Logistics
Materials used in a local manufacturing facility can be procured almost anywhere in China and then shipped from one of the many shipping ports scattered along the eastern coast line. Getting to know the ports (shipping and receiving) and their capabilities is as critical as the sourcing activity itself. Location, size, capacity, union contract, weather and the seasonality of the products handled by a port can have an impact on the cost and the on-time delivery of the materials sourced.
It is also important to undertake a review of the organization that the company will use on an ongoing basis to handle the containerization, the documentation and the delivery of the container to your factory floor. There are many companies that offer this service and the quality of the service is as diverse as the number of organizations offering the service. When selecting a logistics company to manage your shipments, it is important for the buyer/logistics team to understand and prioritize the needs of the company and then conduct the search for a logistics management company that best suits the company’s production needs.
After delivering the basic details for managing the on-time shipping and delivery of the production materials, the buyer/logistics team can initiate activities that can contribute additional cost savings through the logistics process. Over the years I have developed a wide range of solutions for clients that have contributed to lowering per unit shipping cost or creating an improvement in factory productivity through a variety of creative and innovative containerization efficiency programs. The “Taking Care of the Pennies” posts are examples of successful creative programs specifically targeted at delivering cost reductions in addition to the original materials procurement process.