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 World Trade Center Buffalo Niagara has helped
strengthen the global position of numerous companies.
Trade Success Stories:
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INTERNATIONAL TRADE CASE STUDY:
WTCBN's logistics experience helps manufacturer retain major customer who demanded JIT delivery in China.
WTCBN Client Profile:
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A local manufacturer working in numerous industries including
pharmaceutical and medical diagnostics;
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Experience selling and sourcing in domestic and international markets;
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Export sales represent 28% of total sales;
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Annual revenue is $50-$75 million;
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Number of employees is 350-500.
The Trade Challenge:
This local manufacturer enjoys a strong competitive position and has
experienced significant growth as part of an integrated domestic and
international business strategy.
The manufacturer had been selling their product in full containers and
making product available for pick up by a major customer in the United
States. The manufacturer’s customer managed the product storage at their
United States facility. The customer then moved its manufacturing to China.
In order to keep this customer’s business, the manufacturer needed to
deliver their product on a just-in-time basis to China. This customer
represented $2.4 million in gross sales annually; obviously, senior
management needed to respond quickly to satisfy this major customer.
Making a transition from full truck load shipments within the U.S. to
just-in-time delivery from the U.S. to China would require thorough due
diligence and careful supply chain management. Logistics related services,
both inbound and outbound, can be among the highest costs of doing business
internationally.
The manufacturer needed to begin shipping its product to a facility in
China to allow the just-in-time deliveries to its customer within 60 days.
In order to keep internal resources focused, the manufacturer engaged the
services of World Trade Center to help them analyze and implement a strategy
and facilitate the project within this short timeframe.
Specifically, they hired World Trade Center to identify and qualify a
reputable third-party Customs bonded warehouse in China and to achieve a
quick, practical, and cost-effective solution to this distribution
challenge.
Within the 60 day timeframe, the following steps were taken by World
Trade Center in close cooperation with the manufacturer:
World Trade Center International Consulting Deliverables:
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Defined/refined space requirements in terms of size, location and
services;
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Provided detailed analysis of using public storage vs. a corporate-owned &
operated facility;
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Located and qualified space options for on-site review by corporate
executive team;
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Reviewed and advised the manufacturer’s shipping routes;
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Developed cost analysis of new distribution center
World Trade Center clearly defined and refined the manufacturer’s
requirements for warehouse and distribution space in China. This included an
analysis of the square meters of storage required, the estimated volume of
traffic of merchandise in and out each month, and what services were
required for delivery to customer’s facility on JIT basis.
World Trade Center located and qualified third-party warehouse options; a
“short list” was developed and presented to the manufacturer for its own
evaluation. With hands-on in-market capabilities, World Trade Center then
made arrangements for in-person visits between the corporate executive team
and potential partners in China.
World Trade Center reviewed and made recommendations for the best
shipping routes from the U.S. to the new China distribution center and from
the distribution center to its main customer; including secondary options
when primary routes are unavailable.
World Trade Center developed a detailed cost analysis of the new
third-party distribution facility, including cost of space, shipping (both
in and out), duties/taxes, brokerage and administration fees.
World Trade Center also used its network to identify other local (WNY)
companies that have opened distribution centers in China and facilitated
introductions to the manufacturer in an effort to share successes and
lessons learned.
World Trade Center Project Team Capabilities
Export Management and Logistics Expertise:
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Strong experience in the implementation of market entry strategies;
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Knowledge of export and import requirements and regulatory compliance
issues;
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Proven entrepreneurial approach to logistics and distribution challenges;
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Two licensed U.S. Customs brokers on staff.
Results:
World Trade Center presented six warehouse options for the manufacturer and
offered recommendations for the manufacturer to make their choice after face
to face meetings with the prospective Chinese partner.
The manufacturer has a happy customer in the U.S. and China, as well as a
solid logistics service partner for all their business in China. The
warehouse will also serve as a base from which the manufacturer can expand
their sales in China. The manufacturer’s longer term plan is to have a
self-owned facility in China.
The project was completed very quickly and enabled the manufacturer to
satisfy and retain a customer representing more than $2.4 million in gross
sales annually.
Another similar project was also completed for a JIT hub in Thailand.
Company Quote:
“World Trade Center was instrumental in helping our company successfully
execute our objective to establish a JIT distribution hub in China. We were
under a tight time constraint and were able to implement the project because
of World Trade Center’s help. The staff was exceptional in providing
hands-on implementation, strategic information, providing guidance and
meeting timelines.”
To discuss how World Trade Center Buffalo Niagara can help you with
distribution or other trade issues, call us today at 716.852.7160 or
toll-free 1-877-WTC-INTL (1-877-982-4685).
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