Holding inventory at origin allows inventory to be held back and delivered “just in time” as required. This reduces the storage need and cost at destination and also increases the ability to optimize inventory at destination distribution centres. Warehousing at origin also allows value added functions such as store ready consolidation, vendor consolidation and kitting/promotional pack-ups.
Store Ready Consolidation
Cargo from multiple suppliers is received into a warehouse at origin, consolidated and then packed in store ready shipments (store ready containers, pallets or cartons). Cargo is then exported and shipped to cross dock facilities in the destination country. On arrival the containers are de-stuffed and the store ready shipments are shipped direct to store, avoiding the need for put away, storage, pick, pack, dispatch through a local warehouse.
For info on a real life store ready consolidation project click here.
Benefits:
Cost reduction.
Improved container utilization. Able to ship cargo from multiple suppliers in same container.
Reduction in the need for LCL shipments.
Inventory optimisation. Just in time deliveries.
Reduce the need for linehaul between local distribution centres.
Increase speed to market.
The size of the prize is large. Many are utilizing this technology to create market-leading advantage. Others are missing out because:
They don’t have the knowledge to implement
They don’t have the origin resources to control
We specialize in providing the knowledge and origin resources to enable successful implementation of store-ready consolidation.
Provide advisory on program establishment
Educate suppliers of inbound requirement
Coordinate inbound orders to ensure compliance with requirements.
QC check on inbound orders
Manage logistics providers to ensure compliance with agreed operating procedures.
Review and recommend continuous improvement
We have a network of qualified, best practice providers and we have the experience and expertise in establishing and managing store ready consolidation programs in Asia.
Shipment Consolidation
Consolidating multiple suppliers into single shipments can be a powerful tool for cost reduction and simplifying business process.
We assist clients establish shipment consolidation whereby products sourced from multiple factories are consolidated in a central warehouse and exported together in the same container(s) with a single exporter and a single customs clearance upon arrival into entry port. This service is performed in a non-bonded warehouse (outside of free trade zones) using a qualified trading company.
Benefits:
Reduced shipping costs from increased container utilization and increased number of FCL shipments vs LCL shipments.
Simpler business process from less suppliers to manage, less exports and less accounts to pay.
Cost reduction from having the freedom to direct source from as many factories as possible to get best price within China and Taiwan while still optimizing container utilization / minimizing sea freight costs.
Kitting and Promotional Pack-Ups
Creating unique combinations of products manufactured in different locations, can create point of difference that competitors will struggle to duplicate.
We assist clients establish kitting, assembly and promotional pack up solutions in Asia. For a fixed cost per unit, components manufactured by various factories (according to client requirement) can be delivered to a pre-qualified packing line. Packing is arranged and finished goods are exported according to client requirement.
This service can be performed within a bonded facility or within facility of a pre-qualified exporter.