The new edition of the Hong Kong Trader has an article of a company working on the problems of cold chain logistics in China.
So in summary, over the last few months, I've blogged on the problems of cold chain logistics economies of scale, traceability, and specific solutions to the problems. And the leading companies in the field are working on the same problems....
I love it when the content of my courses is cutting edge! The online exporting food course is starting April 15, secure a seat by registering here now.
Feel free to forward this by email to three of your friends.
Because of the lack of cold chain logistics, the damage rate can be as high as 25 per cent. That’s compared to the less than two per cent spoilage rate in our Hong Kong business. If there is any waste, we have to compensate our principals. Two per cent is too high for me because it means two percent less from our net profit. So there is a lot of potential for us to reduce the waste by introducing a proper cold-chain management to the operation.That is competitive edge. I've been blogging cold chain logistics here... I've been blogging traceability here and...
So that requires a mechanism. Two years ago, Dah Chong Hong and the University of Hong Kong jointly developed a food tracking and tracing system. Using RFID and QR technology, the system will allow us to monitor where the goods are coming from.O my... tracking 100% so far...
This tracking system can track produce from farm to table, providing real-time information across the food supply chain. In the Pearl River Delta, we’ve carried out trial runs for a couple of months.
I think the economies of scale are very important. That’s why we have to do our own marketing of our product portfolio. On one hand, we are a service company, a 3PL provider, on the other hand we have our own products that enable us to create economies of scale. That’s why we can import a lot of Taiwanese food using our proper cold- chain management to deliver to our customers.Exactly... and that is why we developed MOQ FOB tactic, to deal with the reality of the test order and the requirement of cold chain logistics.
So in summary, over the last few months, I've blogged on the problems of cold chain logistics economies of scale, traceability, and specific solutions to the problems. And the leading companies in the field are working on the same problems....
I love it when the content of my courses is cutting edge! The online exporting food course is starting April 15, secure a seat by registering here now.
Feel free to forward this by email to three of your friends.
3 comments:
storage is as essential as trade. Also it helps in making new employment opportunities.
Import Export Business
Hi John,
Is it possible to succeed to have a business situation where I'm (being an American and U.S.- based) exporting a product from one foreign country (say Australia, Germany or UK) from a supplier to another country (say China)?
Is there anything special (e.g., only having to work with U.S. customs brokers?) in being in U.S. that we should focus on only considering exporting U.S. products or can your taught techniques (MOQ FOB) work regardless where the supplier and customer are located?
You've complicated the question, let's see if I can break it down.
Multinationals trade that way all the time, but moving massive amounts of commodities around and booking profits here to escape taxes there is the payoff. Toblerone can do it with Toblerone Chocolate, Apple with iPads.
At the small business level you must provide a value recognized instantly by the buyer and the seller (not buyer or seller, but both.) Your participation must be more valuable to them than their money. If you cannot state precisely what that is, expect your target market to fail on this point too.
You serve customers. In your scenario, how will you serve customers in a 3rd country from USA?
Why would you working from USA serve a Japanese market with product from Australia better than an Australian?
Why living in USA would you not bring unmet foreign demand to USA products?
When there is a problem, why will anyone cooperate with you in a solution since you are in USA? Better you get burned and everyone proceeds without you.
If you are planning on exclusives, they do not exist in international trade. It is possible to pay millions for an exclusive, I've seen it happen, but it has no effect. Anyone who pays for an exclusive, or bets on an exclusive, loses.
I'll also say this... the scenario has the implausibility of a scam, in which someone in Country One asks a USA persons to arrange a shipment from Country Two to Country One, or vice versa. If someone has suggested this deal to you, expect to be scammed. (The hundred times I've seen that before, in every instance the person says to me, "No, that's not the case." It turns out to be the case.)
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