DCH Logistics Planning for La Cafetière What are the advantages of having a bonded Warehouse and how can it help in doing international business?
A Bonded Warehousing can be defined as storage, manipulation, or further manufacturing of dutiable goods in a building or other secured area without the payment of duty on it.
Advantage:
Goods can stay in a bonded warehouse for an unlimited period of time, and no import duties and VAT will have to be paid until the moment they are actually imported into free circulation in the EU, e.g. to be transported to a customer. - You get the possible suspension of certain trade policy measure (license, ID, ...) - You get a significant cash advantage, because the fees and charges are payable Then DCH also offer La cafetière a storage solution with the bonded warehousing that will allow la cafetière to saves up on inventory/ storage cost/ facilities implementation.
Overall we can say that DCH is bringing La cafetière opportunities to develop their market in Asia, allowing them to continue to produce high end goods, and to develop in a new area, without experiencing the “starting up” problem that are link to new implementation such as : * Warehouse implementation * Reverse logistics problem * Tax on manufacture goods * Business network * Reputation in the new country
What should DCH Logistics do to develop its business further?
DCH is a 3PL, which means that the network they build in a particular area is their main assets, aside from their experience and reputation, that is their “Trust insurance” for company that want to implement in the area “mastered” by the 3PL.
Here DCH is really well integrated in the Asian business network, and have developed their infrastructure in strategic area. They offer bonded warehousing for their client, business network and facilities: * Distribution center * Packaging services * Stock management and facilities.
These are the 3 main option DCH are offering, if they want to develop their business, there is a lot of services they can bring up to their future client.
