3PL Model
The following outline the main points and advantages of the most popular of the warehouse ‘models’
- Buyers’ Consolidation
Buyer’s Consolidation is where a warehouse is used to collect various orders from multiple manufacturers for a single buyer. The goods are stored for a very short amount of time and then loaded into containers / air handling units for export.
water currently runs many buyers’ consol programs for our overseas customers handling a wide range of commodities.
Advantages of Buyer's Consolidation:
i. Origin storage costs can be less than destination storage costs – if JIT (just in time) is employed by the buyer ii. Destination cost (both sorting + delivery cost) can be much reduced. iii. Customs declarations (and hence costs) are reduced as the number of shipments are reduced due to consolidation iv. Increased cash flow can be found as reduced order quantities can be sought rather than the old scenario of at least a full container being ordered. v. Faster speed to market as small orders are made and hence long manufacturing times are no longer dictating the supply chain. - D.C. Bypass
D.C. bypass is very similar to buyer’s consolidation, though with the added benefit of employing pick and pack at origin to allow direct to store or customer shipments – thereby bypassing the D.C. (distribution centre) at destination.
Common value added services for D.C. bypass includes sorting, labeling, customized packing, product differentiation.
Advantages of DC Bypass:
i. Reduction of inventory at destination distribution centre ii. Reduced risk of product damage due to decreased handling within the supply chain iii. Reduced transport (fuel) costs due to more ‘direct’ supply chain solution – also thereby reducing carbon footprint iv. Product can be customized to suit specific destination requirements – store specific v. Increased speed from source to shop floor, reduced cycle times and safety stocks can be decreased benefitting cash flow - Asian R.D.C.
An Asian Regional Distribution Centre (RDC) is the warehouse scenario for regional distribution of your products. Goods manufactured either locally or from overseas are stored in the RDC and delivered to countries around the Pacific Rim (for example) – hence your Asian hub.
Inventory transparency can be obtained through our WMS allowing overseas companies to ‘sell’ within the region without the need for a local office and staff.
One stop shop services allow seamless transition from the warehouse, to our freight forwarding team ensuring timely arrival across the region whether parcel size or full containers.
Many value added services are available for this warehouse model, for more information please contact us.
Advantages of Asian Regional Distribution Centre:
i. Products are closer to the customer (and possibly manufacturer) thereby reducing delivery upon order confirmation ii. Reduced freight costs compared to previous orders being fulfilled from EU or US RDC locations iii. Increased speed to market, in many cases sea freight from HKG can compete in time with deferred airfreight from EU and US iv. Closer location to manufacturer makes the RDC a good location for QC and possibly even RMA v. No need for local office and staff – online visibility offering all the information at your finger tips - Reverse Logistics
Reverse Logistics is the model that accommodates items that have entered the ‘market’ being returned, disposed or repaired as per the condition received, commodity type and expiry date etc.
Instead of setting up your own reverse logistics facility in Asia, water can provide a workforce and warehouse for your successful reuse and recycling programs or for products to re-enter the ‘market’.
- Multiple Country / City Consolidation
With water, Multi Country (or city) Consolidation (MCC) from various origins is possible, thus enabling lower shipping costs and timely delivery of goods in full container loads or a full batch to final destination. Using our various locations in China and employing inter-province trucking and coastal shipping we can consolidate multiple China origins within one location for on-forwarding globally, or in conjunction with an Asian RDC.
- Import Deconsolidation
Using our BLP locations we can deconsolidate import cargo just as easily as we consolidate cargo for export. Combine this with location distribution and multiple customers can be serviced to their door thus reducing the need for multiple LCL shipments.