Case 1: Growing Demand for Total Logistics Management - Story of one of our valued customers
The acceleration of globalization has forced many business sectors to move offshore for lower production costs in order to stay competitive in the worldwide market. The ever-complex supply chain thus demands a more efficient logistics management. The following story from one of our valued customers has further illustrated this trend.
1. The Initiation:
One of the worldwide largest Taiwan based PC Motherboard manufacturers, (hereunder referred to as "the Company"), has recently shifted its production line to Suzhou, China to lower production costs.
2. The Needs:
Previously the Company's vendors had delivered its raw materials inventory separately to its factory through Shanghai port. The company therefore handled customs clearance each time as it replenished inventory. Since the number of raw materials for motherboard production exceeds more than 1,000 items, the Company had continuously endured repetitive and, at times, burdensome customs clearance procedures for inventory replenishment.
3. Dimerco's Total Logistics Management Solution:
Utilizing Dimerco Shanghai Waigaoqiao warehouse (DIL), the Company is able to execute Just-In-Time (JIT ) System supported by a number of its vendors. The customized services Dimerco's warehouse has provided include material kitting, goods consolidation and truck delivery whenever an order is placed. Most important of all, the Company needs to handle Customs clearance only ONCE for all materials from worldwide vendors to fulfill daily or routine production needs. The benefit of such logistics management includes:
The benefit of such logistics management includes:
- Reduction in Inventory Costs:
To concentrate on its core business, the Company executes the JIT system with the cooperation of Dimerco. As a result, the inventory carrying & holding costs has been reduced. - Procedure Simplification:
The complicated and repeated operating procedures regulated by PRC government have been simplified. - Mutual Communication:
Dimerco provides accurate inventory status reports for the Company and all its worldwide vendors. This Dimerco value-added service has not only enhanced mutual communications but also provided the opportunity for further strengthening the strategic partnerships between the Company and its vendors.
