Why American companies choose to set up the transit warehouse in mainland China?
Negotiable /Kilogram
Min.Order:1 Kilogram
Dongtai(Shenzhen) International Logistics Co.,LTD
What are the advantages of setting up the warehouse in Shenzhen China for thecompanies from countries like America, Canada, Singapore?
1, For the logistics costs:
Reducing the high shipping fee caused by thefrequent deliveries in small lot size.
For example: Our company has 10 to 30 clients inChina. They have different needs because of the different production scheduleand ability. Client A needs about 2 tons supply per month, client B, 7 tons pertwo months, client C, 8 tons per month, while client D, 5 tons every quarter. Thiskind of situation is often a huge headache for the company. Under the traditionalsupply mode, we will arrange delivery according to the customer order. Then wehave to deliver frequently in small lot size because of the irregular deliverytime. As this delivery way results in a high freight charge, we have toincrease the price. As a result, sometimes we almost lose the Chinese clientsfor the price.
Then we set up a warehouse in Hong Kong to reducethe high shipping cost result from frequent deliveries in small lot size. Butthe cost is also much higher than we expected. The high rental of warehouse,high loading and unloading charge, and high personnel cost in Hong Kong. What’s more,the cargos have to be transported to the customers from the warehouse in HongKong by China-Hong Kong trucks (trucks with the license plate of China and HongKong). There will be a lot of money spent on the transportation and customsdeclaration. In addition, the transportation course and customs declaration arebroken down to carry on.
So, is there a place or area providing the sameservices as Hong Kong without the disadvantages? Or in other words, if we canfind another place to set up a warehouse, this place should be equivalentin functions to Hong Kong, but the efficiency of distribution and customs declarationis higher than that in Hong Kong, while the total cost is much lower than inHong Kong.
We couldchoose the bonded warehouse of Dongtai International Logistics Company Ltd as our overseas warehouse in Shenzhen, China. The advantages are listed following.First reason is the 1/3 rental of the warehouse in Hong Kong. Second, it is ina bonded zone, and equivalent in functions to Hong Kong. Last one is the highefficiency in customs entry-exit. As a supplier, what we should do is to make aprediction about market share and production sales in China in the next one ora half year, then deliver all the production to the warehouse of DongtaiLogistics in Shenzhen Export Processing Zone in China. The cargos can transitto the warehouse from Hong Kong, or from the port like Yantian Port.
When wereceived the order of Chinese customers, we can send a shipment notice toDongtai Logistics. Then Dongtai will arrange delivery to the domestic customersaccording to our packing list and other shipment data. But please remember,because the goods are in the customs supervision area---the bonded area, whenthe goods are delivered to the customer from the warehouse, the importer isexpected to provide Dongtai with the imported information of the product inorder to complete the customs clearance.
Dongtai(Shehnzhen) InternationalLogistics Company Limited provide about 12,000 square meters of bondedwarehouse in Shenzhen Export Processing Zone. Parts of the warehouses are separate.The warehouse is equipped with 6 goods lifts and 7 warehouse keepers. What’smore, the transportation department is responsible for the domestic delivery;the main area coversHong Kong and the Pearl River Delta. Besides,Dongtai set up the customs broker with 14 staff so as to meet the needs ofcustoms declaration. The customer service part, office part and outdoor servicepart joint seamless to achieve "0 accident" in customs declaration.
More details please contact:
Mr. Kion Fan
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