The traditional supply chain method of overseas supplier packaged and delivered product is evolving. The pace of change is rapid and importers need to adapt or suffer competitive pressures through loss of sales and local sorting and distribution costs.
Historically, Australian importers have maintained local distribution facilities, either in-house or 3PL, in order to deliver product domestically. In today’s environment this can be an expensive solution when compared to options available off-shore.
There is an increasing trend of transferring labour intensive activities, such as Pick and Pack, to low cost countries closer to the supply source. For example, Magellan Logistics can provide a Pick and Pack solution in Hong Kong or Shanghai, that shortens the supply chain and provides significant cost savings to its customers. All orders are processed at a SKU level and packed for ultimate store delivery. The goods are then shipped directly to the customers designated outlet or warehouse. This enables Magellan’s customer to eliminate double handling and freight cost duplication, as well as reducing the physical cost of distribution.
If your company is not currently utilising an off-shore distribution solution then it is imperative that research be undertaken to examine the feasibility to do so.
Magellan Logistics can assist you with this through the provision of expert advice and consultancy.