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In the 21st century, the key feature of the greatest demand is mainly reflected in high-mix, small-batch, globalization and promptness. The creation of supply chain to maximize the value will be the rapid response based on demand management. Demand management has become a necessary condition for the sustained success of enterprises and accurate demand forecasting and rapid response capability improve anti-risk of enterprise significantly. Supply chain partners participate in all aspects of supply chain to achieve up and downstream collaboration. It is critical to plan and manage logistic process and node. With its advantages of operational experience and information system in the field of international supply chain logistics in nearly two decades, HMG Supply Chain can provide a variety of logistics solutions for multinational companies from pre-sales, production, to sales and after-sales process.

DC (Distribution Center)

The location and function of regional distribution center directly affects the response speed and operating costs of the supply chain, as well as the extent of collaboration. Many multinational companies, which used to supply to the Chinese market, have set up raw materials and spare parts logistics distribution centers in places such as Hong Kong or Singapore, to achieve centralized distribution to the factories around China and neighboring countries. With development of downstream customers transferring to other regions, expansion of function of bonded warehouses or bonded zones, as well as improvement of efficiency of customs clearance, more and more suppliers establish regional distribution centers in the bonded channels close to the customers to achieve the lowest cost and minimized lead-time of logistics.
Overall, through 3rd party distribution center services provided by HMG Supply Chain, suppliers can achieve the following purposes:

• Domestic products that do not have to pass Hong Kong or other countries, can be shipped directly to the distribution center, saving the cost of logistics and shorten the procurement cycle-time and reduce the risk of inventory;

• The imported or domestic purchase of raw materials, components and finished goods can be stored a long time in bond, transshipped and transferred to another bonded warehouse or bonded zone.

• Compared to a distribution center in Hong Kong or Singapore, China's warehousing and logistics costs are relatively low, therefore the transit cost can be saved;

• By setting up a distribution center near the customer's location, can provide customers with JIT delivery services to help customers achieve "zero inventory" management, improve customer satisfaction;

• Value-added logistics services can be provided, such as unpacking, packaging, labeling, and quality inspection to shorten the production cycle time and enable manufacturers to focus on its core business, which win the differentiated services advantages;

• Supplying goods to a number of manufacturers at the same time by distribution center could balance the stocks and reduce the overall inventory; the nearer from distribution center to factory, the lower safety stock required, thereby reducing inventory capital;

• Make suppliers more focused on product development and customer exploration and other core functions, thereby enhancing the competitiveness of their businesses and access to the benefits of specialization by outsourcing distribution center services, such as application for export tax rebates, customs clearance, bonded warehousing to value-added logistics services.

• Suppliers can also require the upstream suppliers to set up the VMI warehouse close to the distribution center in order to reduce the risk of devaluation or emergency replenishment;

• Take advantage of HMG’s resource of large hi-tech industry suppliers and manufacturers, thus expand the channels of business development and optimize the combination of inventory;


• Provide third-party distribution center services for the seasonal fluctuations suppliers, thereby adjust the warehouse space in a short time to save costs and improve flexibility of the warehouse.

VMI (Vendor Managed Inventory)

VMI is becoming a trend in the communications and IT and other high-tech sectors, because of the product life cycle is short, update speed, high degree of internationalization of the industry chain and centralization of industry cluster. Mainstream global electronics manufacturers basically take advantage of VMI solution to reduce inventory and achieve JIT production. VMI is the so-called raw material inventory management from the hands of users back to vendor, accomplishing data sharing and transparent joint planning decisions of supply chain, thereby reducing inventory costs and risks in the supply chain parties. The obvious benefits to the manufacturers are that there is no front-end stock funds to the occupier, and also reduce the loss of market changes brought by the devaluation of the material. For suppliers, it means that the pressure and responsibility on the stock transferred to the hands of their own, which makes products and inventory management more difficult for the most suppliers.
HMG Supply Chain introducing the third-party VMI service can assist suppliers to achieve the following purposes:

• Provide VMI services to meet the needs of manufacturers and win orders under the premise of not establishing its own warehouse;

• Take advantage of inventory management for the multiple vendors to balance inventory levels and reduce overall inventory costs;

• Utilize of HMG’s resource and advantage of the bonded warehouses near the manufacturers, such as DFDL, to provide time-critical delivery for the manufacturers.

• Use value-added logistics services HMG provides to achieve service differentiation, such as packaging, labeling, direct delivery, etc., to obtain a competitive advantage;

• Provide third-party VMI services for the seasonal fluctuations suppliers, thereby adjust the warehouse space in a short time to save costs and improve flexibility of the warehouse.

• Make suppliers more focused on product development and customer exploration and other core functions, thereby enhancing the competitiveness of their businesses and access to the benefits of specialization by outsourcing VMI services, such as application for export tax rebates, customs clearance, bonded warehousing to value-added logistics services.

• Realize to store imported goods in bond in the VMI warehouse, defer tax render, develop simply processing and in-transit trade, etc.;

• Take advantage of HMG’s resource of large hi-tech industry suppliers and manufacturers, thus expand the channels of business development and optimize the combination of inventory.