/ 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👈

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/ 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!

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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!

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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!

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Supply Chain shift from China to South East Asia
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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/