Case Studies

Retailer saves on import duties, taxes, rent and wages

A large Ecommerce retail operator exporting goods to the Australian market approached MC Trans recently to assist with the creation of increased efficiency in their supply chain. The retailer had warehouse facilities in Australia and were struggling in light of increasing commercial rents and high Australian labour costs, all this on the back of declining sales.

MC Trans viewed the existing supply infrastructure and quickly identified that it was not only rent and labour that was creating a cost burden for the company but furthermore the retailer was paying excessive amounts of tax and duties on the goods entering Australia.

As most imports into Australia valued under $1000AUD are Goods and Services Tax (GST) Free MC Trans restructured the existing supply model and provided a new logistics solution for the goods coming directly from China and Hong Kong. New warehouse facilities for the exports were established between Hong Kong and China further lowering costs for the client. The customer realised several hundred thousand dollars of savings by the second year with no loss in delivery efficiency and product punctuality.

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MC Trans removes conflict from supply chain and importer reduces costs

In 2009 MC Trans was approached by a medium size business requesting an investigation into any financial leeks in their supply chain. The company imported all their products from China into Europe, North America and South America

Analysis of their existing logistics solutions uncovered that the suppliers had used logistics companies with conflicts of interest and who specialised in the very product that the company was selling, hence operating as a virtual cartel or oligopoly on supply.

MC Trans worked with the company to remove the conflicts of interest via alternative logistics arrangement that ended up saving the company 200,000 in the first year alone.

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Over-sized tyres made to fit

Oversize freight tyres made to fit for machinery and over dimensional items can be a tricky business, especially when those items don’t fit into standard shipping containers. A recent project required the MC Trans team to arrange collect and packing of eight machinery tyres for shipment from the USA to China for specialisted machinery.

The major challenge was that the tyres wouldn’t fit into a standard container, which meant a specialised container was required to ensure the tyres could be transported safely. Operations Director Patrick Wong arranged for packing into a specialised 40 foot open top container and because the tyres were still over height by 60cm a marine surveyor was required to inspect the loading and ensure the tyres were properly secured for shipment. “Any items that can’t be completed enclosed will always need specialist treatment. These tyres needed to be secured in the open top container to make sure they wouldn’t budge in transit. It can be quite a problem if items aren’t secured properly and our marine surveyors job is to make sure that there’s no chance of accidents happening,” says Patrick.

report was issued deeming their suitability for marine transport. Clarkes organised transport to the wharf in the USA to meet booked sea freight services within the required time frame.

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Opening up effective logistics for multi-continental markets

A Taiwanese company looking to open up new markets to distribute electronics throughout Europe and the USA approached MC Trans. To be successful it was imperative that the shipping process was transparent for the buyer and that they would not have to deal with price uncertainties, shipping or customs related issues. It was also important that costs were kept to a minimum so that the product would have an attractive price point and that delivery times would be controlled. Consulting with our freight forwarding specialists a customised solution was developed to meet the vendor’s specific goals for the European and American market. Our logistics solution included: guidance on marking, labeling and packaging, completing export documentation, shipment consolidation and transportation management, rate negotiation, cargo insurance, export reporting, shipping to consolidated entry points, customs clearance, warehousing and fulfillment from point of arrival throughout Europe and the USA.

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Pick n Pack solution bypasses high domestic charges

A commercial furniture retailer in the United States was buying ready made furniture domestically and was looking into creating a distribution flow from South China to the USA. They required an economical solution for high selling'workstation' with varied configurations that could be made in kit form. They originally envisioned that the product would be sourced and shipped from individual component suppliers and then assembled in the USA with obviously higher destination costs though they saw no other way. MC Trans recommended a “Pick and Pack” solution be implemented with completion of the final product to be enacted at origin - a dedicated warehouse facility in China. The Client gained a lower landed cost by sourcing in asia then assembling than buying domestically and building in the US. The project enabled shipment of floor ready products by-passing the destination distribution Centre and shortening total supply chain lead-time. We set a precedent that can now be employed for future projects and promotions of other product lines they have. A cost efficient alternative solution. The project delivered an improved shopping experience and convenience for the end user/consumer.

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