One of our European customer faced the following problem: He had a large order and a corresponding supply arrangement with his customer in which supply volumes and supply dates had been fixed. This went well for the first two / three supplies but then problems started: His customer wanted more material at earlier dates. In another instance, less supplies were required.
Our customer quickly realized that markets far away from the European production sites, like the Indian market, can hardly be managed from Europe without frictions, especially if demand is fluctuating. As an operational solution one can set-up a local warehouse. With such a warehouse, companies could adjust to fluctuating market demands much faster, catering well to the customers’ needs and avoiding to lose orders or even customers. But such a solution is expensive and difficult to manage from an HQ in Europe. However, giving up this idea and trying to supply the Indian market from Europe means accepting the unhappiness of local customers. As local customers will not deem the company as reliable, it will not be possible to gain a growing market presence beyond a certain level.
Therefore, the best alternative will be a bonded warehouse, managed by the chemical experts from Go East Advisors. This is now available in India with customized services adapted to the needs of the chemical industry. Localized near the commercial capital Mumbai and close to the major harbour of India the advantages are obvious: The products are already in India and thus closer to the customers, but if not needed these products can easily be taken back or send to other Asian markets. With this set-up we offer our partners a high flexibility in case of demand fluctuations. At the same time the costs are reasonable, as till the sale of the products there won’t be costs for import taxes nor VAT. Our experience shows that our partners’ customers also feel more comfortable as material is quickly available when needed. So, the risk that customers buy from competitors is also reduced.
Are you also looking for such a solution? Then please contact us. We would be happy to outline the individual advantages for your company in using our dedicated bonded warehouse