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Customer Background
The customer is one of the largest decoration companies in the Netherlands, with a long-standing history and a primary market spanning Europe, the United States, and Canada. Their production factories are mainly located in China. The customer’s product range is extensive, with thousands of SKUs. In the European market, their products cover all categories of decorations, with a very high demand. In the United States and Canada, the customer primarily sells Christmas decorations and spring garden products, which have a high degree of seasonality. Products must be delivered within specific time windows; otherwise, they will lose their market value. Therefore, the timeliness of logistics and the complexity of SKU management are major challenges for the supply chain.
Customer Needs
The customer’s original logistics model involved consolidating products produced in China at a central warehouse in Europe, from where they were distributed to markets in Europe, the United States, and Canada.
The customer needed to shorten logistics times, simplify logistics processes, and improve supply chain efficiency. MOOV has warehouses at major ports across China and numerous successful cases of warehousing consolidation and distribution to various destinations. We provided the customer with a comparative analysis of bonded and non-bonded warehouses. Ultimately, the customer chose to use MOOV’s bonded warehouse in Ningbo. After sorting in China, products are distributed directly to B-end customer warehouses in the United States and Canada via MOOV’s sea and local trucking services.
Project Characteristics
- Time Efficiency: Once in the bonded warehouse, products are considered exported, significantly reducing customs clearance times.
- Tax Advantages: Factories can claim tax refunds in advance, maximizing cash flow.
- Protection of Commercial Information: Goods from the bonded warehouse are shipped under its name, protecting the brand’s supply chain information.
Efficient Warehousing and Sorting:
- Due to the seasonality of the products, the customer allocated a 20-day period for sorting at the warehouse. During this period, more than 2,000 SKUs and over 100 containers need to be sorted, requiring extremely high levels of warehouse turnover and operational efficiency. MOOV developed precise and efficient Standard Operating Procedures (SOP) to ensure high-quality, on-demand task completion. The simplified SOP workflow is shown in the diagram below:
- Products from over 30 factories in China are consolidated at the bonded warehouse, and then sorted into new pallets based on orders from customers in the United States and Canada. For high-value and fragile SKUs, the warehouse performs quality inspections as needed to ensure products reach customers in top condition, thereby enhancing customer satisfaction.
- The customer utilizes MOOV’s digital logistics software for comprehensive logistics management, achieving online coordination from the factory to the bonded warehouse and local distribution. This system enables timely task completion across different regions and stages, ensuring an efficient and smooth logistics process. Custom reports are provided to continually optimize management.