May 24 2018 - 11:09 am


International Project Management: Transfer of stock offshore
Following a decision to close its UK production facility and outsource all manufacturing to China there was an interim requirement to manage the transfer of £1.7M stock of components and finished goods from the UK to CEM in China. Until the stock was receipted into the facility in Suzhou onto the BAAN system the CEM would have no system visibility of components and was likely to reorder from the open market delaying the release of cash tied up in Ex UK stock holding and no record of unallocated stock existed. The remit was to release £1M cash from stock by end of QTR 3.

An unallocated stock model was built on Excel to capture the stock on the containers , the declared consignment stock of finished goods held at Suzhou plus any agreed buffer stock orders placed on a 12 week delivery . On arrival of the containers in Shanghai it became evident that the physical shipped quantities did not match the manifests and a number of obsolete parts had also been shipped. This created a major problem for the CEM and Chinese Customs as they could only import from WGQ the duty free port those items which were recorded on the manifest and those where demand was identified ie no obsolescence.

Discrepancies on over 550 lines were identified. A solution was put in place were all disputed items were moved to Hong Kong and a third container manifest generated to allow re-import into China with any obsolete stock removed and disposed of in Hong Kong.

A project to phase in the delivery of components and finished goods into the CEM warehouse was drawn up and implemented. By the end of August £1.2M of container stock had been utilised to fulfil orders and production demand.
    Transform Logistics specialise in providing support and guidance to organisations that have identified an immediate need to implement change and can provide independent evaluation and assessment of issues affecting underperforming businesses, or act as a "Sounding board".

    Transform Logistics provides Interim Management who are highly skilled, immediately impactive and able to deliver results with pace and momentum.

    Transform Logistics are able to offer a full range of Support services including Tender Design and Evaluation , RTT document preparation , Supply chain and procurement reviews, and due diligence support.

    The full range of our expertise can be appreciated by browsing the case studies of successfully completed assignments across a range of sectors including Logistics, Business Services, Automotive and Manufacturing and Supply chain.

    Transform Logistics actively encourage you look at the testimonials that we have received from our satisfied clients , who have entrusted us with their business.