slc assistant to international auto parts purchase

							SLC: Assistant to international auto parts purchase

Auto logistics is an emerging but promising industry in China. In this expansive market, Shanghai Industrial-Wallianfa International Logistics Co., Ltd (hereinafter referred to as "SLC") chooses auto parts logistics as its development orientation. As a 5year enterprise with high growth, SLC has found a striking place for itself in import & export logistics and bonded logistics. Auto parts logistics is a rewarding industry that is worth exploring and it will become a strategic priority for SLC in the future. In the internationalized material supply and purchase environment, logistics process in international purchase is greatly restricted by a lot of conditions and many bottlenecks emerge in the link of international sea/air freight, domestic warehousing and distribution due to existence of customs, tariff and foreign currency management. That is where SLC brings itself into function. Aiming at demands of auto parts purchase and finished products distribution by auto manufacturing enterprises, SLC has set up distribution center near factories, conducted bonded warehousing for auto parts, equipped itself with advanced logistics

management information system and provided enterprises with full service including import/export customs clearance, warehouse management, manual management, JIT distribution and VMI data support. In the eyes of Sylvia, director of logistics in Delphi, SLC has become an indispensable partner for Delphi in supply chain management. Since 2005, Delphi has outsourced logistics service of its four factories and R&D center in Shanghai to SLC. SLC has provided bonded and non-bonded warehouses of 6000 square meters near Delphi factories for material supply management and set up channels with fixed distribution time for 24hour fixed-schedule distribution. In order to practice the one-team ideology promoted by both parties, SLC has sent customer service representatives to every factory of Delphi to provide in-house service and promote improvement of supply chain management performance. In addition to regular supply chain management, Delphi QAD system has been connected with SLC's logistics management information system and directly realized order making, inquiry and information feedback. All these

have doubled the export customs clearance of Delphi factories, and reduced inventory by over 60%. In 2004, SLC has established the first export purchase center in Shanghai Waigaoqiao Bonded Logistics Park for Pioneer Technology (Shanghai) Co., Ltd, in order to supply materials for its 9 auto acoustics factories across the world. Among the 86 suppliers, 65 suppliers are located in common domestic districts, 12 in Waigaoqiao Bonded Zone and 9 in foreign countries. Overseas factories make small-batch purchase order every day according to customers' requirement plan. In delivery to overseas enterprises, almost all goods of 86 suppliers are included, and there are only a few cartons of electronic products. Through product quality inspection, inventory order management and international sea/air freight service provided by the purchase center in the park, SLC helps Pioneer Technology (Shanghai) Co., Ltd realize mixed loading delivery for multiple orders and customers. Since the bonded logistics park carries out tax refund policy, goods of domestic suppliers entering the park for export can

immediately realize manual verification, integrate with import goods, obtain export tax refund at once and minimize the cost. Wang Yidong, vice president of SLC, said: "Cooperation between SLC and Delphi, Pioneer Technology (Shanghai) Co., Ltd demonstrates that China also has excellent thirdparty logistics service providers, who can become reliable partners in international auto parts purchase. However, many people hold misunderstandings towards Chinese logistics enterprises." Wang Yidong said, some overseas auto factories do not know much about Chinese logistics industry. They think that Chinese logistics enterprises are very weak in capabilities. Domestic complete vehicle factories and auto parts enterprises are not too familiar with capabilities of third-party logistics enterprises and think that they are far behind. In logistics, they always focus on air and sea freight. In fact, modern logistics is a supply chain which integrates modern traditional logistics operation through information technology. Its ultimate goal is to satisfy customers' material demands in the shortest time and at the lowest cost. Therefore, be-

sides transportation vehicles, logistics also involves warehousing, management and import/export issues. Customs clearance is relatively slow in China, import and export issues such as customs declaration, customs clearance, tariff and foreign currency management shall be especially given priority. If not well managed, they will affect smooth operation of logistics and cause many bottlenecks, thus influencing realization of the goal of short time and low cost. That is where the third-party logistics enterprises can function. As the first batch of third-party logistics enterprises which were conferred the title of Class A Customs Management Enterprise in Shanghai, SLC initiates several convenient customs clearance modes such as exit in batches and concentrating declaration, and becomes the first experimental enterprise in China, which realizes paperless customs clearance without subsequent submission of bills and provides highly-efficient tools for auto parts import and export logistics. In this field, SLC is constantly growing in the competition with transnational logistics giants by means of its own distinctive advantages.