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Instance IX: a new choice for supply chain core companies


Background of user: company S is a large joint venture specializing in the production of mobile communication products. The industry characteristics and production methods determine the limited purchase amount of spare parts for each batch of materials. Bonded and general trade are needed for entering in when purchasing materials. Most of the customer's suppliers are overseas with a long execution cycle. The customer faces problems of inconvenient logistics and high logistics costs;


Solutions: East Changer establishes VMI HUB for company S in Bonded Logistics Center. 150 domestic and foreign suppliers of company S send materials to VMI HUB. East Changer is responsible for unified receiving and inventory management. East Changer provides integrated logistics services such as sorting, packaging, loading, customs declaration and inspection, and then distributes them to the production plants in batches or uniformly according to company S’s daily production order plan;


Value of bonded VMI to users: achieve non-core business outsourcing, reduce management cost, achieve zero inventory production, strengthen market resilience, achieve total cost leadership, and improve competitiveness;


Value of bonded VMI to suppliers: According to the monthly/quarterly purchase order of company S, supplier delivers goods to VMI HUB warehouse in batches to reduce the comprehensive cost of supplier logistics. Materials bonded import and general trade import methods can be provided according to instructions to meet different trade demands.