/ By ASI Logistics / Logistics/ • • • • / 0 Comments

From Cost Management to Compliance: The Answers to Your Logistics Concerns

Logistics is key to business health, but also source of many concerns. Today, we tackle the most common apprehensions companies raise regarding their logistics operations. From cost management to compliance, including inventory management, find out how to not only ensure smooth logistics operations, yet also make them part of successful business strategies! 

According to a report issued by Fortune Magazine, 94% of the Fortune 1000 companies faced Covid-19 induced supply chain disruptions. This figure and, more generally, the pandemic, highlighted how central to a company’s health its logistics operations are.

 

Does your company rely on domestic or international shipping?

Understanding where the disruptions come from is thus essential to conducting smooth operations, and the first step toward finding the right strategies to ensure one’s business runs smoothly.

Today, ASI Logistics dives into the main concerns businesses have in regard to supply chain and logistics operations, and the best practices to ensure their logistics operations not only run smoothly, yet also elevate their efficiency and even integrate into successful strategies.

Cost Managementt: Spending Where It Matters

Businesses around the world are concerned about how to best optimize their costs and correctly channel their spendings and investments into the functions that create the most value. Logistics operations are no exception to this logic, and finding the right solution that meets your business needs and priorities is essential.

 

💡THE ANSWER💡

Your logistics partner should thus, first and foremost, be an attentive ear who takes the time to understand your business and its specificities and offers informed solutions.

At ASI Logistics, we do not believe in the “one-size-fits-all” rhetoric. Our customer-centric ethos is engrained in the designing of built-to-suit, customized logistics solutions. Whether your project calls for velocity, cost-optimization, multi-modal transportation, route optimization, or out-of-the-box solution, we treat your demand with diligence.

Thanks to our extensive portfolio of services, our teams of experts present in 8 key locations, our trusted partners, and our worldwide network, you are sure to be provided with the perfect solution to fit your needs.

Supply Chain Disruptions: Leveraging Flexibility in Uncertain Times

Disruptions in the supply chain, such as natural disasters, geopolitical events, or transportation disruptions, can have a significant impact on a company’s logistics operations.

💡THE ANSWER💡

At ASI Logistics, we are committed to being the most up-to-date and responsive in case of such disruptions. Our a solution to any disprution.

Inventory Management: Meeting Customers’ Demands While Minimizing Costs

Inventory management is a critical aspect of logistics operations. Companies need to balance having enough inventory on hand to meet customer demand while minimizing the costs associated with carrying excess inventory. The perfect equilibrium of this tricky balance lies in both your business model and the overall business environment you evolve in.

Relying on a flexible and responsive logistics and freight forwarding partner nevertheless remains a staple of successfully optimizing your inventory management to the needs and priorities of the time.

💡THE ANSWER💡

ASI Logistics offers scalable and connected warehousing (bonded and non-bonded) and distributions services and optimizes their solutions to fit your needs, while our teams are dedicated to ensuring your goods arrive on time and in perfect conditions so they can meet your needs and your clients when and where they’re needed!

By working with us, you ensure that the priorities of your partner are aligned with yours, and can focus on matters the most: satisfy your customers.

Compliance & Regulations: Ensuring Smooth Import & Export

Companies need to comply with a variety of regulations and requirements related to logistics operations, including safety regulations, customs requirements, and environmental regulations. Failure to comply with these regulations can result in significant fines and other penalties, in short, with great disruptions.

 

💡THE ANSWER💡

Being up-to-date and informed about these regulations can be challenging, especially for businesses that lie on the smaller side.

With 15 years of expertise, readily informed teams, and an ethos of open communication and clarity, ASI Logistics is dedicated to ensuring your shipments go through registration and customs smoothly.

Logistics and freight forwarding efficiency are essential to a business’ success. That is the reason why we developed comprehensive sets of services that cover all the needs that might arise over the course of your company’s journey!

For the past 15 years, ASI Logistics has built a solid presence and expertise in the Asian region. With offices in 6 strategic locations, well-established partnerships, and worldwide network, we enable our customers to benefit from worldwide, flexible logistics and freight forwarding services, tailored to fit their needs.

 

Our goal

Provide businesses with seamless and optimized logistics and freight forwarding operations from, to, and within Asia.

 

ASI Logistics’ core values

👉Customer Centricity👈

👉Sustainability👈

👉People Development👈

Source:

/ By ASI Logistics / Logistics & Supply Chain/ • • • / 0 Comments

Is Resorting to Air Freight the Optimal Solution for Your Business?

Is air freight the most optimal mode of transportation for your operations? Although the fastest way of transporting goods, resorting to air freight for your logistics operations also has cons that all businesses involved in international trade should weigh before making their decision. In today's article, we summarize everything you need to know about air freight to make the most fitted decision regarding your logistics and freight forwarding operations.

In today's fast-paced economy, efficiency and responsiveness are determinant factors to a business's success. Air freight meets both these criteria, but is it the right transportation for your project and goods?

Today, ASI Logistics explores the situations in which air freight is indeed the recommended solution.

When is air freight the optimal choice?

 

  • Time-sensitive goods: air freight is mostly used for its velocity and the reliability of its ETA by businesses whose project requires tight time management.
    Indeed, this transportation method is not affected by road and rail conditions, and weather conditions cause shorter delays than they do to sea freight.
    Several situations might call for resorting to air freight's 560mph, among which:

    • Having to complete time-sensitive or urgent shipments, i.e., perishable goods, medical supplies, high-value goods, or time-critical components. In such cases, air freight allows transporting these goods across long distances in a matter of hours or days, depending on the origin and destination.
    • Relying on just-in-time inventory management, i.e., shipping goods as they are needed instead of maintaining large inventories. Air freight then allows for reducing inventory costs and streamlining supply chain operations as goods can be flown as needed to meet production or customers' demand.
    • Dealing with seasonal or promotional goods, e.g., seasonal garment collections or holiday merchandise. When dealing with tight or lean production and delivery, air freight thus appears as the best fit to meet customers' peak demand periods.
  • High-value shipments: for high-value goods, such as electronics, luxury items, or precious metals, air freight may be recommended due to its comparatively higher security measures and lower transit times.
  • Small quantities: air freight is best fitted to accommodate smaller volumes due to its comparatively scarcer available space and higher rates.
  • Easily reaching the entire world: when shipping internationally or across long distances, air freight can be comparatively more efficient, as it allows for faster delivery times. It is also a particularly good choice when trying to reach remote or difficultly accessible locations with limited transportation options.

 

The pros and cons of using air freight

When air freight becomes a strategy

 

As highlighted by the World Bank, resorting to air freight can be leveraged by companies and integrated to their business strategy and used to leverage their operations.

  1. "The use of air freight can create competitive advantages" for producers who can then agree on shorter order times and for manufacturers who can then use the velocity of air freight to replenish inventories as the need arises.
  2. "Air freight can be used as part of a strategy of diversification," allowing businesses to introduce products with shorter shelf lives or provide reliable delivery of smaller volumes in a new market before switching to cheaper modes of transportation that can accommodate larger volumes once the market is established.

 

Searching for a fast and reliable way to transport goods across the world?

As a leader in logistics and freight forwarding, ASI Logistics provides customized, high-quality air freight solutions crafted to fit your needs. Thanks to our comprehensive range of air, sea, and land freight services, we provide you with the right solution for your cargo.

Partnering with a reliable logistics provider is essential to any company's success. By working with ASI Logistics, you ensure your goods arrive at their destination safely and on time, your logistics operations are optimized to your needs, and your contact persons' priorities are aligned with yours.

We understand that your business relies on timely and cost-effective logistics solutions that don't sacrifice quality. Prioritizing our clients’ needs, embracing the uniqueness of every request, and building long-lasting business relationships are at the core of our ethos.

Thanks to our wide range of services, 15 years of expertise, and outside-of-the-box thinking, we strive to offer customized solutions that meet our customers’ specific needs and demands.

Our goal

Provide businesses with seamless and optimized logistics and freight forwarding operations from, to, and within Asia.

 

ASI Logistics' core values

👉Customer Centricity👈

👉Sustainability👈

👉People Development👈

Source:

/ By ASI Logistics / Logistics & Supply Chain/ • • / 0 Comments

Sea Freight: When Slower Rhymes with Smarter

Is sea freight the most efficient and optimal solution to move goods for your business? Although a slower means of transportation, sea freight has many advantages that companies can leverage to optimize and improve their operations. In today’s article, we give you the tools to make the most fitted decision for your logistics and freight forwarding operations.

When it comes to moving goods, each means of transportation has its pros and cons. Even though sea freight is a slower option, it can be the most optimal for your business needs. Today, ASI Logistics introduces you to the situations in which slower indeed rhymes with smarter!

When is sea freight the optimal choice?

  • Shipping large quantities: sea freight is ideal for shipping large quantities of goods or large items, as it can accommodate large volumes of cargo.
  • Long-distance shipping: sea freight is the chosen means of transportation for long-distance shipping, especially thanks to its cost-efficiency.
  • Lower urgency or flexible timeframes: sea freight is a slower yet more cost-efficient mode of transportation. Hence, if your schedule and type of goods allow it, sea freight is an excellent choice.
  • Environmental friendliness: compared to air and land freight, sea freight is the most sustainable option and is set to become even more so as clean energy shipping is developing, allowing one to reduce transportation-induced carbon emissions efficiently when moving large quantities of goods. As more and more businesses and customers are concerned about the environmental impact of shipping, sea freight thus appears as the chosen path for companies working toward sustainable operations.

Searching for a reliable and efficient way to transport goods across the world?

As a leader in logistics and freight forwarding, ASI Logistics provides superior quality and high-efficiency customized sea freight services for businesses of all sizes, no matter their project.

Partnering with a reliable logistics provider is essential to any company’s success. By working with ASI Logistics, you ensure your shipments arrive at their destination safely and on time, your logistics operations are optimized to your needs, and your contact persons’ priorities are aligned with yours.

We offer both FCL & LCL service with a wide choice of ocean carriers, thus allowing us to be flexible and offer more frequent sailings, additional vessel space, and reliable schedules.

We provide you with the right tools to craft the logistics solution most adapted to your needs and priorities, i.e., businesses can choose between an emphasis on cost-efficiency, velocity, or sustainability as the main feature of their logistics operations.

By working with us, businesses can also measure the environmental impact of their logistics operations, which they can integrate into their sustainability report and promote to their customers and partners.

We understand that your business relies on timely and cost-effective shipping solutions that don’t sacrifice quality.

Prioritizing our clients’ needs, embracing the uniqueness of every request, and building long-lasting business relationships are at the core of our ethos.

Thanks to our wide range of services, 15 years of expertise, and outside-of-the-box thinking, we strive to offer customized solutions that meet our customers’ specific needs and demands

 

Our goal

Provide businesses with seamless and optimized logistics and freight forwarding operations from, to, and within Asia.

 

ASI Logistics’ core values

👉Customer Centricity👈

👉Sustainability👈

👉People Development👈

/ By ASI Logistics / Logistics & Supply Chain/ • • • • • • • / 0 Comments

International Trade Tips: Navigating Asia’s booming e-commerce logistics landscape

E-commerce revolutionized the Asian logistics industry. How then to master your operations in the region? In today's article, ASI Logistics breaks down everything you need to know and guides you through optimizing your logistics operations in Asia.

The rise of E-commerce has transformed how both B2C and B2B companies operate and disrupted traditional business models.

For businesses involved in E-commerce, logistics, and supply chain are the most strategic aspects of their operations. In today's article, we explore the impact of e-commerce on your logistics operations in Asia and lay out the best practices for managing your logistics operations in the region.

Asia: the region where e-commerce spreads its wings the widest

Following the Covid-19 pandemic, consumers' and businesses' habit of relying on e-commerce to acquire goods has become more engrained in daily practices.

Given the role played by Asia in global manufacturing, it is no wonder that this rise would significantly impact this region's logistics sector.

According to "Asia: The highway of value for global logistics," published by McKinsey, Asia is set to account for 57% of the global e-commerce logistics market growth between 2020 and 2025. They note that "this may make Asia the single-most-important region for global trade and logistics activities going forward."

Furthermore, if e-commerce rises worldwide, it does so even more in Asia. While China already ranks as the most penetrated e-commerce market globally, with the digital economy accounting for more than 38% of its GDP in 2020, other Asian countries are not far behind. In particular, South-East Asia is experiencing a surge in e-commerce, boosted by massive growth in the digital payments sector, the rise of social commerce (the usage of social media and other online media to sell or buy products or services), and the maturing of e-commerce live streaming.

What to pay attention to if your e-commerce business operates in Asia

The rise of E-commerce has led to an increase in demand for transportation services and adapted warehousing facilities in Asia.

To answer this demand, resorting to multiple transportation modes has become vital to optimize operations and reduce costs. For example, a company might resort to a combination of air, sea, and land transportation to move goods from one location to another instead of relying on only one mode of transportation.

In addition, E-commerce has led to an increase in demand for adapted warehousing space. Indeed, the latter needs to answer the prerequisites specific to customers' e-commerce activity and region of operation. Depending on your operations, you might want to ensure you can rely on strategically located facilities or that they offer warehouse management and added value serv

It is important to note that the Asian logistics infrastructure is not uniformly developed across the region. On the one hand, East Asian countries such as China can rely on robust infrastructure and networks and established providers to support the rise of e-commerce. On the other hand, several ASEAN countries' infrastructure and logistics services are yet to mature, despite rapidly developing and attracting investors

You might thus want to adopt agile supply chain practices to respond quickly to customer demand and market conditions.

Hence, we can measure the importance for businesses whose manufacturing operations or retail market happen in the region to rely on trusted logistics partners with solid expertise in freight forwarding from, to, and within Asia, a reliable network, and adapted facilities.

For the past 15 years, ASI Logistics has built a solid presence and expertise in the Asian region. With offices in 6 strategic locations, well-established partnerships, and worldwide network, we enable our customers to benefit from worldwide, flexible logistics and freight forwarding services, tailored to fit their needs.

Our goal

Provide businesses with seamless and optimized logistics and freight forwarding operations from, to, and within Asia.

 

ASI Logistics' core values

👉Customer Centricity👈

👉Sustainability👈

👉People Development👈

/ By ASI Logistics / Incoterms • Logistics/ • • • • / 0 Comments

Incoterms guide #2: What is Ex Works (EXW)?

Who bears which costs and responsibilities under Ex Works? What are the implications of this Incoterm, as well as the pros and cons of choosing it, or the best situations to do so?

Still unsure, or eager to refresh your memory? We answer it all in today's guide!

If your business is involved in international trade and your operations include importing or exporting goods, being aware of the intricacies and implications of your transactions and trade deals is essential. Hence, the importance of having a sound understanding of the various Incoterms that state who is responsible for the transportation and delivery of goods.

After covering FOB in our last Incoterms Guide, today, we tackle another frequently used Incoterm: Ex Works, or EXW.

Which costs and responsibilities are born by the seller and the buyer under this Incoterm, and what are the other implications of this trade agreement? Read this guide!

What is Ex Works?

Under EXW, the seller is typically only responsible for making the goods available at a designated location (typically, their factory or warehouse). They thus only have to ensure the goods are prepared, packaged, and ready to be loaded at the said location on the agreed date.

In turn, the buyer assumes all the costs and responsibilities of transporting the goods to their destination.

Under standard EXW, the buyer is in charge and bearing the risks of loading the goods at their pick-up location, transportation, arranging export/import formalities, and customs clearance, if any.

What about in pratice? A real life example of Ex Works

What does Ex Works imply? The pros and cons

1. Ex Works advantages the seller

Transportation costs and associated risks are borne by the buyer. Hence, this Incoterm favors the seller since they only have to package and make them available at a designated location. In contrast, the buyer has to bear all the costs, responsibilities, and risks associated with the transportation of the goods.

 

2. The buyer is responsible for exporting the goods

In other words, they have to obtain or have in their possession an export license to ship the goods.

 

3. The buyer is responsible for customs clearance in the origin country

This means that if the seller's information is incorrect, the subsequent additional costs are the buyer's responsibility.

4. EXW is one of the cheapest Incoterms for the buyer (even though one of the most burdensome)

EXW can be one of the least expensive options first because buyers can control their costs and select and arrange the most cost-effective transportation option. This includes having the possibility to consolidate purchases from several sellers, i.e., optimizing shipping costs through needing fewer containers. Second, EXW is one of the cheapest options when purchasing goods because the seller bears no costs or obligations and does not reflect them in the pricing.

 

5. The buyer works with trusted representatives and logistics providers

Trusted representatives can make a huge difference in ensuring the goods are made available in the agreed terms by the seller and effectively shipped from the country of origin. Similarly, partnering with a reliable logistics provider is essential for the buyer when they bear all the costs and risks of the associated steps.

At ASI Logistics, our goal is to make navigating your logistics operations easy! Customer centricity is part of our DNA, and so is ensuring you access the most adapted logistic solutions to fit your needs.

We provide you with all the necessary resources, information, guidance, services, and operational reliability to ensure that you keep your peace of mind under Ex Work or any other Incoterm!

Source:

 

/ By ASI Logistics / People Development/ • • • / 0 Comments

The key to smooth logistics amid challenges: People Development

International trade can be complex, but a reliable and knowledgeable logistics provider can make a significant impact. At ASI Logistics, we believe in People Development, building a cohesive and talented team, and promoting creativity and collaboration to drive customer success. Our commitment to empowering our employees built our reputation and is what sets us apart in the logistics and freight forwarding industry.

 

WE EMPOWER OUR TEAM

TO DRIVE YOUR SUCCESS

Global trade can be a complex and challenging arena, with language barriers, cultural differences, and regulations among the many variables that can significantly impact international businesses.

However, ensuring that goods reach their destination on time, in good condition, and comply with all regulations is the most essential aspect of international trade. It lies at the basis of a business's success and can be the difference between profitable operations and those that fall short. Hence, the importance to have a reliable logistics provider with the expertise and experience to navigate these challenges.At ASI Logistics, we understand that our team is the heart of our operations and, thus, the heart of yours. 

We know that investing in our team members benefits the individuals and leads to a more vigorous, productive, and innovative company as a whole. That is why People Development is one of the three core values driving our management.

What is the impact of such practices? We answer this question in today's article!

Why People Development?

We believe in the potential of empowering our teammates and that it is essential to their self-actualization, well-being, and building a dynamic and pleasant work environment.

Our goal: to lay down the perfect environment to develop their career.

As such, we strive daily to create the right setting for our team members to learn new skills, progress professionally, be creative, and take initiatives while ensuring they enjoy work-life balance and enough management flexibility to maximize their working conditions, peace of mind, and productivity.

The Impact of our People Development ethos on our company & your business

Our career development and flexible management practices enable us to develop and retain talents, thus achieving one of the industry's lowest turnover rates during the Covid-19 pandemic. The long carriers hosted by ASI Logistics translate into teams of logistics and freight forwarding experts whose expertise and readiness are the strength of our company.

Having very low employee turnover rates also means our clients enjoy the benefits of having a reliable contact person who knows them and their demands and prioritizes long-term business relationships over short-term benefits. Our practices are sustainable because they are long-term oriented and build the foundation for mutually beneficial partnerships.

At ASI Logistics, we understand the importance of having a reliable logistics provider who can navigate the challenges of international trade and deliver results. Our commitment to People Development is one of the many ways we set ourselves apart from the competition and better accompany our clients in their logistics and freight forwarding operations from Asia!

 

ASI Logistics' core values

👉Customer Centricity👈

👉Sustainability👈

People Development

ASI Logistics' General Manager full interview for Connexions #95 (CCI France Chine Magazine):

/ By ASI Logistics / International Trade/ • • • • / 0 Comments

Incoterms guide #1: What is FOB?

Incoterms act as the foundation pillars of international trade: they codify it while ensuring the legal responsibility of the parties involved is clearly stated. As your logistics & freight forwarding partner, ASI Logistics designed a handy Incoterms guide to help you navigate your international business operations. Today, we tackle one of the most commonly used Incoterm: FOB.

What are Incoterms?

Incoterms, or International Commercial Terms, are a series of internationally recognized trade terms that define the responsibilities of buyers and sellers in international transactions.

They are published by the International Chamber of Commerce (ICC) and specify the responsibilities of both parties in the delivery of goods, including tasks such as transportation, insurance, and the transfer of risks. Incoterms are widely used in international trade and are a key part of any international sales contract.

Why does being familiar with incoterms matter?

Incoterms help to clarify the responsibilities and obligations of both the buyer and the seller in international trade transactions. Using them ensures that both parties clearly understand who is responsible for the goods or tasks, such as arranging transportation, providing insurance, or paying customs or import duties. This can help to avoid misunderstandings and disputes between the buyer and seller.

In addition, being familiar with the implications of a given incoterm used in a contract ensures that the buyer and seller more accurately estimate the transaction cost and make informed decisions about their purchasing and selling activities. For example, if the seller is responsible for arranging transportation, this will impact the overall cost of the goods.

What is FOB?

FOB (Free on Board) is likely to be the Incoterm you will most often come across in international trade.

If two parties agree on FOB terms, it means the goods are the supplier's responsibility until loaded on the shipping vessel, and this responsibility transfers to the buyer thereafter.

The implications of FOB can be further clarified by the terms FOB Origin and FOB Destination.

  • FOB Origin (or shipping point): all the risks transfer to the buyer once the goods are shipped by the seller, i.e., once they leave the shipping point and begin their transport to the customer.
  • FOB Destination: the risk of loss transfers to the buyer when the goods reach them, i.e., the seller bears this responsibility until the buyer receives the goods.

In addition, being familiar with the implications of a given incoterm used in a contract ensures that the buyer and seller more accurately estimate the transaction cost and make informed decisions about their purchasing and selling activities. For example, if the seller is responsible for arranging transportation, this will impact the overall cost of the goods.

At ASI Logistics, customer centricity is part of our DNA. Our priority is to ensure our customers' peace of mind and that they access all the necessary information to make informed decisions regarding their international operations!

/ By ASI Logistics / Logistics & Supply Chain/ • • • / 0 Comments

Sustainable practices: How to ensure your supply chain runs smoothly

If the past three years have taught us one thing about global trade, it is not to overlook the importance of one’s supply chain and logistic operations. Due to the pandemic, freight forwarding went from being international business’ simplest aspect to its most strategic and sometimes even critical one.

As noted by the Harvard Business Review, “logistics can spell the difference between success and failure in business,” with “government regulation, the health of the nation’s transportation system, energy restrictions and technological development” being essential considerations underlying the health of a logistic system.
Hence the importance of the logistic provider your business relies on.

At ASI Logistics, we believe sustainability is the key to ensuring a stress-free supply chain!
Our mission: design the most sustainable solutions to fit your needs!

Sustainable because our vision is long-term

Since customer centricity is an essential part of our ethos, we prioritize long-term partnership, building trust with our clients and partners, and the long-term positive impact of our actions and daily operations over short-term benefits.

We know that fruitful business relationships also stem from our clients having a reliable contact person that knows them and understands their priorities. We operate as an extension of your company and design our collaborations as mutually beneficial partnerships built to last and adapt!

Sustainable because we care about our impact and emphasize efficiency

Economic

Environmental

Social

Our 15 years of expertise, wide array of logistic and freight forwarding services, international presence, and worldwide network enable us to design the most efficient solutions for you to choose from, depending on your priorities. Whether your business calls for an emphasis on cost-effectiveness, velocity, or resource preservation, we optimize our proposals to adapt to your requirements and ensure the success of your projects!

We carefully design these solutions and our operations with environmental sustainability in mind. Over the years, we have carefully adapted our processes to align with resource preservation. In particular, we allow our clients to choose less energy-intensive freight options that fit their standards, we partner with organizations that follow the same principle, increasingly rely on dematerialized solutions, and have adopted practices that minimize our digital footprint.

Finally, we always put people at the center of our operations, not only through the dedication we provide to our clients yet also within our organization.

People development is at the core of our values. The empowerment of our teammates, and ensuring gender equality are central to their self-actualization, their well-being, and the building of a dynamic workspace. Career development and flexible management practices enabled us to achieve one of the lowest turnover rates in the industry during the pandemic. In turn, the latter allows us to ensure that you enjoy the benefits of having a reliable contact person within our company!

Our social commitment also takes the form of supporting organizations and associations who work toward helping local communities and important causes.

👉Discover an example of our engagement 

Our company has been built and operates on the basis of three core values: Customer Centricity, Sustainability and People Development.

In other words, we celebrate customer uniqueness, thrive to ensure the sustainability of our clients' operations, and are dedicated ito empowering the people around us!

No matter the context, ASI Logistics, strong of 15 years of expertise, provides you with the most adapted logistic solution to fit your needs and ensure you enjoy the benefits of smooth operations.

Thanks to our eight offices, including six conveniently located on China's east coast logistic hubs (Shanghai, Nanjing, Xiamen, Shenzhen, Ningbo, and Hong Kong), its two branches in Ho Chi Minh City, Vietnam, and Phnom Penh, Cambodia, and its worldwide network of logistic experts, ASI Logistics accompanies you at every step of your product's journey from, to and within Asia.

ASI Logistics wishes you a happy new year 2023!

Sources:

/ By ASI Logistics / Logistics & Supply Chain/ • • • • • / 0 Comments

China is “Orderly Reopening”: What impact for your supply chain?

In the case of China, the first two years of the Covid-19 pandemic have only seen little to no supply chain disruption, except for the initial outbreak and lockdown in 2020. Indeed, most disturbances were related to the virus’ effects on the main trade lanes to North America and Europe. China thus appeared as a reliable exporter in 2020 and 2021.

What about now? With the country’s zero-Covid policy coming to an end, and as international travel and thus business visits ease, one can wonder what does the future hold?

Let's find out!

Smoother cross-border and inter-provincial operations

Cross-border operations that involve China have become smoother as authorities announced the “orderly reopening” of the land border crossings to “smooth customs clearance” at ports and the end of anti-covid measures for all imported cold-chain foods and non-cold chain items.

Concrete actions by many border cities have quickly followed these announcements.

For instance, the town of Ruili (Yunnan) now allows cross-border drivers to pass directly through the port to deliver goods, whereas before, there were to be different drivers on both sides of the border. The end of PCR test, health code requirements (that slowed down border crossing), and closed-loop system are among the most common changes.  Cross-border land operations are thus to be smoother from now on.

In parallel, the domestic travel code (通信行程卡) going offline has meant that travel restrictions within the country have been lifted.

Both these sets of measures indicate smoother logistic operations within the country and between China and its neighbors.

Living with the virus: what does it mean for your supply chain operations?

Despite this easing of logistic operations, China turning away from the strict implementation of the dynamic zero-covid policy means that supply chain disruptions are likely to occur if workers fall sick.

However, most experts agree that these possible disruptions will not affect supply chains or demand for an extended period of time. According to them, the majority of the end of the policy's prominent effects will wane in the coming months. 2023 is thus likely to be marked by economic recalibration and a gradual return to pre-pandemic normality, all the while the population gets used to living with the virus and resumes regular consumption. 

In short, one can expect short-term supply chain disruptions as the country reopens but an overall return to normalcy in the longer term, aided by smoother domestic and cross-border logistic operations.

No matter the context, ASI Logistics, strong of 15 years of expertise, provides you with the most adapted logistic solution to fit your needs and ensure you enjoy the benefits of smooth operations.

Our strength? We are customer centric and know that your needs and demands require tailor-made solutions, adapted to your business and the current environment.

Thanks to our eight offices, including six conveniently located on China's east coast logistic hubs (Shanghai, Nanjing, Xiamen, Shenzhen, Ningbo, and Hong Kong), its two branches in Ho Chi Minh City, Vietnam, and Phnom Penh, Cambodia, and its worldwide network of logistic experts, ASI Logistics accompanies you at every step of your product's journey from, to and within Asia.

ASI Logistics wishes you a happy new year 2023!

Sources:

 

 

Supply Chain shift from China to South East Asia
/ By ASI Logistics / Logistics & Supply Chain/ • • • • • • / 0 Comments

Production shift toward S.-E. Asia: What does it mean for China?

Supply Chain shift from China to South East Asia

Over the past decade, more and more manufacturing operations have been switching away from China and toward South East Asian countries such as Vietnam.

This phenomenon is rooted in an increase in Chinese labor costs, the rising importance of the South East Asian market, and China's new economic orientation centered on higher value-added products and the service sector.

These past weeks, the recent adjustments of the country's zero covid policy have sparked new series of comments on this trend, as some wonder what will the impact of this policy shift on production and logistics be.

Is China's importance in the global supply chain lowering for good?

Not quite! While China's role is definitely going to evolve, its prominence in the global supply chain is unlikely to wane.

Indeed, while some labor-intensive industries and electronic products manufacturers have already started to relocate to South East Asian countries, Vietnam in particular, China remains its biggest source of import, especially when it comes to raw materials and core parts.

Analysts thus note that the two countries' value chains will further intertwine in the future, fostering renewed cross-border exchanges between the two countries.

Furthermore, over the past decades, China has developed a robust and well-connected transportation network in terms of land, sea, or air routes.

As such, whether in terms of import or export, China can rely on its logistic web to ensure its centrality in global trade. As noted by Xiaomi's spokesperson, "currently, no overseas country can replace China's supply chain clusters." Indeed, China has become a central nod to logistics operations not only in the Asian region, but worldwide.

Finally, following the shift in China's zero-covid policy, analysts note that the logistics and business relations between South East Asian countries and China will only become smoother in the future. Indeed, as cross-border movements and quarantine policies are easing, international trade in the region will gradually recover its pre-pandemic state.

How to ensure smooth supply chain operations in the region?

As manufacturing operations increasingly shift toward South East Asia, finding a logistic partner with expertise and presence in your key supply chain locations is essential.

ASI Logistics Cambodia

Thanks to its eight offices, including six conveniently located on China's east coast logistic hubs (Shanghai, Nanjing, Xiamen, Shenzhen, Ningbo, and Hong Kong), and its two branches in Ho Chi Minh City, Vietnam, and Phnom Penh, Cambodia, ASI Logistics accompanies you at every step of your product's journey.

ASI Logistics teams wish you a happy new year 2023!

Sources:

Chinese smartphone maker Xiaomi starts production in Vietnam to boost delivery efficiency. Global Times. (n.d.). Retrieved December 30, 2022, from https://www.globaltimes.cn/page/202207/1269827.shtml

Explainer: How no covid-zero in China could impact Vietnam. Vietnam Briefing News. (2022, December 12). Retrieved December 30, 2022, from https://www.vietnam-briefing.com/news/what-no-covid-zero-in-china-could-mean-for-vietnam.html/