.
Downloadable Checklist: Your Practical Roadmap
To make sure you don’t miss a single detail, we’ve prepared a downloadable checklist that summarizes each phase of the audit. Use it as a guide and ensure your international distribution chain is as robust as your project.
Frequently Asked Questions (FAQs)
How often should I audit my supply chain?
It’s recommended to do so at least once a year or whenever you change suppliers, markets, or relevant regulations.
What should I do if I detect a serious breach?
Act quickly: review the contract, gather evidence, and consult a specialist to assess legal and commercial options.
Is it worth investing in traceability technology?
Yes, investing in digital tracking (such as blockchain or IoT) reduces risks and improves transparency for customers and authorities.
Conclusion: Protect your business and gain peace of mind
Auditing your international distribution chain is a smart investment that helps you anticipate problems, optimize resources, and grow confidently. Don’t let an unexpected error slow your expansion: get your logistics under control and build a solid foundation to compete in the global market.
Download your checklist now and protect your business
Do you want to ensure the success of your international operations? Download our free checklist for auditing your international supply chain and start implementing these best practices today.
Downloadable checklist
✅ Checklist for auditing the international distribution chain Before shipping: Review and validate the international sales contract, ensuring it includes appropriate Incoterms and penalty clauses for non-compliance.
Confirm the transportation and insurance terms (full, extended, or basic coverage depending on the value and nature of the goods).
Verify essential documentation:
Commercial invoice
Packing list
Certificate of origin
Request pre-shipment inspection, if applicable (e.g., for food or sensitive products)
Confirm payment terms (e.g., letters of credit, advance payments, guarantees)
During transport: Track the shipment in real time using tracking technologies (GPS, IoT platforms).
Coordinate with the customs broker to anticipate requirements and documentation at destination.
Verify the status of the shipment: temperature conditions, packaging integrity, and security during transit.
Prepare transport documentation:
Bill of Lading (B/L) for ocean shipments
Air Waybill (AWB) for air shipments
CMR for land shipments
Multimodal document, if applicable
Upon arrival at destination: Review and validate received transport documents (B/L, AWB, CMR).
Manage customs clearance, including:
Import declaration
Presentation of sanitary or phytosanitary certificates, if applicable
Coordinate payment of taxes and duties (customs duties, VAT, other national taxes).
Obtain the import receipt for the release of the goods.
Plan internal transport to warehouses or final distribution points.
Verify the physical condition of the merchandise upon unloading (visual and documentary inspection).
Record the merchandise in the inventory system and proceed with quality control.
Storage and final distribution: Inspect the merchandise in the warehouse:
Match the invoice and packing list
Absence of damage or loss
Update inventory in the ERP system.
Prepare optimized routes for final distribution.
Confirm delivery times and conditions with customers or points of sale.
Bonus: Additional resources: Verify the use of updated Incoterms (2020).
Review legal compliance with EU and local regulations.
Recruit agents and advisors specialized in international trade.