Overseas warehousing

An overseas warehouse offers flexibility to an exporter on all fronts and enhances business growth opportunities. Overseas warehousing works in both scenarios – exporters with a legal entity in the destination country or with no legal entity in the destination country.

Rhenus India as your partner for overseas warehousing

Why choose overseas warehousing?

  • India is a major manufacturing hub for automotive, engineering goods, pharmaceuticals, chemicals, processed foods and garments
  • Indian government’s push to ‘Make in India’ and export to the world
  • Most Western markets depend on imports for the above, given low-cost sourcing and shifting of manufacturing to emerging countries
  • Speed to market will determine demand from customers
  • Price competitiveness is lost due to uncertainty in supply / transportation
  • Limited exposure to customers as MOQ limits small customers from being approached
  • Certain industries, e.g. automotive components, bulk drugs and chemicals (raw materials), need JIT delivery, failing which leads to line stoppage, penalties, loss of business or even the customer
  • For processed foods, garments and pharmaceuticals, obsolescence due to the use-by date or change of season can lead to losses and / or product returns, etc.

Advantages to exporters

  • Short lead times / just-in-time delivery (JIT)
  • Small order fulfilment
  • Better reach to smaller customers
  • Better production planning / outbound supply chain planning and cost optimisation
  • Better planning of fast-moving / slow-moving SKUs
  • Choice of multiple warehousing locations (country-specific or region-specific)
  • Fulfil line feeding / sequencing requirement of customers – adding value to the end customer

Advantages to buyers

  • Little to no inventory planning – give a broad annual or quarterly requirement to the supplier
  • No inventory holding
  • Less chance of line stoppage, stock-outs and loss of customers
  • Short lead times / just-in-time delivery
  • Milk run deliveries to multiple sales locations
  • Ex-warehouse pick up by buyer-nominated transporter
  • Small order fulfilment
  • Limit product obsolescence / out of date products
  • Shorter payment cycle / lower financial cost

Any questions?

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