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Bearing giant SKF's free trade zone ledger: from a year to save 5 million

2016-10-13

No. 291 Meiyue Road, Waigaoqiao, Shanghai Free Trade Zone, a large distribution center covering an area of nearly 50,000 square meters, is operating 24 hours a day.

This is the Northeast Asia Distribution Center officially opened in Shanghai Free Trade Zone by the global bearing giant SKF (SKF) in June this year.

Zhou Jie, general manager of SKF (China) Logistics Services and head of SKF Distribution (Shanghai) Co., Ltd., said in an exclusive interview with the surging reporter that after the establishment of the Northeast Asia Distribution Center, SKF has settled the Chinese market Combined with trade logistics, “Chinese customers’ orders no longer need to be transferred through Singapore, but are shipped directly from Europe, theoretically (transport time) saving 8-9 days. ”

This means nothing to the Shanghai Free Trade Zone.

Before the Northeast Asia Distribution Center was put into operation, SKF ’s trade activities in mainland China (including Japan and South Korea) were mainly settled in foreign currencies by SKF China Co., Ltd. established in Hong Kong; logistics was established in Singapore The distribution center supports it. After placing an order with SKF ’s Chinese customers, the goods are generally shipped from Europe to Singapore and then transferred from Singapore to Shanghai.

Now, SKF has copied these two logistics and capital settlement functions to the Northeast Asia Distribution Center in Shanghai Free Trade Zone. After this adjustment, the current positioning of SKF Singapore Distribution Center will be changed, and it will mainly serve Southeast Asia and South Asia.

In fact, as early as 2009, SKF had considered setting up a distribution center in Northeast Asia. At that time, SKF did a series of research on logistics development in the Asia-Pacific region, and the proposal of the Northeast Asia Distribution Center came into being. Due to business needs, the new distribution center needs to have a bonded warehouse function. After multiple site selections, it finally settled in Waigaoqiao, which was not yet upgraded to a free trade zone.

"Waigaoqiao not only meets the needs of bonded and non-bonded products for warehouse management, but also has an international level of operating philosophy, which has become our only choice." Zhou Jie said.

Zhou Jie joined SKF in 2006 and has been serving the logistics team.

It is undeniable that Singapore and Hong Kong, as world-renowned logistics and financial centers, are no worse than Shanghai in terms of environment and policies.

However, Zhou Jie said, "We still believe in the Chinese mainland market (potential). We must ensure the consistency of the flow of goods and capital as much as possible. A good match between the two can achieve overall convenience."

She does not deny that Shanghai still has room for improvement in all aspects, but she believes that it is only a matter of time before the Shanghai Free Trade Zone reaches the level of Hong Kong and Singapore.

Especially after the listing of the Shanghai Free Trade Zone, the function of the SKF Northeast Asia Distribution Center has become more complete.

According to Zhou Jie, the SKF Northeast Asia Distribution Center has three main functions: logistics transshipment, import redistribution, and logistics consolidation.

In common understanding, logistics transshipment refers to the direct delivery of SKF ’s European factory after the domestic customer places an order. It can bypass the previous Singapore distribution channel and directly reach the Northeast Asia distribution center at Shanghai Waigaoqiao for transshipment delivery. ; Import redistribution refers to the fact that Shanghai will have sufficient stocks of imported products in order to achieve rapid delivery of orders. Logistics consolidation is part of the products produced by SKF's Chinese factory, which will also be stored in the distribution center.

"So, if the orders placed by local customers include both bonded and non-bonded products, they can be conveniently sent to customers through the Northeast Asia Distribution Center. Previously, bonded and non-bonded products needed to be stored separately." Zhou Jie said.

SKF previously had four warehouses in China, two of which are located in the bonded area, and the other two are located outside the bonded area.

Zhou Jie said that it can now be used in combination. Bonded and non-bonded are combined into one. "This is the use of customs' classification and supervision policies for the status of goods. This is what we can really feel and can save 5 million yuan a year. "

Not only has the cost of operations been reduced, but the inventory structure has also been optimized. According to an example, "For example, for a certain product, the bonded warehouse used to prepare 2 safety stocks, the non-bonded warehouse also required 2 safety stocks, and two places needed 4 stocks. <4, as long as we have 3 safety stocks, we can achieve the same service level, and optimize the stocks under the same demand.

At the same time, when the demand for the RMB business suddenly increases, SKF can also use the inventory originally provided for the foreign currency business. Conversely, when the demand for the RMB business suddenly decreases, the foreign currency business can consume its excess inventory. "This reflects the flexibility of resource allocation brought about by the merger of the two warehouses." Zhou Jie said.

The SKF Group's sales in 2013 were 63.597 billion Swedish kronor, and the Chinese business accounted for about 12% of the group's sales.