As we gear up for peak season in the freight forwarding and logistics business it seemed timely to revive a blog post from earlier in the year.
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 some of the 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 provides a Pick and Pack solution in Hong Kong and Shanghai, that shorten the supply chain and provides significant cost savings to our 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 considering using an off-shore distribution solution you should research and examine the options and find out what is most feasible for you.
Magellan Logistics can assist you with this with expert advice and consultancy.