If you are evaluating the benefits of using a warehouse in China to ship stock to your international customers, then this article is for you. While, consolidated shipments offer freight savings, shipping in smaller batches is more expensive but it reduces the lead time to your customer. This is an issue many businesses struggle to balance.
In this blog post we’ll explore some of the not-so-obvious, but real and proven advantages of using a consolidation point in China, along the lines of what PassageMaker clients enjoy.
Since we are physically touching the boxes to put them in our Buji warehouse, it is easy to apply a quality gate. Payments to suppliers are linked to this quality gate. Linking payments to supplier performance is a powerful incentive and any QC issue/supplier payment adjustments are sorted out BEFORE the goods leave China.
Some of our clients have the products sourced from various suppliers, packaging from a single supplier, then the goods/packaging are delivered to us and we QC while putting the product into the boxes. This kills 3 birds with one stone- QC, matching packaging across multiple vendors & inventory transparency. Along with the freight benefits of consolidation of course.
Here is a technical reason why PassageMaker has won this type of work for our clients:
If the goods come from multiple vendors and the consolidation point is inside China, then the consolidation partner is responsible for clearing outbound customs, sorting out the VAT rebates. It’s also important that the consolidation partner has the correct scope on their business license.
I’m happy to say PassageMaker has the right business license, has import-export rights and with 2 in-house licensed customs brokers I ensure our clients are getting the maximum rebate on the VAT when exported.
And if some day you wish to sell to China based customers …know that our licensing also allows us to service that market by accepting RMB (on your behalf, convert into USD and repatriate the profits minus our service fee back to client) and providing the ‘Fapiao‘ (official receipts) to the domestic buyers.