Implementation of customs bonded store
31st October 2016
Implementation of customs bonded store ‘on-plant’
The key rational for utilising custom bonded stores as part of the inbound process is the suspension of tax duty - delivering substantial cash-flow benefits. However off-site bonded warehouses can be expensive as a solution, adding complexity to the supply-chain.
The whole Customs bond store project is anticipated to go-live within the current operation by August 2016 and the operating saving going forward over the next 5 years is estimated to be in the excess of 10% in comparison to an off-site solution, ensuring competiveness for the 1st tier supplier and it’s OEM customers.
Rudolph and Hellmann Automotive were challenged with investigating the potential of integrating the custom bonded operation into the established ‘in-bound on-plant’ logistics service.
R&HA strive to provide the most cost effective solutions to it’s OEM customers, which means the supply-chain is always under scrutiny to assess options that can deliver cost savings and efficiencies.
As many 2nd tier suppliers operate outside the EU, many 1st tier and OEM manufacturers can still obtain benefits from importing raw material from them, despite additional logistics costs - providing these costs are fully optimised on a regular basis.
Utilising resource from the development and operations team, together with partners, R&HA were able to quickly plan and develop a solution.
The custom bonded operation would utilise current on-site space to operate a customs bonded store, negating the need for an off-site solution. Working alongside it’s number of approved suppliers and experts, the development team were able to plan and cost every last detail for the store. This include additional security equipment, segregation fencing, revised storage profiles, MHE, unloading solutions and software requirements. The team also supported it’s customer by applying for all necessary certifications to operate the completed bond store, which included the compilation of all customs bond processes and necessary software requirements.
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