VMI operation and Value-Added Services in Bonded zone

Company H is an American publisher. It orders notebooks from four factories in South China, and sells them to Japan, Korea and some American and European countries.Product package needs to be changed based on the destinations before shipping.Previously, the four suppliers ship their products to the U.S., where products were stored and package changes completed before products were shipped to their destinations.This process produced high transportation, warehousing and labor costs.

With Hercules’ solution, all of these South China suppliers ship the goods to Futian Bonded area.Hercules handles the storage management including sorting, coding and changing package based on Company H’s needs. Then goods shipped to destinations.The use of bonded warehouse and mainland workers reduces the cost and shortens the shipping distance.A quality control function was established onsite to report any quality issues enabling the return of problem goods locally to further reduce costs.

Operational Process Illustration

Confirm the quantity of the goods and date of shipping

Dispatch vehicle orders tracking information provided

Track the time for each key step during the shipping day

Induct supplier’s information to BWNS to generate warehousing order

Confirm processing needs, export goods quantities and shipping date with Company H

Induct needs to system to generate shipping plans

Finish processing work and books shipping lines

Additional communication work includes:

Monitoring of prioritized issues as specified in the contract.

Timely communication with Company H and its suppliers

Proactive discussions with the project team to ensure SOP followed up

Evaluate cost structure and timely updates to the pricing process

Continuously monitor the project plan and roll out