Free Trade Zones (FTZ) in China
Located in Shanghai, China's first FTZ was launched in September 2013 as a testing ground for economic policy reforms. Following its success, three other FTZs have opened across China in 2015.
The Free Trade Zones have:
- A streamlined customs supervision framework
- Simplified administrative systems
- Competitive regulatory and tax policies for businesses
- An appealing environment for international trade, consolidations and value-added logistics operations
Arvato's site in Waigaoqiao, Shanghai is an example of the company's continual growth in China. Our proven expertise in China's market enables you to build strong trade networks and develop the best fit supply chain model for your business.
Arvato’s New Bonded Warehouse in the Shanghai Waigaoqiao Free Trade Zone
Supply Chain Management Solutions
Our China experts and strategic setup in the Free Trade Zone allow you to enjoy the advantages of special taxation policies, simplified customs processes and efficient export management.Raoul Kuetemeier - Head of Asia at Arvato SCM Solutions
Arvato's experience and its world class TMS and analytics systems will enable you to optimize your transport chain which in turn will reduce transportation costs, improve on-time delivery performance and provide greater logistics transparency. Arvato combines an efficient management operations team with a world class transport management system.
Inventory management is a key part of supply chain management. We at Arvato can help you and your organization increase your service level while optimizing the inventory cost structure.
Services we offer for our clients are:
- Demand planning
- Vendor Managed Inventory (VMI)
- Purchasing & supplier management
- Transferring the products to our books
- Master data management
- Lot, batch and serial number management and tracking
All of these modular elements are fully integrated into our global SAP system. Together with our customers we are defining the right targets to aim for in terms of service or inventory level. We are also able to coordinate your service providers and suppliers, while at the same time purchasing the products and transferring them into our books.
Especially in the retail environment but also in other branches of industry it is an important tool to ensure that your customers are not running out of your products to avoid losing sales. Here we offer an automatic ordering and replenishment process (Vendor Managed Inventory – VMI) in which the inventories are monitored and managed throughout the supply chain. Within our SAP system we manage all logistically relevant master data. This also includes monitoring lot, batch and serial numbers throughout the entire distribution process.
Trade, Tax & Compliance
In order to maintain this working environment, Arvato has a team of specialists who ensure compliance with these legal standards thanks to their regular training and proven track record in this area. These experts support in all areas where compliance, trade and tax expertise is necessary.
This includes evaluating new and existing business models, internal and external training as well as liaising with a wide range of authorities and other organizations. As part of the Value Stream Management the Trade & Compliance department is responsible for ensuring that import and export processes run smoothly and that other processes and customs procedures are compliant with legal standards.
Sourcing & Procurement
For Arvato, supplier management means optimizing your supply chain by ensuring the most cost effective procurement, the best level of service from suppliers and the highest quality of purchased goods. Arvato successfully plans, manages and controls relationships within the supplier network, including contractual agreements, terms and conditions. Arvato can take over this function for both existing and new suppliers. Arvato's own global purchasing team is strategically spread across the EMEA, Americas and APAC regions and is therefore able to perform the strategic supplier management function on a global scale.
- Ensure and optimize risk-free procurement
- Discover and utilize possible synergy effects
- Build up, maintain and optimize successful supplier relationships
Warehousing & Distribution
Our expertise and experience in all aspects of warehousing and distribution enable us to adhere to best practices in all areas of the supply chain. As a multi-channel distribution specialist, Arvato can control all warehousing and distribution processes from the production floor to your distribution channels efficiently and reliably.
Arvato operates a global network of warehouse locations based on a single, global WMS system. This means that we are able to establish new customers in America, Europe, Asia or emerging countries quickly and reliably while maintaining global transparency and comparability.
- Global network of top-quality warehouse locations
- Certified security solutions for high-value products (TAPA)
- Paperless warehousing processes with various picking strategies and technologies, including pick-by-light, pick-by-voice, etc.
- Customized process models seamlessly integrated into SAP
- Batch and serial number tracking
- Distribution solutions for direct-to-retail, direct-to-store, and direct-to-consumer
- Further value-added services such as value added logistics services and postponement as well as network analysis and management
- The option of combining manufacturing and distribution processes in one system
Vendor Managed Inventory
VMI guarantees optimized performance in the supply chain. Suppliers receive valuable retail data on inventory and sales. The VMI system offers automated management of own products while providing performance analyses and generating order recommendations. The Arvato VMI system r.i.m. (retail inventory management) provides a sophisticated software that bridges the gap between suppliers and retailers and offers valuable benefits for both parties.
Arvato offers a broad range of value added services. In combination with our SAP system we can trigger and implement retailer-specific VAS requirements. This can relate to different criteria and the requirements can vary according to country, product, retailer or product category. The targeted management of retail requirements from SAO ensures a high level of quality and thus ensures retail-compliant shipment.
- Labeling and packaging for product launches or promotion campaigns
- Packaging design and optimization, including for sales displays
- Co-packing of flyers, inserts or stickers to support marketing campaigns
- Fulfillment of retail-specific requirements (labels, price labeling separate packaging and delivery of launch items, etc.)
- Software update or product configuration (e.g. adjust radio frequency)
- Reworking and light assembly of products according to individual requirements
- Consignee-specific labeling and packaging
- Re-working, repackaging or re-labeling for promotional returns
- Design, sourcing, building and filling of product displays and distributing them in a retail-compliant way
Today, Business Intelligence is one of the most requested functionalities by our clients. By transforming data into information, improvements can be made on all level of the supply chain. For example, a more accurate forecast of requirements can significantly improve the planning of a project or a business. Business Intelligence helps to improve coordination with vendors and partners and improve cost structures and customer satisfaction.
- Customized reporting
- Supply chain analyses
- Cost-to-serve analyses
- Performance reporting
- Self-service and automatic distribution of reports
The term "countrymization" is a combination "country" and "customizing", in other words, making inventory country and language-specific. Products from the high-tech and consumer electronics sector are designed for a number of markets, but the country or country group variations differ in terms of languages on the package and in the instruction manual, legal information (e.g. Grüner Punkt, TÜV, CE label), connector cables, frequencies, software version and many more.
Countrymization refers to a Supply Chain that is designed to store inventory in a neutral state, applying country-specific product characteristics later. By doing this, it is possible to prevent wrong products being stored (those that are not being sold), while more sales could be generated with this product in other markets.
Arvato offers the following countrymizing services:
- Product labeling and packaging, including products for promotions and product launches
- Print on demand or sourcing of print materials
- Software update, software loading or adapting the product configuration (e.g. setting a radio frequency)
- Co-packing of marketing materials or promotional items
- Reworking of products, building kits with various articles and adding plugs
- Country specific packaging
- Re-working of products or re-labeling of returns from marketing campaigns
Value Added Services
Arvato’s value added services in combination with logistics services provides integrated supply and demand chains. Beyond manufacturing, warehousing and distribution, services range from the basic materials procurement, labelling/bar-coding and packaging design to the more intricate of complex assembly and product configuration and customization. Value added services can be provided as manufacturing batches or based on criteria such as country, customer, product or product group.
- Labelling and packing for promotions and product launches
- Packaging Design & Optimization
- Co-packing of flyers, inserts or stickers to support marketing campaigns
- Fulfillment of retailer-specific requirements (specific labels, etc.)
- Reworking and assembly of products, e.g. for refurbishment of consignment goods
- Software updates
- Re-packaging or re-labelling
Arvato has an international network of service locations, if requested in industrial or transition countries. From these locations Arvato can take over complete processes as a BPO service provider, which can range from data capture, data checking and data maintenance, credit checks to the enrichment of data records. Arvato can also create internet portals for entering end customer data.
Overview of our services:
- Order reception
- Various locations in industrial or transition countries
- Development of webpages for auto-entry of orders
- Master data capture and maintenance
- New product launches and deactivation of products (processes for all product lifecycles)
Goods in the Free Trade Zone can be parted and regrouped before shipping to various destinations. This enables us to run efficient cross docking models suiting your distribution needs.
Goods entering from China Free Trade Zone are regarded as exports that have left the country allowing exporters to redeem tax rebates immediately. This also simplifies the export clearance process when goods physically exit the zone.
Choose Arvato to expand your business network in China!
Arvato has an extensive and highly professional network in China to support the supply chain needs of your business, ranging from import to export management. Contact us to find out how you can gain a competitive edge using efficient models in trade and logistics with our newest facility in the Waigaoqiao Free Trade Zone.