3Why Choose ShenzhenThe terminals of Yantian, Shekou & Chiwan around Shenzhen Economic Zone have strategic location, which emerge as China’s most efficient and cost-effective transportation hub;Near by both Asian regions (like Hong Kong, Singapore, etc) and mainland of Southern China, so that to act a significant role for International Trade to China (e.g. information exchange; import/export; taxation, etc);Special Economy Zone (SEZ) set by China government and the increasing spending power of the consumers both creates mature and open trade environment to the logistics industry in Shenzhen;This city enjoys convenient transport routes with good air, rail and road links to most major China cities.Free Trade Zone also established at Shenzhen
4Shenzhen Logistics Service Scope Different type of warehouseRDC functionImport/Export consolidation programGeneral storageRepacking/Picking/Sorting/Labeling/Simply assembly/OC inspection/Bar codeOrder Management/Warehouse Management/VMIProject programU-turn shipment to HK
5Concept of Regional Distribution Center (RDC) Transfers cargo handling and storage from destination to origin, which provides our clients with an origin based distribution center:Reduce destination re-handling costs and minimize the utilization of their destination warehousesDestination DCs are over utilized and they need to relieve the overcapacityOperational costs for maintaining destination DCs are higher than that are at origin.Take advantage of greater operational efficiency by performing the majority of cargo handling at origin, close to the manufacturing source, as well as at reduced costs.
6Benefits of Regional Distribution Center (RDC) 1. Reduce overall costs by minimizing costly warehouse and labor costs at destination, as well as minimizing demurrage due to destination DC overcapacity2. Reduce investment in destination DC networkReduce overall cost of goods.4. Lower inventory levels at destination DCs as products are stored at origin and shipped as per clients’ request when products are needed6. Increased flexibility in the supply chain by storing cargoes at origin, thus delaying allocation and transport decisions until products are actually needed at destinationIncreased options for additional solution development, such as direct to store, DC bypass, quality inspection, or other VAS.8. Faster time to market by eliminating steps in the supply chain, such as delays at destination, and providing more flexibility in reallocating and rerouting productsDecrease dependency on their existing distribution network at destination.Increasing the opportunities for cross-dock, DC Bypass, Direct to Store programs
9Various Management Tools Customer Service ManagementWarehouse Management / VMIReporting ManagementWMS
10Customer Service Management Management Team :Provide professional advise and tailor made package to customer.Ensure high level of dedication and performance.Single Contact Window :Simplify the complexity of customer contacting and necessary for logistics project.Advantages:Reduce the possibility of mis-communicationReduce the complexity of communication channelImprove efficiencyStaff with full knowledge on operations and customer’s requirementSubstantial saving on long distance phone callsFast reaction in ad-hoc requirement and increase flexibility
11Customer Service Management Flow Ordering Issues1 Receive PO summaryCustomerCargo Readiness1 Check with vendor for cargo readiness2 Booking procedureMutualCommunicationScanwellTransportation1 Provide shipping schedule2 Select transportation modeWarehouseoperations1 Process of repacking2 Provide lavatory levelProblem solving1 Respond to any abnormal circumstanceCustoms Issue1 Co-ordinate with vendors on customs procedure2 Provide professional advice to streamline the operations
12Warehouse Management - Cargo In Warehouse Sample Vendor Place booking in advancedInland Transportation Arrangement(Followed by customs declaration)VerificationWarehouse Management - Cargo In Warehouse SampleFour inspections(Quantity, Package, Variety & Quality)Storing Installations (Goods entering, Sorting, Labeling)A/C Settlement & Internal ManagementRespond relevant problems to customer(e.g. storage quantity, etc)Issuing data, Tracking & Trace reporting(Followed by File Saving)
13Three Critical Procedures - Warehouse ManagementObjective –Effective distribution system should not be designed to hold inventory for an excessive length of time. The purpose of ware house management is ensure cargo entering, storage & existing from Scanwell warehouse accurately and timely to achieve both effective and efficient operation performanceThree Critical Procedures -Cargo In WarehouseCargo Out WarehouseCustoms Declaration (Import/Export)
14Physical and Information Flow of VMI What is Vendor Managed InventoryVendor Managed Inventory(VMI) is a process by which supplier is responsible for retailer’s inventory level. Replenishment decisions are made by supplier based on retailer’s stock-on-hand and sales data.The VMI technique enables both parties to reduce its inventory level significantly and thereby lower operation cost.Manufacturer Replenishment DecisionRetailer Sales & Inventory DataVMI System
15List of reports includes but not limited to the followings : Reporting ManagementObjectivesForecastReview OperationsCost AnalysisService EvaluationList of reports includes but not limited to the followings :
16KPI Report This report will cover below topics : Sample of report : 1 Transit timeMeasure the transit time for inbound and outbound movement separately with total lead time for whole operation, and compare with our pre-determine figures.2 Booking lead timeReflect the duration of shipper to place booking to Scanwell and booking accuracy itself.3 Accuracy on billing / documentMeasure the accuracy of our invoice and document which is essential for the operation.4 ResponsivenessOur reaction towards customer inquiry and the effectiveness on our solutions.5 Operation AnalysisLead time of pick and pack operation, which include per manpower productivity, per hour productivity and time consumption on each PO based on different repacking requirement.6 Improvement planAdvice solutions to customer, mainly focus on how to save cost, shorten the lead time and improve efficiency. Provide a hassle fee environment to customer.Sample of report :
17Warehouse Management System There are five function modules :In Warehouse Query : Search any In Warehouse current or historic dataOut Warehouse Query : Search any Out Warehouse current or historic dataInventory Query : Find your real time inventoryFile Download & Upload : You can upload or download some necessary documents or other filesChange Password : Ensure security levelAbove three functions have the same interface shown as below.
18Query & Download & Upload files In this module, you can upload or download some necessary files. When you upload files, you can control which company has the right to download it. Only the file owner or administrator is authorized to delete the file.
19Ordering and Exporting Each time you change the ordering field, all the query results will be ordered automatically.If you click “Export Excel”, the query result will be exported to your computer with the default name: Scanwell-In_Warehouse.xls. Re-naming the file is also allowed
20EDI - Information Technology Supporting Scanwell is committed to servicing the evolving IT based logistics requirements of our corporate clients. To optimize our technology component, we have taken the approach of providing "Best of Breed" information by implementing an effective EDI service with our clients.
22The Features of Shenzhen Futian Trade Zone Futian is one of three bonded areas in Shenzhen.Features:Practice bonded customs supervision and control system.Foreign-invested trading companies can establish and conduct bonded warehousing and exhibition business.Self-use equipment of the enterprises in these bonded areas is tax-free.Futian Free Trade Zone Characteristic :Bonded Area covers 1.35 square kilometersFocuses on developing high-tech industries and logisticsBonded Area has a special passage to Hong KongNeighbors Guangzhou-Shenzhen ExpresswayPassageway No.1 is directly connected to Hong Kong via Lok Ma Chau Bridge
23Distance Map of Shenzhen Free Trade Zone Warehouse Guangzhou AirportShenzhen AirportShenzhen Shekou Container PortShenzhen Chiwan Container PortShenzhen Futian FTZ warehouseShenzhen Yantian FTZ warehouseShenzhen Yantian Container PortHong Kong International AirportHong Kong Container Port
24Comparison between FTZ and Non-FTZ Free trade zoneNon - Free trade zoneTaxation"The machinery, equipment, construction materials, office articles and supervision equipment transported from abroad to the free trade zone for self-use by the administrative organs, enterprises in the zone, and imported processing materials, raw materials, parts and components, fuels, packing materials, and transit goods stored in warehouse are exempted from customs duties, import linked value-added tax and consumption tax.Transaction within the zone and export are exempted from VAT.""Duties and import licenses are required for the imported construction materials, manufacturing equipment, components and office articles forself-use by the enterprises.All transactions must pay VAT."Export ProcessingMargin account scheme is not required for the imported processing materials for self-use by the enterprises in the zone.Enterprises in the zone can freely process the exported goods, except those restricted by the state's export quota. Meanwhile, enterprises within the zone may entrust factories outside the zone to process their exported products after approval.The machinery, equipments, construction materials, office articles and supervision equipments transported from abroad to the free trade zone for self-use by the enterprises in the zone,and imported processing materials, raw material, parts and components, fuels, packing materials are exempted from customs duties, import linked value-added tax and consumption tax(Automobile excluded)Manufacturing companies whose materials are imported may sell their products to domestic market after application approved and paying duties and VAT imposed.Except the bonded factories with customs supervision, the margin account scheme is required for the imported processing materials.Duties are required for the imported machinery, components and office articles for self-use by the enterprises, Only those foreign enterprises encouraged by the state can import self-use facilities, components in a certain amount without dutied imposed.WarehousingExcept the bonded factories with customs supervision, the margin account scheme is required for the imported processing materials.Duties are required for the imported machinery, components and office articles for selr-use by the enterprises, Only those foreign enterprises encouraged by the state can import self-use facilities, components in a certain amount without dutied imposed.Ordinary trading goods and imported goods restricted by government are not allowed to store in the bonded warehouse.The maximum of storage period of goods in bonded warehouse is one year.Customs supervision fee is required.ExhibitionImported goods exhibited in the zone are regarded as bonded goods under supervision of the customs. A Convenient procedure is applied to the exhibition, which includes no deposit for import duties and no deadline for exhibition. Exhibited goods only need to be registered with customs.Bonded vehicles exhibition is permitted in Futian Free Trade Zone.Declaration forms are required for the exhibited goods.Enterprise shall handle import procedure with import license and hand in deposit Goods.shall be shipped abroad before the expiry date.
27Location and facility Location Taohua Road, Futian Free Trade Zone, ShenzhenMulti-storey warehouses, steel structural flattop warehouses, air-conditioned warehouses and other various bonded and common warehouses, with total warehousing area at approximately 30,000 sq.m.4 Mitsubishi 3T cargo lifts21 Loading/unloading berthSafety monitoringFull-auto fire sprinkling/alarm system24-hr security guardCCTV monitoringBarcode identificationISO quality assurance system
28Material Handling Equipment Electric Walkie RiderOrder PickerBarcode PrinterElectric Forklift TruckMobile data Processor
29Pick & Pack Project at Futian FTZ Case StudyPick & Pack Project at Futian FTZ
30Case Studies - Futian FTZ Project SummaryA : General Information for EDC (Export Distribution Center) : Year around cargoNumber of SKU : 100 SKUNumber of CBM per month in currency : 600 CBMVendor : Over 30 vendors location in PRDShipment final destination : USA / EUROPE / FAR EASTOperations requirements:Cargo store in ChinaVMI – monitor inventory level / arrange pick up from vendors / up-date inventory to customer by WMSWarehousing service including labeling / sorting / loading / QADelivery / ship the cargo as per customer instruction by ocean or airB : General Information for Assembling : Seasonal Jun - OctNumber of SKU : 200 SKUNumber of CBM of the project : 10,000 CBMNumber of containers of the project : 150 FEUVendor : Over 30 vendors location in PRDShipment final destination : USA / EUROPEOperations requirements:Cargo store and assembling in ChinaVMI – monitor inventory level / arrange pick up from vendors / up-date inventory to customer by WMSWarehousing service including sorting / pick and pack / QA / labeling / wrapping / palletizing / loadingDelivery / ship the cargo as per customer instruction by ocean
31Case Studies - Photos of Operations Flow 1 23Finished part of display boxPlace the gift container onto bottomFinished gift container456Place the gift onto display boxGift container finished for QCCover with carton box
32Case Studies - Photos of Operations Flow 2 789Waiting for QCTo strengthen the carton box 1To strengthen the carton box 2101112Finished carton boxPrepare label for each cartonLabeling & Shrink wrapping
33Case Studies - Photos of Operations Flow 3 131415Waiting for LoadingLoading in 45’ containerLoading into the container161718Loading QCLoading complete with rope protectionDelivery
34Thank You !Zhong Hang – Scanwell International Freight Agent Co. Ltd Shenzhen BranchRoom 388, 3/F, Block 301,Tairan Industry Zone Chegongmiao,Futian District,Shenzhen, , PRCTel : (86-755)Fax : (86-755)