Travelling from Ancient Routes to Cyber Tech
The oldest profession is: supply chain. Nowadays, we find out about shipping disruptions on the news, from our phones or desktops and messages from the port.
Modern technology brings us online rates, booking and container tracking. And like any other industry, AI and cyber attacks will follow.
Costs you Cannot Avoid
The bottom line, supply chain always cuts into profits one way or another.
Insurance, offshore shipping, and delivery are necessary costs, and they fluxuate with market conditions. Other costs to consider are based on:
- Customs duties and taxes: costing 2 to 20% of the value of the goods. And Value-added tax (VAT) depending on the country.
- Handling fees: 2 to 5% of cost. Includes, loading, unloading, warehousing and distribution.
- Storage: from 3 up to 30% of supply chain costs, depending on the type of goods. Obviously, refrigerated and freezer spaces are more costly.
- Occasional trade tariffs: this years tariffs on some steel products are 25% in the US.
It's almost 2025 and one thing on everyone's mind is the tariffs on specific goods from China to the US. Steel goods are tariffed, they have risen dramatically to 25%.
What other disruptions are we looking at in 2025? Continued loss of the Suez canal shipping route, US East Coast dockworkers port strike, and even random factory fires and extreme weather will disrupt shipping in 2024-2025 (hurricanes in the Eastern seaboard and the Gulf Coast)!
That Attention Pays Dividends
Big News, Simply Metals has procured a new factory in Vietnam. Making the decision to add a near-shoring manufacturing facility in Vietnam is a major step and substantial investment. A lot went into its planning over the past year.
From the Vietnam facility, you will save a bit on shipping costs, and US importers will get the benefit of almost 0% duties from Vietnam-origin products.
Our global effort will strengthen Vietnam's already growing manufacturing base. Creating jobs, and improving skill development, Simply Metals will provide training and collaborate with local businesses. Always, we offer the same great design services from our Chinese engineers, dependable QA and customer support you get from Simply Wire Shelving.
The new Vietnam factory offers a definite solution to some of the top supply chain risks: including a major cost reduction for US importers. And a new source of suppliers of materials, labor and skills. Europeans will benefit from the EU free trade agreement with Vietnam.
Be Strategic and Find Ways to Adapt
So, how to mitigate and improve the supply chain to avoid disruptions? First of all, the port of Guangzhou handled 25 million twenty foot container units in 2023. And it's growing, showing the productivity and reliability of Chinese products and customer support. However that resilience isn't always enough to buffer disruptions like trade tariffs.
At Simply Metals, Supply chain is on our mind. We take each container of storage and organizing shelves seriously. We hand pick the most efficient routes for each container by destintion and timing based on your schedule.
For your strategic advantage, contact Sophie today.
Sophie Yim
or Email: sophie@simplywireshelving.com
Site: www.simplywireshelving.com
Mobile/Messaging:86-186-8005-9866
Tel: 86-769-22200111
Office: NewBase Industrial Park, Nancheng District, Dongguan, Guangdong, China
Huizhou Factory: Hongtian Industrial Zone, Xinxu Town, Huizhou City, Guangdong Province, China 516223
Vietnam Factory: Lot 1E4, 1E5, CN8 & CN10 St, Tan Binh Industrial Zone Tan Binh Village, Bac Tan Uyen District, Binh Duong 820000 Vietnam