CASE STUDY
FOOD

DISTRIBUTION CENTER MANAGEMENT

CUSTOMER

  • A famous agriculture cooperative in US with more than 700 member growers around the world.
  • 9 plants globally, 8 in US, 1 in Chile
  • Opened 1st T-mall store in China in 2014, and listed the 2nd best seller of import foods in 2015
  • No legal entity in China

CHALLENGE

  • 10 months shelf life period for most of the products, and major customers reject shipments if the product shelf life close to 50%
  • E-commerce (65% of total volume) highly dependent on promotion periods and logistics/in-process delays could significantly affect volumes
  • Labeling and re-packing by different distributors exposes the customer to increased risks.
  • Burden of servicing unique requirements such as labeling, date code management, inventory rotation falls on their manufacturing locations
  • The declaration errors are quite expensive to key customers

WE PROVIDE

  • Served as a trading agent to support the customer's sales in China market, which provided flexible operations to fulfill different customer demand through both 3PL and 4PL model
  • System customization for inventory management, shelf life management, documentation and reporting.
  • HS Code pre-classification for new items import to China market to ensure the correctness of the declaration
  • Quality inspection upon receiving and shipping to ensure any variance can be found in the first place

ACCOMPLISHMENTS

  • Conducted 40% freight savings for customers by arranging shipment/order consolidation
  • Directly addressing order processing and customer service complexity – serve 30+ customers and distributors in the China market with average 50 orders per month
  • Minimization of brand risks from incorrect and inconsistent declaration and Chinese labeling
  • Isolating manufacturing locations from complexity by facilitating secondary packaging change (re-pack) in a manner compliant to customer’s needs
  • Average 10 days lead-time from customer’s order release to shipment outbound (CIQ certificate received)
  • Inventory located 6-8 weeks closer to market in a readily sellable format – improved end-customers’ order cycles, inventory turns, and forecast accuracy