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With our well-established infrastructures, almost 20 years of experience and the steady alliance body with other service providers, we commit to provide professional solutions that meet specific requirements of each individual company.
The diagram below illustrates the difference of the integrated 3rd Party Service model compare to the traditional proprietary operation model.



Manufacture

Bonded channel is an effective solution to lower logistics cost and simplify management complexity for foreign companies to establish assembly lines and material processing manufactures in China to support global market.
The bonded channel is valuable for both manufactures locate inside or outside of the boned zones, such as FTZ, EPZ or CBZ. Foreign investors are willing to set up manufactures in China because it has large consumer base, preferential support from government, up and downstream industry cluster and inexpensive labor and land. However, much assemble components or production materials still need to be imported from oversea. Therefore, these companies inevitably need to deal with the following problems:

• How to obtain import permits and other approval documents
• How to import the materials into China
• How to deal with the tariff and value-added tax (VAT)
• How to store and manage imported materials
• How to export finished products to other countries or sell to China market directly

HMG bonded channel solutions help manufactures to reduce their logistics and operations cost. HMG can help these companies to:

• Avoid investment on infrastructures such as warehouse, management systems and other facilities.
• Be able to focus on core-businesses by outsourcing non-core businesses such as warehouse management and delivery.
• Ensure they can legally enjoy the benefits they should receive on the issues of customs duty, value-added tax and stocking period.
• Have an efficient channel to deliver finished products into China or export to other counties.



Marketing

China is emerging as an economic powerhouse. Many foreign investors have recognized the hidden potential of Chinese large consumer bases. At the same time, they also realize the strategic importance of penetrating the China market early. Therefore, a successfully executed marketing plan is critical for these companies to develop customer base in this unfamiliar market and straight for great success.

Executing a marketing plan can involve great amount of financial resources. Therefore, foreign companies need to have a channel to allow them to avoid unnecessary expenses including custom tariff. Moreover, Chinese business environment has its own unique characteristics that are different from other countries. The followings are typical problems foreign companies may encounter:

• How to import demo and testing units into China and export them back to oversea
• How to obtain and collect necessary documents and approvals required by China customs
• How to handle transportation and delivery for road shows
• How to coordinate and monitor the whole process

HMG's bonded channel can help these companies to reduce the logistics cost involved in marketing activities and solve difficult issues involved in import and export operations:

• Legally avoid or reduce tariff charge on materials used for marketing
• Legally avoid or reduce tariff charge on demo or testing units that will be export back to oversea
• Provide nationwide domestic delivery and transportation



Sales

Having an effective sales fulfillment channel is important to satisfy customer and develop new customer base. Companies sell products in China usually need to have effective solutions for the following issues:

• How to import product into China
• Where to setup distribution centers
• How to deliver products to distributors and end-users

HMG can enhance the competitive advantages of these companies by providing them bonded fulfillment channel. HMG has a bonded distribution center in the Shanghai Waigaoqiao Free Trade Zone. The bonded distribution center (DC) allows manufactories to store their products in China without paying tariff until they are delivered. Manufactures can practically integrate this DC into their global supply networks. Moreover, the DC can minimize the risk of paying unnecessary tariff if the purchase order is canceled. Besides providing DC, HMG can coordinate delivery to all regions in China. Therefore, HMG can provide the following benefits:

• Smoothen import-export operation
• Reduce logistics cost
• Reduce operation risk
• Avoid unnecessary tariff charge
• Provide nationwide delivery coverage



Post Sales

It is more challenging than ever to sell products in China, especially the high-tech products. If a good product does not have a set of customer satisfactory post-sales service to support, it could be difficult to expand its consumer base in China. Therefore, many foreign companies realize the importance of establishing the capability of providing effective post-sales services. However, establishing this capability involves the following issues:

• How to import spare parts and how to export defective parts
• How to reduce unnecessary duty cost especially for warranty support
• How to coordinate the RMA process
• Where to store spare parts to support contract users
• How to deliver replacement parts to the hand of user

HMG has years of experience in providing post-sales services, especially to the high-tech sector, in China. As a professional logistics service provider, HMG can provide the following benefits to customers:
Have rich experience in handling import-export activities
Provide bonded warehouse and distribution center
Can legally apply for duty reduction or exemption for customers
Have a coordination center to coordinate the RMA operation
Have nationwide delivery work to cover every region in China
Provide the ability to monitor the whole RMA execution and delivery process