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Scanwell Logistics(China) Co.,Ltd Shenzhen Branch Logistics Proposal for Warehouse Introduction July 2007.

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Presentation on theme: "Scanwell Logistics(China) Co.,Ltd Shenzhen Branch Logistics Proposal for Warehouse Introduction July 2007."— Presentation transcript:

1 Scanwell Logistics(China) Co.,Ltd Shenzhen Branch Logistics Proposal for Warehouse Introduction July 2007

2 Scanwell Logistics (China) Co., Ltd SZX Branch P.2 Shenzhen Logistics Service

3 Scanwell Logistics (China) Co., Ltd SZX Branch P.3 Why Choose Shenzhen  The 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

4 Scanwell Logistics (China) Co., Ltd SZX Branch P.4 Shenzhen Logistics Service Scope Different type of warehouse RDC function Import/Export consolidation program General storage Repacking/Picking/Sorting/Labeling/Simply assembly/OC inspection/Bar code Order Management/Warehouse Management/VMI Project program U-turn shipment to HK

5 Scanwell Logistics (China) Co., Ltd SZX Branch P.5 Concept of Regional Distribution Center (RDC) Transfers cargo handling and storage from destination to origin, which provides our clients with an origin based distribution center: 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. Reduce destination re-handling costs and minimize the utilization of their destination warehouses Destination DCs are over utilized and they need to relieve the overcapacity Operational costs for maintaining destination DCs are higher than that are at origin.

6 Scanwell Logistics (China) Co., Ltd SZX Branch P.6 Benefits 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 overcapacity 2.Reduce investment in destination DC network 3.Reduce 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 needed 6.Increased flexibility in the supply chain by storing cargoes at origin, thus delaying allocation and transport decisions until products are actually needed at destination 7.Increased 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 products 9.Decrease dependency on their existing distribution network at destination. 10.Increasing the opportunities for cross-dock, DC Bypass, Direct to Store programs

7 Scanwell Logistics (China) Co., Ltd SZX Branch P.7 Sample of Operations Shenzhen FTZ warehouse Receiving Quality Assurance Pick & Pack Import & Export Consolidation Other VAS Asia (South East) Customers Asia Manufacturer China Manufacturer

8 Scanwell Logistics (China) Co., Ltd SZX Branch P.8 Logistics Management

9 Scanwell Logistics (China) Co., Ltd SZX Branch P.9 Various Management Tools Customer Service Management Warehouse Management / VMI Reporting Management WMS

10 Scanwell Logistics (China) Co., Ltd SZX Branch P.10 Customer Service Management Reduce the possibility of mis-communication Reduce the complexity of communication channel Improve efficiency Staff with full knowledge on operations and customer’s requirement Substantial saving on long distance phone calls Fast reaction in ad-hoc requirement and increase flexibility 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:

11 Scanwell Logistics (China) Co., Ltd SZX Branch P.11 Customer Service Management Flow Scanwell Customer Mutual Communication 1Check with vendor for cargo readiness 2Booking procedure Cargo Readiness 1Receive PO summary Ordering Issues 1Provide shipping schedule 2Select transportation mode Transportation 1Process of repacking 2Provide lavatory level Warehouse operations 1 Respond to any abnormal circumstance Problem solving 1Co-ordinate with vendors on customs procedure 2Provide professional advice to streamline the operations Customs Issue

12 Scanwell Logistics (China) Co., Ltd SZX Branch P.12 Warehouse Management - Cargo In Warehouse Sample Vendor Place booking in advanced Inland Transportation Arrangement (Followed by customs declaration) Verification Four inspections (Quantity, Package, Variety & Quality) Storing Installations (Goods entering, Sorting, Labeling) A/C Settlement & Internal Management Respond relevant problems to customer (e.g. storage quantity, etc) Issuing data, Tracking & Trace reporting (Followed by File Saving)

13 Scanwell Logistics (China) Co., Ltd SZX Branch P.13 Warehouse Management Objective – 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 performance Three Critical Procedures - Cargo In Warehouse Cargo Out Warehouse Customs Declaration (Import/Export)

14 Scanwell Logistics (China) Co., Ltd SZX Branch P.14 Physical and Information Flow of VMI What is Vendor Managed Inventory Vendor 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 Decision Retailer Sales & Inventory Data VMI System

15 Scanwell Logistics (China) Co., Ltd SZX Branch P.15 Reporting Management Objectives Forecast Review Operations Cost Analysis Service Evaluation List of reports includes but not limited to the followings :

16 Scanwell Logistics (China) Co., Ltd SZX Branch P.16 KPI Report This report will cover below topics : 1Transit time Measure the transit time for inbound and outbound movement separately with total lead time for whole operation, and compare with our pre-determine figures. 2Booking lead time Reflect the duration of shipper to place booking to Scanwell and booking accuracy itself. 3Accuracy on billing / document Measure the accuracy of our invoice and document which is essential for the operation. 4Responsiveness Our reaction towards customer inquiry and the effectiveness on our solutions. 5Operation Analysis Lead 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. 6Improvement plan Advice 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 :

17 Scanwell Logistics (China) Co., Ltd SZX Branch P.17 Warehouse Management System There are five function modules : In Warehouse Query:Search any In Warehouse current or historic data Out Warehouse Query:Search any Out Warehouse current or historic data Inventory Query:Find your real time inventory File Download & Upload:You can upload or download some necessary documents or other files Change Password:Ensure security level Above three functions have the same interface shown as below.

18 Scanwell Logistics (China) Co., Ltd SZX Branch P.18 Query & Download & Upload files 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. Query

19 Scanwell Logistics (China) Co., Ltd SZX Branch P.19 Ordering 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

20 Scanwell Logistics (China) Co., Ltd SZX Branch P.20 EDI - 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.

21 Scanwell Logistics (China) Co., Ltd SZX Branch P.21 Features of Free Trade Zone in Shenzhen

22 Scanwell Logistics (China) Co., Ltd SZX Branch P.22 The Features of Shenzhen Futian Trade Zone Futian is one of three bonded areas in Shenzhen. Futian Free Trade Zone Characteristic : Bonded Area covers 1.35 square kilometers Focuses on developing high-tech industries and logistics Bonded Area has a special passage to Hong Kong Neighbors Guangzhou-Shenzhen Expressway Passageway No.1 is directly connected to Hong Kong via Lok Ma Chau Bridge 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.

23 Scanwell Logistics (China) Co., Ltd SZX Branch P.23 Distance Map of Shenzhen Free Trade Zone Warehouse Hong Kong Container Port Hong Kong International Airport Shenzhen Futian FTZ warehouse Guangzhou Airport Shenzhen Yantian FTZ warehouse Shenzhen Airport Shenzhen Yantian Container Port Shenzhen Shekou Container Port Shenzhen Chiwan Container Port

24 Scanwell Logistics (China) Co., Ltd SZX Branch P.24 Free trade zoneNon - Free trade zone Comparison between FTZ and Non-FTZ Taxation Export Processing Warehousing Exhibition "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." Margin 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 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. Imported 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. "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." 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. 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. 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.

25 Scanwell Logistics (China) Co., Ltd SZX Branch P.25 Introduction of Shenzhen Futian Free Trade Zone

26 Scanwell Logistics (China) Co., Ltd SZX Branch P.26 Location of Warehouse at Shenzhen Futian FTZ

27 Scanwell Logistics (China) Co., Ltd SZX Branch P.27 Location and facility Location Taohua Road, Futian Free Trade Zone, Shenzhen Multi-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 lifts 21 Loading/unloading berth Safety monitoring Full-auto fire sprinkling/alarm system 24-hr security guard CCTV monitoring Barcode identification ISO quality assurance system

28 Scanwell Logistics (China) Co., Ltd SZX Branch P.28 Material Handling Equipment Barcode Printer Electric Walkie Rider Mobile data Processor Electric Forklift Truck Order Picker

29 Scanwell Logistics (China) Co., Ltd SZX Branch P.29 Case Study Pick & Pack Project at Futian FTZ

30 Scanwell Logistics (China) Co., Ltd SZX Branch P.30 Case Studies - Futian FTZ A : General Information for EDC (Export Distribution Center) : Year around cargo Number of SKU: 100 SKU Number of CBM per month in currency : 600 CBM Vendor: Over 30 vendors location in PRD Shipment final destination: USA / EUROPE / FAR EAST Operations requirements: Cargo store in China VMI – monitor inventory level / arrange pick up from vendors / up-date inventory to customer by WMS Warehousing service including labeling / sorting / loading / QA Delivery / ship the cargo as per customer instruction by ocean or air B : General Information for Assembling : Seasonal Jun - Oct Number of SKU: 200 SKU Number of CBM of the project: 10,000 CBM Number of containers of the project : 150 FEU Vendor: Over 30 vendors location in PRD Shipment final destination: USA / EUROPE Operations requirements: Cargo store and assembling in China VMI – monitor inventory level / arrange pick up from vendors / up-date inventory to customer by WMS Warehousing service including sorting / pick and pack / QA / labeling / wrapping / palletizing / loading Delivery / ship the cargo as per customer instruction by ocean Project Summary

31 Scanwell Logistics (China) Co., Ltd SZX Branch P Case Studies - Photos of Operations Flow Finished part of display boxPlace the gift container onto bottomFinished gift container Place the gift onto display boxGift container finished for QCCover with carton box

32 Scanwell Logistics (China) Co., Ltd SZX Branch P Finished carton boxPrepare label for each carton Labeling & Shrink wrapping 89 To strengthen the carton box 1To strengthen the carton box 2 Case Studies - Photos of Operations Flow 2 7 Waiting for QC

33 Scanwell Logistics (China) Co., Ltd SZX Branch P Loading QCLoading complete with rope protection Delivery 1415 Loading in 45’ containerLoading into the container 13 Waiting for Loading Case Studies - Photos of Operations Flow 3

34 Scanwell Logistics(China) Co.,Ltd Shenzhen Branch Zhong Hang – Scanwell International Freight Agent Co. Ltd Shenzhen Branch Room 388, 3/F, Block 301,Tairan Industry Zone Chegongmiao,Futian District, Shenzhen, , PRC Tel : (86-755) Fax : (86-755)


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