Warehousing services help leading Japanese consumer goods company increase efficiency in Taiwan

Challenge

Among the major challenges faced by the company in Taiwan was the increasing real estate prices, human resource costs and fuel prices. With these, maintaining or building new warehousing facilities was becoming uneconomical for the company.

Also, the company needed to ensure its facilities are constantly compliant with local regulations on fire safety and pest control. The selected business partner, had to also assure the company that any relocation to a new warehouse would not affect the operations, storage and distribution of more than 11,000 pallets of goods.

Approach

The first step was to set up an experienced team in handling warehouse relocation operations. DKSH also offered an extendable space plan to fulfill the company’s inventory variation during the peak and low season as well as future business growth.

While our advanced warehouse provided the best possible facility against potential risks like fire, earthquake and flood, we also handled co-packing services and shipments to their key clients across Taiwan. DKSH also provided manpower assistance to load containers for export shipments to Japan, Thailand, Hong Kong, Singapore, Malaysia and Australia.

Result

The company was able to reduce manpower operations for its distribution, warehouse and co-packing facilities in Taiwan. Another important key takeaway from this partnership was that the company can continue to be in full compliance with all required safety regulations.

As a result of this successful warehouse outsourcing partnership, DKSH hopes to also explore the possibility of working with the company’s other logistics operations in Taiwan. This may also include other business areas like Healthcare.