A European customer had the following problem: He had entered into a delivery agreement with his customer in India and agreed on delivery quantities and delivery dates. The first two or three deliveries largely went according to plan, but then the problems began: His customer wanted the goods faster and requested additional quantities. In another case, demand suddenly dropped, and the delivery frequency also decreased significantly.
The customer quickly realized that distant sales markets such as the Indian market are difficult to manage from European production facilities, especially when such fluctuations occur. The only operational solution here is to set up a local warehouse. This allows for rapid response to fluctuations in demand and avoids losing customers because of inability to deliver quickly enough. Such a solution is generally expensive and difficult to manage. However, if the decision is made against this and the Indian market continues to be supplied from Europe, customer dissatisfaction will be unavoidable without local product availability. This means that a long-term growth strategy in an emerging market cannot be implemented.
The optimal alternative is a chemical expertGo East Advisors is a managed bonded warehouse. One such solution is now available in India, tailored to the chemical industry. With locations near the economic capital of Mumbai and close to India’s largest port, the advantages are obvious: Firstly, the goods are already on site in India and thus reach the customer more quickly. Secondly, they can also be easily retrieved or transported to other Asian countries. This allows customers/partners a high degree of flexibility, for example in the event of fluctuations in demand. At the same time, costs remain manageable, as neither customs duties nor import sales taxes are incurred until the sale. Experience shows that this solution also provides customers with greater (supply) security, since they know that the goods are already in India. This also eliminates the risk of customers switching to a competitor due to delivery problems.
Are you also looking for a solution like this? Then contact us. We would be happy to discuss the individual benefits of using a customs warehouse with you in a personal meeting.
