China Warehouse Solutions: Everything You Need to Know
Congratulations! Your business has grown so much that you can no longer handle order fulfillment and storage on your own.
You need a warehouse that provides a centralized location to manage, store, and distribute products, but where should you get one?
If want to save money and easily ship your products across the world, China warehouse solutions might be ideal for your company.
It may seem daunting to trust someone overseas to handle your most important business operations, but it actually comes with many benefits. You just need to understand the process.
Keep reading to learn everything you need to know.
What Are China Warehouse Solutions?
You’ve probably come across China warehousing if you are interested in shipping goods from China to save money. China warehouse solutions are located nationwide and provide an extensive space for storing products.
Warehouses might be owned and operated by logistics companies, manufacturers, or wholesalers.
If you are trying to become a global operation, warehouse outsourcing to China is a great solution. China offers benefits within the global supply chain with its extensive infrastructure network.
They also offer distribution and shipping services to businesses and customers. You’ll be able to store your goods in China and export them to other countries as needed.
Globalization has led to fierce e-commerce competition. Warehouse service companies in China are continuously improving their competitiveness to benefit companies like yours in a hot market.
Benefits of China Warehouse Solutions
Retailers and online sellers can benefit from China warehouses. When compared to warehouse management in other companies, China is the ideal choice for these reasons:
Lower Costs
Lower costs are a big perk for China warehouses. China can offer some of the lowest prices globally because of:
- Favorable tax policies
- Affordable raw materials
- Low labor costs
China’s government offers incentives to warehouses constructed and operating in special zones. These incentives lead to higher business income and lower VAT (Value Added Tax).
Compared to other countries around the world, China is known for reduced import and export taxes that benefit businesses.
If you manufacture your products in China and store them in Chinese warehouses, you can source raw materials locally. This leads to lower transportation costs because raw materials don’t have to travel as far.
China has low labor costs because operating a warehouse in the country is less expensive than it would be in other areas around the world.
China is a top choice for global supply chain management for shipping, warehousing, and manufacturing because of these tax incentives sponsored by the Chinese government.
Faster Delivery
If you are looking for business solutions that increase shipment speed, warehousing in China can help. China has recently focused efforts on improving the infrastructure network.
They are constructing modern highways, airports, seaports, and railroads that can help ensure faster turnaround times.
For e-commerce companies specifically, using a warehouse in China leads to fast and reliable delivery that meets customers’ expectations.
Because many warehouses are located near airports and ports, companies that use Chinese warehouses can efficiently ship goods to customers around the world.
Supply Chain Management
The supply chain begins when raw materials are collected and ends when your company’s product is delivered to the customer. China warehouses can help throughout the supply chain process.
China warehouses provide a centralized location for inventory management leading to:
- Better inventory control
- Shorter lead times
- Better customer service
If you want to avoid overstocking or understocking your warehouse, a 3PL inventory management warehouse in China can help. This will improve your supply chain management overall.
Warehouse Management System
A Warehouse Management System (WMS) allows companies to get a clear overview of inventory at all times. China warehouses will use this software to automate the shipping process so you can track your products in real-time.
A cloud-based WMS works to ensure your inventory and supply chain process is up to date so you have complete visibility into operations even if you aren’t physically there.
As demand changes, the system will allow you to quickly and easily scale your supply chain.
Quality Control
A warehouse and storage facility in China offers the opportunity for quality inspections to be held at a single location. A central location for quality control inspections can save costs and make your supply chain more profitable.
Having a warehouse that implements a quality control program allows your business to catch issues early on and limit future mistakes.
Quality control can involve inspecting products, but it is much more than that. It aims to tighten up inefficient processes or diagnose a specific problem to increase warehouse efficiency.
Various Services
When you think of warehouse solutions in China, you likely think of storage, but some warehouses offer various services that can benefit your business.
Warehousing is the best option for avoiding a time gap between production and consumption. When you are waiting to ship products, having a warehouse for storage is essential to the supply chain.
A China warehouse will also offer retail distribution and pick and pack services before shipping. Once the warehouse staff packs and ships the order out, your customer will receive their product within the expected turnaround time.
A warehouse will ship goods to the chosen carrier and can consolidate shipping to reduce costs and help with smaller orders.
If you offer customers a product return policy, the warehouse will handle this process for you as well. Your customers will send back the product to the warehouse where the replacement process will occur.
Depending on the warehouse you choose, they might also offer cross-docking solutions that facilitate quick backorders and fulfillment. Cross docking can save time and money on product management, storage, labor, and delivery.
With this service, you eliminate the middleman, lower costs, and ship your items directly from the supplier to the customer.
Types of Warehouses in China
Coming to an ideal agreement with a warehouse involves knowing the different types of warehouses. We break down each of them to help you decide which warehouse is right for your business needs.
Public Warehouse
A public warehouse in China provides storage and distribution services to individuals and businesses.
These warehouses are owned by third-party logistics (3PL) providers or companies that specialize in supply chain and logistics management.
Public warehouses are a cost-effective option because they offer companies the ability to store goods as needed, whether that be on a short or long-term basis.
Not only do they offer flexible storage options, but they come in a range of sizes and have different configurations. There’s a high chance you can find a public warehouse in China that meets all of your needs.
Private Warehouse
A private warehouse in China gives businesses complete control over storage and distribution. They are owned and operated by individual companies for their own distribution and storage needs.
You can customize a private warehouse to meet your specific preferences. You can change the sizing and configuration of the warehouse, and layout of the storage space, and implement advanced technologies of your choosing.
If you are familiar with running your own warehouse, owning a private warehouse in China might be a good idea. You will have to spend more money on hiring staff and getting the process started.
Bonded Warehouse
A bonded warehouse is approved by the Chinese government to store imported goods before they are cleared by customs.
These are goods that are in a “suspended state” which means they can’t be subjected to import taxes, duties, and other fees.
Logistic companies generally operate bonded warehouses, so they are a form of public warehousing. These warehouses are strategically placed near major ports and airports to streamline the import process.
There are two bonded warehouse categories to know about:
- General bonded warehouses
- Special bonded warehouses
General bonded warehouses are open to all importers and can store a variety of goods.
Special bonded warehouses are designed for specific types of products like luxury goods, pharmaceuticals, or electronics. They offer specialized facilities and services to meet unique handling and storage requirements.
Fulfillment Center
Any e-commerce business owner is going to be familiar with fulfillment centers. These are large warehouses or distribution centers where businesses store inventory, process orders, handle shipping, and complete returns.
Fulfillment centers use automated systems to pick, pack, and ship products efficiently. The pick-and-pack method is how a China fulfillment center picks and prepares items in stock for shipment.
A fulfillment center will hire specialized pickers to look up an item’s location against the order form. They take the item out and ship it to the packing station.
The packing station is responsible for confirming the order form and packing based on the goods in the order. They will then attach the packing list and paste the delivery address of where the goods are to be shipped.
Your store can fulfill orders quickly with this type of warehouse in China to increase customer satisfaction and reduce cancellations and returns.
Shipping From a China Warehouse: Benefits and Challenges
As with anything, there are pros and cons to shipping from a China warehouse, and it’s essential to weigh them to make a knowledgeable choice for your business.
Warehousing and shipping from China come with many unique benefits, but it could be unknown territory for your company. Let’s start by discussing the benefits.
Benefits of Shipping From China
Startups and seasoned businesses can enjoy the perks of shipping from China warehouses, including:
- Wide range of suppliers
- Access to advanced technologies
- Efficient transportation infrastructure
China has a well-known reputation for having a diverse and large manufacturing industry. Business owners can find anything they need in China.
With a wide range of suppliers, you have options when it comes to quality, pricing, and other factors.
China is one of the world’s top research and innovation areas. When you upgrade your supply chain by using a Chinese warehouse, your business will gain access to advanced technologies and expertise unavailable in other countries.
As we mentioned before, China has an extensive transportation network that they are continuing to build on. Because of the efficient transportation infrastructure, shipping your goods anywhere in the world is easy from China.
Challenges of Shipping From China
There are challenges of shipping from China that you might be willing to overcome to reap the benefits. These are the factors you need to be aware of to ensure maximum success through warehousing:
- Language barrier
- Regulations and compliance
- Intellectual property protection
Chinese, and all of its varieties, is the most spoken language in the world but is considered the hardest language to translate by most translators.
When you work with a third-party company for warehousing in China, you will be met with representatives who speak the language you are most comfortable with.
China is favorable for warehousing and distribution because of its low costs. It’s a great place for shipping, but it got this way because of strict compliance and regulations.
It’s important to do your research on the relevant laws and regulations before choosing a warehouse. You could also outsource your supply chain to Shield Works which employs legal and compliance experts in China.
Lastly, some businesses face counterfeiting and piracy issues when shipping products from China. Raw materials are cheap in China so some suppliers might try to copy designs from other manufacturers to stay on top of trends.
When you work with a fulfillment center like Shield Works, you can monitor your products and check for any fake goods. Expert employees will guide you on how to protect your intellectual property and report potential violations.
Work With a Trusted China Warehouse Partner
Outsourcing your warehousing to China might seem like a daunting process if you’ve never done it before. However, working with a trusted China warehouse partner comes with many benefits.
Shield Works provides customized warehousing solutions to an international client base. Our highly skilled management team has 16 years of China-based manufacturing experience.
You can trust that we are the ideal choice for your business supply chain. Get in touch with us now to start reaping the benefits of China warehouse solutions.