Question

Although DCHS has a relatively good base and has developed into a powerful logistics company in the Pearl River Delta, it has also faced some problems. The development of the TPL industry has increased competition. DCHS is facing some challenges: how to expand the business, how to develop new customers, how to maintain long-term cooperative relationships with old customers, how to face the pressure from competitors in price and services. These concerns pushed DCHS into changing from a simple logistic provider to a TPL provider. DCHS’s logistics team pays much more attention to the value-added services the company can provide, considering it to be one of the company’s competitive strengths.

The products inside a bonded warehouse are equivalent to those outside of China: they do not need to go through the import procedure, and thus do not have to pay import duty, they do not need to go through the export procedure when they are later exported. During the period between import and export, the law permits the carrying out of many value-added services in the bonded warehouses. Additionally, the cost for the rent of the warehouse in China is much lower than that in other developed countries. The following example illustrates this situation. Dongfang shoe factory in Dongguan exported a batch of sport shoes to Germany in June, 2006. Due to a slight defect in appearance (some tiny grey plastic particles stuck on the bottom of the shoe soles) they were regarded as unsuitable when the shoes arrived in Germany. The factory faced two choices: one was to entrust a local factory for second processing but the processing cost was too expensive and surpassed the commodity value. The other was to go back to China, but it would then have to go through the import and export process again. At that time, the shoes had been returned to Hong Kong with a storage cost of 500,000 yuan per month. The factory owner, Mr Xu, saw an advertisement about Sims in a harbor of Hong Kong and contacted the company for help. DCHS first transported the shoes to the bonded warehouse, which only costs 80,000 Yuan per month to rent, then organized workers to clean out the shoes and had them repackaged. Mr Xu soon found another customer and sold them to France. DCHS’s successful solution was based on its advantage of an imported bonded warehouse and value-added services, and solved the customer’s problem.

strengths and the weaknesses of DCHS?

What are the valued-added services provided by DCHS?

Answer 1

Answer:-

strengths and the weaknesses of DCHS?

Strengths :

Powerful logistics

Client mindfulness

Consistent import send out progress without charges

More noteworthy command over capacity, bundling and transportation

Higher participation

Better system structure

Better quality control, repackaging, counseling as worth included administrations.

Weaknesses :

Absence of development information

Absence of client securing information

Connections the executives with client

Overseeing volumes

Overseeing serious prices

What are the valued-added services provided by DCHS?

Value added services by DCHS were :

Decreased expenses

Consistent transportation

Repackaging

Sorted out amd perfect arrangements.

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