YQN's Logistics Solution for Large Home Appliances Export

to Reduce Shipping Costs During Christmas

In 2022, Black Friday sales hit a record $9.12 billion. Despite inflation and inventory challenges, many businesses are refining operations to cut costs and boost efficiency to achieve long-term development. In terms of logistics services, more cross-border e-commerce sellers are opting for one-stop international logistics services to enhance the stability of their supply chains and reduce overall logistics costs.

In South China, a local trading company began venturing into the large-item market in early 2021. However, due to market misjudgments about the market and unfamiliarity with the large-item supply chain, unexpected costs emerged. These costs included exorbitant sea freight charges due to untimely booking, high demurrage fees due to delays in securing overseas warehouses, and additional storage fees resulting from slow product sales. Consequently, their exploration of the large-item market in 2021 concluded with unsatisfactory results.

In early 2022, this company initiated a partnership with YQN, a prominent one-stop logistics provider, offering strategic solutions for the cross-border transportation of large and medium-sized items. A comprehensive logistics solution encompassing sea freight, warehousing, and delivery was tailored to specifically address this client's needs. This initiative significantly enhanced supply chain stability and adeptly managed overall expenses. Consequently, this Chinese trading company experienced structured expansion during the initial half of the year, culminating in sales surpassing the $10 million mark.

Upon a thorough review of the process, the seller encountered three notable transformations:

1. YQN provides entire process shipping avoiding unattended intermediaries

The customer entrusted YQN to handle the entire process from initial sea shipping, overseas warehousing, to last-mile delivery. Leveraging the YNQ's comprehensive resources throughout the logistics chain, this approach bridged gaps between logistics stages, avoiding unattended intermediaries. It allowed for comprehensive quotations of resources at each stage, ensuring the most cost-effective logistics solutions.

YQN Logistics Advantages:

• Seamless one-stop logistics platform ensuring seamless services between each stage
• Quality supplier resources for efficient trucking, unloading and customs clearance at docks and ports, reducing demurrage and container storage fees.
• Exclusive expedited express accounts in North America with industry-leading discount pricing.

2.  "Full Usage of Warehouse" Service Increased Stability, and Predictability:

This client's demand for overseas warehousing is consistent and long-term, with a large volume of goods. Traditional tiered billing would lead to higher costs for longer storage periods.

After comprehensive analysis of the actual warehousing situation and budget costs, this client adopted YQN's North American whole usage of warehousing and package service. This secures warehouse capacity ahead of time, ensuring warehouse availability during peak and off-peak seasons. With uniform rates rather than tiered billing based on storage duration, the customer could ensure stable, controllable and predictable warehousing costs.

Image: Part of YQN's warehouses in North America

3. Digital Monitoring Warehousing & Distribution, Inventory Management Optimization

Our customer's goods are mainly sold to Western and Southeastern United States, concentrated in California, Florida, Texas, and Georgia. Due to high sea freight costs during the pandemic, the client stored all their goods in Los Angeles, resulting in high inter-regional trucking fees.

By analyzing the historical warehousing and delivery data of our client, YQN’s digital logistics system provided optimization suggestion. A portion of the goods was shipped to YQN’s warehouses in Atlanta and New Jersey, which brought them closer to the target markets and improved delivery efficiency. Additionally, taking advantage of the downward trend in sea freight costs, YQN advised this customer to stock some goods in our Atlanta warehouse, ensuring lower overall costs for sea freight, warehousing and delivery fee, despite slightly higher sea freight costs compared to the West Coast.

YQN Logistics Advantages:

YQN's digital logistics system regularly provides customers with visualized reports, considering the distribution of existing inventory, express zone partition, and inventory consuming data. Based on the customer's logistics budget and market trends, our digital logistics system comprehensively calculates the proportions of warehousing, operations, and delivery costs and offers suggestions for inventory management, shipping plans, thus helping customers save logistics and warehousing costs.

Warehouse and Distribution Management Process

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YQN Operation Team

info@yqn.com