How to Export from India: A Complete Beginner’s Guide

Published on May 26, 2025

• 10 min read

If you’ve ever imagined your products reaching shelves and homes across the world, you’re not alone. India, with its growing reputation as a manufacturing powerhouse, offers countless opportunities to take your business global. But here’s the catch: exporting isn’t just about packing and shipping your goods. It’s a whirlwind of regulations, paperwork, market research, and logistics that can leave even the most determined entrepreneurs feeling stuck.

Sounds complicated? Don’t worry; we’ve got your back. Whether you’re curious about how to export goods from India, need to understand the step-by-step process of how to export products from India, or want practical tips on how to export your product from India, this guide will make it simple.

From getting your business export-ready to handling logistics and documentation, we’ll walk you through everything you need to know to take that leap into the global marketplace. By the end of this blog, you’ll be equipped with the knowledge and confidence to turn your export dreams into reality. Let’s get started!

Table Of Contents

Why is Exporting a Golden Opportunity for Indian Businesses?
A Step-by-Step Guide on How to Export from India
Why Choose WareIQ for Your Export Logistics Needs?
Summing Up
FAQs

Why is Exporting a Golden Opportunity for Indian Businesses?

India’s export industry is booming, making it a prime time for businesses to go global. As the world’s 18th-largest exporter, India contributes significantly to global trade with a diverse portfolio of products like textiles, machinery, pharmaceuticals, IT services, and spices. In 2023 alone, India’s exports surpassed $770 billion, a testament to the country’s growing footprint in international markets.

Here’s why exporting is a game-changer for Indian businesses:

Tap into global demand: Markets like the U.S., Europe, and Southeast Asia are constantly seeking quality Indian products such as textiles, organic food, and IT services. By exporting, you can reach millions of customers worldwide who are eager for what India has to offer.
Diversify your income streams: Relying solely on domestic demand can be risky. Exporting allows you to cushion your business against local market fluctuations and expand your revenue streams.
Leverage government incentives: The Indian government actively supports exporters through initiatives like the Merchandise Exports from India Scheme (MEIS) and Remission of Duties and Taxes on Export Products (RoDTEP), reducing costs and boosting profitability.

However, exporting isn’t without challenges. From selecting the right product and identifying target markets to understanding shipping regulations, there’s plenty to plan and execute. But with proper guidance, the rewards are well worth the effort.

A Step-by-Step Guide on How to Export from India

Exporting is one of the most effective ways to expand your business and tap into international markets. However, it can be daunting without the right guidance. This step-by-step guide will help you understand everything you need to know to start your export journey from India.

Step 1: Lay the Groundwork for Your Export Business

Before you can export anything, you need to set a solid foundation for your business. Here’s how:

1.1 Register Your Business

Start by establishing your legal entity—whether it’s a sole proprietorship, partnership, or private limited company. To access benefits like subsidies and loans, register your business under the Micro, Small, and Medium Enterprises (MSME) scheme.

1.2 Open a Current Bank Account

A current bank account is essential for handling foreign exchange (FOREX) transactions. Ensure that your bank is authorised to process international payments.

1.3 Obtain a Permanent Account Number (PAN)

A PAN card is mandatory for conducting financial transactions, filing taxes, and fulfilling compliance requirements. Without a PAN, you cannot export.

1.4 Secure an Import-Export Code (IEC)

The IEC is your golden ticket to international trade. Issued by the Directorate General of Foreign Trade (DGFT), this 10-digit number is required for customs clearance, shipping, and importing/exporting goods. You can easily apply for it online.

1.5 Get a Registration cum Membership Certificate (RCMC)

To avail of government export incentives under the Foreign Trade Policy (FTP), you’ll need an RCMC, issued by Export Promotion Councils or Commodity Boards relevant to your product.

1.6 Understand Export Incentive Schemes

Take advantage of export promotion schemes like the RoDTEP (Remission of Duties and Taxes on Export Products) or the Advance Authorization Scheme, which reduce duties and improve profitability.

1.7 Research Your Market

Study the demand for your product in international markets. For instance, Indian textiles are in high demand in the U.S., while spices perform well in Europe. Use platforms like IndianTradePortal.in for market research.

Step 2: Prepare Your Product for Export

Once your business is ready, focus on preparing your product for global markets.

2.1 Choose the Right Product

Select a product that has strong demand, less competition, and good profit margins in your target market. Examples include pharmaceuticals, textiles, spices, and IT services.

2.2 Set Competitive Pricing

Price your product carefully by factoring in production costs, freight charges, customs duties, and profit margins. Research competitors to ensure your pricing stays competitive.

2.3 Package, Label, and Mark Your Goods

Ensure your product meets global packaging and labelling standards. For example, food exports may need FDA compliance for the U.S., while electronic goods may require CE certification for Europe. Sustainable packaging is also becoming increasingly popular.

2.4 Conduct Product Compliance Checks

Verify whether your product adheres to the regulatory standards of your target market. This could include phytosanitary certifications for agricultural goods or quality inspections for industrial products.

2.5 Insure Your Shipment

Export insurance protects your business from risks like buyer defaults or political instability. The Export Credit Guarantee Corporation (ECGC) provides coverage tailored to exporters.

Step 3: Find Buyers for Your Product

Finding the right buyers is crucial for a successful export business.

Participate in Trade Fairs: Attend international expos and trade fairs to showcase your products and connect with buyers.
Leverage B2B Platforms: Use platforms like Alibaba, Exporters India, and IndiaMART to network with international clients.
Explore Amazon Global Selling: Amazon’s platform enables Indian sellers to reach customers in over 18 global markets, with logistical support built-in.
Use Social Media Marketing: Platforms like LinkedIn, Facebook, and Instagram are excellent for building awareness and connecting with potential buyers.
Approach Export Promotion Councils: Get buyer leads and guidance from councils like the Spices Board of India or the Engineering Export Promotion Council (EEPC).

Step 4: Navigate Export Documentation

Documentation is one of the most critical steps in exporting. Here’s what you’ll need:

Commercial Invoice: Details the transaction between you and the buyer.
Packing List: Specifies shipment details, including weight and dimensions.
Bill of Lading: Acts as a receipt and contract between the exporter and carrier.
Certificate of Origin: Confirms the goods were manufactured in India.
Letter of Credit (LC): Guarantees payment upon submission of shipping documents.

Pro Tip: Use platforms like Export Navigator or ICEGATE to streamline documentation and file export declarations online.

Step 5: Handle Shipping and Customs

Shipping and customs clearance are the backbone of any export business.

5.1 Choose the Right Logistics Partner

Logistics is the most crucial aspect of exporting, and choosing a reliable partner ensures your shipments reach their destination on time and in good condition. Modern platforms like WareIQ offer integrated warehousing, fulfilment, and shipping solutions tailored to exporters. With WareIQ, you get real-time tracking, order consolidation, and competitive freight rates, streamlining the entire logistics process.

5.2 Clear Customs

Customs clearance involves submitting documentation, paying duties, and ensuring compliance. Hiring a Customs House Agent (CHA) can simplify this process and help you avoid delays.

5.3 Understand Incoterms

Familiarise yourself with Incoterms (International Commercial Terms), such as FOB (Free On Board) or CIF (Cost, Insurance, and Freight), which define who is responsible for shipping costs, insurance, and delivery risks.

5.4 Track Your Shipment

Real-time tracking, offered by platforms like WareIQ, ensures complete visibility for you and your buyers, providing peace of mind throughout the shipping process.

Step 6: Get Paid

Once your shipment is delivered, it’s time to get paid.

Common Payment Methods:

Advance Payment: Receive payment upfront before shipment.
Letter of Credit (LC): Provides payment upon submitting shipping documents.
Open Account: Payment is made after delivery (recommended for trusted buyers).

Monitor Exchange Rates:

Fluctuating currency rates can impact your earnings. Use tools like forward contracts to lock in favourable exchange rates.

Export Factoring Services:

If you’re worried about delayed payments, consider export factoring, where you sell your receivables to a third party for quick access to funds.

Why Choose WareIQ for Your Export Logistics Needs?

When it comes to managing the logistics and fulfilment complexities of exporting from India, WareIQ is a game-changing solution for businesses. With its tech-driven, multi-channel fulfilment and shipping platform, WareIQ ensures your export process is streamlined, efficient, and scalable. Here’s how WareIQ can simplify your export journey:

1. Pan-India Fulfillment Network

WareIQ operates a robust network of fulfilment centres across 12+ cities and provides last-mile delivery to over 27,000 pin codes. This allows businesses to position inventory closer to demand hubs, ensuring faster delivery and reduced transit costs for export shipments.

2. Multi-Channel Fulfillment Integration

Exporters often deal with multiple marketplaces and sales platforms. WareIQ offers plug-and-play integrations with marketplaces like Amazon, Flipkart, and Myntra, as well as D2C platforms such as Shopify and Magento. This ensures seamless management of inventory and orders across all channels, saving time and effort.

3. AI-Driven Inventory Management

WareIQ’s Inventory LogIQ uses AI-powered insights to minimise stockouts and automate replenishment. This ensures that you always have the right inventory levels to meet export demands, avoiding unnecessary delays.

4. Tech-Enabled Logistics and Returns

WareIQ leverages advanced technology to handle logistics challenges like damaged goods or returns. Their tech-enabled returns QC solution minimises marketplace claims rejections and ensures your products meet international compliance standards.

5. Seller Support Services

Exporters can also benefit from WareIQ’s additional services, such as dedicated account management, assistance with GST registration, and ensuring compliance with marketplace-specific requirements like APOB/PPOB registrations.

By partnering with WareIQ, exporters can streamline their fulfilment and shipping operations, reduce delays, and focus on growing their global business. Whether you’re shipping to the U.S., Europe, or Southeast Asia, WareIQ ensures your logistics process is hassle-free.

Summing Up

Exporting from India is a golden opportunity to expand your business globally, tap into diverse markets, and increase revenue streams. With the right preparation—such as securing essential documents, researching your target market, and choosing a reliable logistics partner—you can navigate the complexities of international trade with ease.

Logistics and fulfilment are at the heart of export success, and platforms like WareIQ can simplify this process. With a robust pan-India network, AI-driven inventory management, and multi-channel integration, WareIQ ensures your products reach global buyers efficiently and reliably. Additionally, its tech-enabled returns management and seller support services make it an invaluable partner for exporters.

Related read – Export From India to UK

FAQs

What is the cost of obtaining an Import-Export Code (IEC)?

The total cost of IEC registration is ₹1499, including a government fee of ₹500 and a professional fee of ₹999.

Can I export without an RCMC?

No, an RCMC is mandatory to avail of benefits under the Foreign Trade Policy.

Is GST registration required for exporting?

GST registration is not mandatory for obtaining an IEC but may be needed depending on your product category.

How do I choose a logistics partner?

Compare shipping costs, delivery times, and additional services like insurance and tracking before choosing a partner.

Supercharge your fulfilment with WareIQ now, contact our team.

Author

Mariyam Jameela

Mariyam Jameela works as a content writer at WareIQ. With a proven track record of working with renowned brands such as GO Digit, Urban Ladder, Juspay, Hong's Kitchen, and many more. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers

Read all of Mariyam Jameela's Posts

Bill of Entry Status: How to Check and What It Means in Customs?

Have you ever ordered something internationally and found yourself wondering what happens once it crosses the border? Customs procedures can feel like an endless maze, and one term that tends to pop up often in this context is "bill of entry status." But what exactly does it mean, and why is it such a big deal? Whether you're an importer, a business owner managing logistics, or just someone fascinated by the inner workings of customs, this guide is here to clear up the mystery for you. Think of the bill of entry as more than just a piece of paperwork; it’s the golden ticket that ensures goods can cross borders legally and without unnecessary delays. But what happens when the process stalls or you're not sure where things stand? That’s when knowing how to check the bill of entry status becomes a game-changer. In this blog, we’re going to break down everything you need to know about a bill of entry: what it is, why the status matters, and, most importantly, how to track it like a pro using tools like ICEGATE. Ready to get a clear understanding of customs clearance? Let’s jump in and figure it out together. What is a Bill of Entry? Simply put, a bill of entry (BOE) is a legal document submitted to Customs authorities when goods are imported into a country. It contains detailed information about the shipment, such as: The value of goods. The description of goods. The applicable customs duty. In the world of logistics, the BOE is essential for clearing goods through customs. Without it, your imported products might sit in a warehouse indefinitely or incur hefty fines. Did you know that filing a bill of entry allows importers to claim Input Tax Credit (ITC) under GST? That’s another reason why keeping an eye on the bill of entry status is crucial. Why is it Crucial to Monitor the Bill of Entry Status? International shipments can be tricky to manage, and even minor delays can lead to higher costs, dissatisfied customers, and logistical headaches. This makes keeping an eye on your bill of entry status a critical task for businesses involved in imports. It’s more than just tracking a document – it’s about ensuring the entire process runs smoothly and without unnecessary setbacks. Smooth Customs Clearance: Monitoring your bill of entry status helps ensure your goods pass through customs without issues caused by incomplete or incorrect paperwork. Avoiding delays here saves you from paying extra storage charges or facing penalties. Accurate Duty and Tax Calculations: The bill of entry is crucial for determining customs duties, Integrated GST (IGST), and any compensation cess. Staying updated ensures you avoid calculation errors and pay the correct taxes for your shipment. Compliance with Regulations: Monitoring your BOE status through platforms like ICEGATE helps you meet import regulations, avoid missed deadlines, and prevent penalties caused by incomplete filings or late submissions. Efficient Logistics Management: A clear and up-to-date BOE status allows you to coordinate better with logistics providers, accurately predict delivery schedules, and manage your inventory more effectively, ensuring your supply chain remains uninterrupted. By using tools like the ICEGATE bill of entry status tracker, you can stay informed at every step of the process, avoid unnecessary delays, and improve the efficiency of your import operations. Being proactive is not just a smart practice—it’s the key to running smooth and cost-effective international trade. How to Check Bill of Entry Status Online? Thanks to the ICEGATE portal (Indian Customs Electronic Gateway), tracking your bill of entry status is now a simple and straightforward process. ICEGATE is the official platform for customs and GST-related activities in India, providing importers with easy access to critical information about their shipments. Whether you’re new to this or just need clarity, here’s the exact process to follow. Step-by-Step Guide to Track Bill of Entry Status via ICEGATE Search for the ICEGATE Portal Open your browser and search for “ICEGATE Portal” on Google, or directly visit ICEGATE’s website. Access the ‘Bill of Entry’ Tracking Section Once on the homepage, navigate to the “BE Tracking” section. You may find it under “Enquiry” or “Tracking Tools.” Log In (If Required) Some users, such as importers or authorised agents, might need to log in with their credentials to access specific information. Enter the Required Details To fetch your BOE status, provide the following information: Bill of Entry Number: A unique 13-digit identifier for your shipment’s BOE. Port Code: Identifies the customs location where the BOE was processed. BOE Filing Date: The date the BOE was submitted. Submit and Check the Status Hit the "Search" button, and the portal will display your BOE status. The information includes: Payment confirmation and duty status. Customs clearance progress. Shipment value, importer details, and channel number. Government agency approvals and document validity. Resolve Issues or Get Real-Time Updates If the status seems outdated or unclear, use the “Query ICEGATE” feature to fetch real-time updates directly from the customs database. Key Components of a Bill of Entry Want to decode the information on a BOE? Here are the critical elements you’ll find: Importer’s Details: Name, address, and Import Export Code (IEC). Exporter’s Information: Name and origin of the shipment. Goods Description: Quantity, monetary value, and tariff classification. Port Code: Identifies the customs location. Duties and Taxes: Includes IGST, customs duty, and cess. Every detail on the BOE has a purpose, so ensure its accuracy during filing. Mistakes can lead to delays or penalties. Common Issues with Bill of Entry and How to Resolve Them IssueDescriptionResolutionBOE Status Not UpdatedThe status may not show the latest updates due to technical glitches.Use the “Query ICEGATE” feature to fetch real-time data from the ICEGATE portal.Mismatch in DetailsBOE details don’t align with your shipment or supporting documents.Contact your Clearing House Agent (CHA) or the customs department to rectify the discrepancies.Delayed ClearanceShipment clearance is delayed due to unpaid duties or missing documents.Ensure all duties and taxes are paid promptly and submit complete documentation for processing. This table highlights the most common BOE issues and provides actionable steps to resolve them efficiently, ensuring smoother customs clearance. Related article - Difference Between Excise Duty and Custom Duty How Can WareIQ Help Simplify Your Import and Fulfillment Process? When managing imports and navigating customs processes like tracking your bill of entry status, efficient logistics and inventory management are critical to avoiding delays and ensuring smooth operations. This is where WareIQ steps in as a reliable partner for eCommerce businesses. WareIQ is a Y-Combinator-backed, full-stack fulfilment and shipping platform designed to meet the needs of modern eCommerce operations. Here’s how WareIQ can optimise your supply chain: Nationwide Fulfillment Network: WareIQ operates fulfilment centres across 12+ cities, ensuring inventory is strategically positioned close to your customers for faster delivery. It supports multi-channel fulfilment across platforms like Amazon, Flipkart, Shopify, and others. Advanced Inventory Management: With AI-powered inventory planning, WareIQ helps prevent stockouts and automates replenishment to ensure uninterrupted supply chain operations. Smart Shipping Options: WareIQ offers delivery to 27,000+ pin codes through a multi-carrier engine, providing same-day or next-day delivery options. Features like branded tracking pages and accurate delivery timelines improve customer experience. Compliance Assistance: WareIQ simplifies GST registrations, APOB/PPOB setups, and ensures marketplace-compliant operations, easing the burden of customs and compliance management. Partnering with WareIQ means fewer delays, better efficiency, and more satisfied customers. Manage your import and fulfilment processes effortlessly with WareIQ Suggested read - Shipping Bill vs Bill of Lading: Key Differences Explained Wrapping Up Understanding and tracking the bill of entry status is a crucial part of ensuring seamless customs clearance and smooth logistics operations. From preventing delays to avoiding fines, staying updated on the BOE status can save businesses from unnecessary hassles. Platforms like ICEGATE make it easier to monitor shipments, while solutions like WareIQ further enhance logistics efficiency with advanced fulfilment and shipping support. By leveraging the tools and knowledge outlined in this blog, importers can navigate the complexities of customs with ease and focus on growing their business. Whether you’re an eCommerce seller or a business owner managing global trade, staying proactive with your logistics and customs processes will ensure success in the long run. You may also like to read - How to Check Your Shipping Bill Status Online in India? Frequently Asked Questions (FAQs) What is the SEZ bill of entry status?The SEZ bill of entry status refers to the tracking of customs clearance for goods being imported into or exported from Special Economic Zones (SEZs). It provides updates on document validation, customs duties, and clearance progress specific to SEZ regulations.What happens if my SEZ bill of entry status is not updated?If the SEZ bill of entry status is not updated, it could be due to system delays or incomplete filings. Use the "Query ICEGATE" feature for real-time updates or contact your CHA for assistance.What is the ICEGATE portal, and how does it help with tracking the bill of entry status?ICEGATE (Indian Customs Electronic Gateway) is the official platform for customs and GST-related activities in India. It allows importers to track their bill of entry status, view payment confirmations, check customs clearance updates, and access other shipment-related information.Can I check the status of the bill of entry without a clearing house agent (CHA)?Yes, you can track the status yourself through the ICEGATE portal if you have the required details like the Bill of Entry number, Port Code, and Date of Filing. However, a CHA can assist with resolving any issues or discrepancies in the process.

June 17, 2025

Shipping Bill vs Bill of Lading: Key Differences Explained

When it comes to international shipping, several documents must be considered. These documents are of great significance, as they contain information about shipments. Some of the documents that stand out for their importance include shipping bills and bills of lading. To a common man, both documents seem similar; however, they are quite distinct in terms of their importance in the logistics chain. Businesses involved in the shipping industry must understand the key differences between Shipping Bill vs Bill of Lading. Additionally, considering that in June 2022, approximately 2.1% of the 45 million bills were made digitally, it highlights how the shipping industry is transitioning to digital documents, replacing traditional paperwork such as the shipping bill and bills of lading; it thus becomes necessary to be aware of various documents and their usage. In this article, we will understand what is a shipping bill, what is a bill of lading and what are the differences between Shipping Bill and Bill of Lading. What is a Shipping Bill? One of the primary documents required by the customs authority during the clearance of goods is the shipping bill. The shipping bill contains detailed information about the goods that are being exported or imported. Details on a shipping bill include the following aspects: The complete description of the good, such as the type, value and the quantity. It also contains detailed information about the exporter and importer, including their names, numbers, and addresses. It also contains the HS code, which is the Harmonised System code for classifying the goods. The shipping bill also has details about the port for loading, as well as the destination. It specifies the exact location from which the goods are being shipped and to which location they are being shipped. Shipping bills also include export taxes, which apply to the goods. What is a Bill of Lading? The bill of lading is a document that is legalised, and it is a necessary requirement for every shipper. It is issued by the carrier to the shipper, thereby acknowledging the receipt of goods for shipment. A bill of lading serves several purposes. Purposes served by a bill of lading include: It confirms that the carrier had successfully received the shipment of goods. A bill of lading also outlines the terms and conditions in detail under which the goods are shipped. A bill of lading necessarily contains a document of title. It represents the ownership of the goods. The document title can be used to transfer ownership by endorsement. Shipping Bill Vs Bill of Lading: Key Differences When the international shipping industry is considered, the shipping bill is quite different from the bill of lading. The differences between a shipping bill and a bill of lading are explained below in detail: AspectShipping BillBill of LadingType of documentA shipping bill is a legal document that is required for customs clearance.On the contrary, a bill of lading is a legal document that is used by shippers or carriers.Main PurposeThe primary purpose of a shipping bill is to obtain customs clearance and permission for export.The primary reason why a bill of lading is issued is for the acknowledgement of goods and terms and conditions of a shipment.OwnershipA shipping bill does not represent ownership.A bill of lading does represent ownership and can also be transferred.Authorities involvedAuthorities involved in verification or issuance are customs authorities.The bill of lading is governed by maritime laws and does not involve customs authorities.Mode of generationA shipping bill is generated by authorities such as ICEGATE in India and is generated electronically.A bill of lading can be generated electronically or manually. It is usually generated by the shipping line.Requirement of signaturesA shipping bill may require signatures from customs, CHA, or even the exporter.A bill of lading mandatorily requires a signature from the carrier.Customs requirementA shipping bill is an essential document needed for customs clearance.A bill of lading is not needed for customs clearance; however, it is needed for cargo delivery.Retention periodThe retention period of a shipping bill as per legal or compliance norms is for 5 to 7 years.A bill of lading must be preserved for dispute handling and record keeping, as it is required for cargo release.AmendmentsAmendments to a shipping bill can be made before the departure of cargo or before customs clearance.Amendments to a bill of lading are difficult if the cargo is already shipped out.JurisdictionA shipping bill falls under export regulations or customs clearance in a country.A bill of lading falls under maritime or contractual laws.Related documentsDocuments which are related to a shipping bill include certificate of origin, LUT (for exports), packing list and invoice.Documents related to a bill of lading include a delivery order, letter of credit or freight invoice. Get Seamless Documentation With Shipping Solutions From WareIQ WareIQ’s smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times. Our solution offers the following capabilities: Multi-carrier engine enabling fast deliveries across 24,000+ pin codes Control Tower & automated workflows to minimise NDR & RTOs Same/Next-day delivery courier options Seamless Integration with your WMS, ERPs and Storefronts Shipping Badges to display precise Estimated Delivery Dates (EDD) Custom branded tracking pages and notifications to enhance customer experience Suggested read- How to check Bill of Entry Status Conclusion A bill of lading and a shipping bill are two essential documents in international trade. Hence, it is necessary to understand both the documents and their differences as well. A shipping bill ensures smooth customs clearance, as it serves as a formal permission document, which is essential. On the other hand, a bill of lading is like a contractual pass that is issued by the carrier. Understanding the nuances of Shipping Bill vs Bill of Lading is necessary not only for compliance but also for seamless and efficient logistics management. It is also required to protect the cargo being shipped, maintain healthy cash flows, and obtain timely clearances. Being unaware of the significance and differences between these documents can lead to monetary penalties, delays, and even the seizure of shipments. Related read - How to Check Your Shipping Bill Status Online in India? FAQs About Shipping Bill vs Bill of Lading Who issues the shipping bill?A shipping bill is a document generated electronically by either the exporter or their authorised agent. It is usually generated through the ICEGATE portal in India.Is it necessary to have a shipping bill generated for every export?Yes, a shipping bill is a necessary document required for customs clearance on all shipments exported from India.Is a bill of lading similar to a sea waybill?No, a bill of lading is different from a sea waybill. A bill of lading is a document that essentially represents ownership of goods. On the other hand, a sea waybill is a non-negotiable document and does not serve as a document of title.Will there be any complications if there is a discrepancy found in a shipping bill?If there are discrepancies in a shipping bill, it can cause various problems, such as delayed customs clearance processes and potential penalties and fines.

June 16, 2025

Sourcing vs Procurement: Understanding Key Differences in the Supply Chain

Running a business in India, whether it is a small workshop in Coimbatore or a large factory in Gurgaon, often feels like juggling a dozen tasks at once. One moment, you are chasing customer orders, and the next, you are scrambling to secure raw materials. In the midst of this chaos, two terms frequently pop up: sourcing and procurement. They sound similar, but mixing them up is like confusing a recipe’s ingredients with the cooking process. Understanding the difference between Sourcing vs Procurement can transform how you manage your supply chain, saving you time, money, and plenty of stress. In this blog, I will break down what sourcing and procurement mean, highlight their roles in the supply chain, and share practical tips for Indian businesses. Whether you are sourcing cotton for a textile unit in Tiruppur or procuring electronics for a store in Delhi, this guide will help you navigate the process with confidence. Let us get started! What Is Sourcing in Procurement? Sourcing is the groundwork of your supply chain. It is about finding the right suppliers who can provide the goods or services your business needs at the right price and quality. Imagine you are a furniture maker in Jodhpur looking for high-quality teak. Sourcing involves researching suppliers, comparing their offerings, and building relationships to ensure a steady supply of wood that meets your standards. In procurement, sourcing is a strategic process. It focuses on identifying vendors, negotiating contracts, and setting up a reliable supply network. For example, a spice exporter in Kochi might source turmeric from farmers in Tamil Nadu, evaluating them based on quality, cost, and delivery reliability. The goal is to create a robust supplier base that supports your business in the long run. Key Aspects of Sourcing Supplier Research: Identifying potential vendors through market analysis and referrals. Vendor Evaluation: Assessing suppliers based on quality, pricing, and reliability. Contract Negotiation: Securing favourable terms, such as bulk discounts or flexible delivery schedules. Relationship Building: Establishing trust with suppliers for consistent collaboration. What Is Procurement in Supply Chain Management? Procurement is the bigger picture. It covers the entire process of acquiring goods or services, from spotting the need to paying the supplier. While sourcing is a part of procurement, the latter goes further, managing everything from purchase orders to delivery tracking. In India’s complex supply chain, where delays due to festivals or customs can throw a spanner in the works, procurement keeps things on track. For instance, picture a Mumbai-based retailer stocking up on festive decorations. Procurement involves not only sourcing reliable suppliers for lights and ornaments but also placing orders, ensuring timely delivery, checking quality, and settling invoices. It is about making sure your business has what it needs, when it needs it, without breaking the bank. Key Aspects of Procurement Need Assessment: Determining what goods or services are required to meet business goals. Order Placement: Issuing purchase orders and coordinating with suppliers. Delivery Management: Tracking shipments and verifying compliance with contract terms. Supplier Oversight: Monitoring vendor performance and maintaining relationships. Sourcing vs Procurement: Key Differences Sourcing and procurement work hand in hand, but they serve distinct purposes. Here is a clear comparison to help you see the difference: AspectSourcingProcurementDefinitionIdentifying and selecting suppliers for goods or services.The full process of acquiring goods or services, including sourcing.FocusFinding the right suppliers (the “who”).Managing the acquisition process (the “what” and “how”).ScopeA strategic subset of procurement, focused on supplier relationships.A broader process, covering sourcing, purchasing, and logistics.TimingOccurs before purchasing to establish supply channels.Spans activities before, during, and after purchasing.GoalsBuild cost-effective and resilient supply chains.Ensure timely delivery of quality goods at optimal costs.ActivitiesMarket research, supplier vetting, negotiation, contract signing.Sourcing, ordering, delivery tracking, payment, performance reviews. Procurement vs. Purchasing: Clearing the Confusion Another term that often confuses is purchasing. While it is part of procurement, purchasing is narrower, focusing solely on the transactional act of buying goods or services. It involves placing orders and making payments but lacks the strategic depth of procurement, such as supplier selection or long-term planning. For example, a Hyderabad startup buying office furniture from a local vendor is purchasing. However, if they are also researching suppliers, negotiating bulk deals, and ensuring timely delivery, that is procurement. Purchasing is about completing the transaction; procurement is about managing the entire process. Why These Differences Matter for Indian Businesses? In India, where supply chains can be as unpredictable as monsoon rains, understanding sourcing and procurement is crucial. Here is why: Cost Efficiency: Smart sourcing helps you find affordable suppliers, which is vital in a market where margins are tight. Procurement ensures you avoid costly mistakes like overordering or delayed deliveries. Supply Chain Stability: With challenges like infrastructure bottlenecks or regulatory complexities, sourcing builds a diverse supplier network while procurement keeps operations smooth. Local Advantage: Sourcing from nearby suppliers, such as leather vendors in Kanpur, cuts lead times and supports initiatives like “Make in India.” Procurement ensures compliance with GST and other regulations. Growth Potential: Clear sourcing and procurement processes allow businesses to scale, whether you are a small retailer in Kolkata or a growing exporter in Ahmedabad. An Example of Sourcing and Procurement Let us say you own a bakery chain in Bengaluru, and you need flour for your signature bread. Here is how sourcing and procurement come into play: Sourcing: You research wheat flour suppliers, shortlist a mill in Punjab for its quality and price, and negotiate a contract for monthly deliveries. You also check their sustainability practices to align with your brand. Procurement: You place an order for 1,000 kilograms of flour, track the shipment to your bakery, verify the flour’s quality, and process the payment. If the delivery is late, you coordinate with the supplier to resolve it. This example shows how sourcing secures the supplier, while procurement ensures the materials arrive and are used effectively. Which Comes First: Sourcing or Procurement? Sourcing usually happens first. You need to find and contract suppliers (sourcing) before you can order goods and manage deliveries (procurement). However, the two are interconnected. Procurement relies on sourcing to create a reliable supplier base, while sourcing uses procurement data, like supplier performance metrics, to refine vendor choices. Strategic Sourcing vs. Procurement Strategy A sourcing strategy is about building a strong supply chain. It involves long-term planning, such as diversifying suppliers to reduce risks or prioritising local vendors to save costs. For example, an Indian electronics manufacturer might source components from multiple vendors to avoid supply disruptions. A procurement strategy is broader, aiming to optimise the entire acquisition process. It includes sourcing but also focuses on streamlining orders, cutting lead times, and ensuring compliance. For instance, the same manufacturer might use a procurement strategy that automates purchase orders and integrates with GST portals for seamless tax filing. Practical Tips for Sourcing and Procurement in India To master sourcing and procurement, try these tips tailored for Indian businesses: Source Locally: Work with regional suppliers, such as textile mills in Surat, to reduce delivery times and support local economies. Embrace Technology: Use procurement software to automate orders, track shipments, and analyse supplier performance, saving time and reducing errors. Build Trust: Foster strong supplier relationships through clear communication and fair deals, a cornerstone of India’s business culture. Ensure Compliance: Align procurement with GST and import-export rules to avoid penalties, especially for cross-border sourcing. Review Suppliers: Regularly assess vendors based on quality, timeliness, and cost to keep your sourcing strategy sharp. Suggested - A Definitive Guide on How to Source Products for Your eCommerce Business in 2025 Facilitate Your Supply Chain with WareIQ’s Tech-Driven Solutions Navigating sourcing and procurement in India’s complex supply chain can feel like a full-time job. That is where WareIQ, a Y Combinator-backed e-commerce fulfilment platform, comes in, offering smart solutions to make your life easier. Whether you are sourcing raw materials or procuring goods for retail, WareIQ helps you manage inventory and deliveries with ease, letting you focus on growing your business. WareIQ provides: Nationwide Fulfilment Network: Store inventory in fulfilment centres across more than 12 cities, enabling fast deliveries to over 27,000 pin codes, compliant with Seller Flex and FAssured standards. AI-Driven Inventory Management: Use Inventory LogIQ to place stock strategically, avoid stockouts, and align with your procurement plans. Seamless Integration: Connect with D2C platforms (Shopify, WooCommerce) and marketplaces (Amazon, Flipkart) for centralised order and inventory management. Efficient Returns Handling: Manage returns with high-definition media evidence to minimise claim rejections, keeping procurement smooth. Regulatory Support: Get assistance with GST registration, catalogue listings, and compliance, simplifying your procurement process. By combining WareIQ’s solutions with effective sourcing and procurement, Indian businesses can optimise their supply chain, reduce costs, and deliver faster, whether in Pune, Chennai, or beyond. Summing Up Sourcing and procurement are like two sides of a coin, each essential to a thriving supply chain. Sourcing builds the foundation by finding reliable suppliers, while procurement ensures goods arrive on time and within budget. For Indian businesses, mastering these processes is key to staying competitive in a fast-moving market. By understanding the difference between sourcing and procurement, you can make informed decisions, cut costs, and build a supply chain that withstands India’s unique challenges. With partners like WareIQ, you can take efficiency to the next level, ensuring every order is fulfilled seamlessly and every customer leaves happy. So, go ahead—source smartly, procure wisely, and watch your business soar! Frequently Asked Questions on Sourcing vs Procurement What is the difference between procurement and sourcing?Sourcing involves finding and selecting suppliers, while procurement is the broader process of acquiring goods or services, including sourcing, purchasing, and delivery management.Which comes first: sourcing or procurement?Sourcing comes first, as it identifies and contracts suppliers before procurement handles ordering and delivery.What is the difference between sourcing and procurement strategy?A sourcing strategy focuses on creating a cost-effective supplier network, while a procurement strategy optimises the entire acquisition process, including purchasing and compliance.What is an example of sourcing and procurement?Sourcing is selecting a steel supplier for a construction firm in Mumbai, while procurement includes ordering the steel, tracking its delivery, and processing payment.

June 13, 2025