Since 1979, when Shenzhen was declared China’s first “special economic zone,” the city has transformed from a small fishing town to China’s largest exporting city. Today, Shenzhen is one of the fastest growing cities in the world.
Whether you are exporting from South China or providing components to local manufacturers there, a Shenzhen warehouse could be a critical strategic piece of your global supply chain.
Why establish a Shenzhen warehouse?
A warehouse in Shenzhen makes sense for many reasons:
- Close to manufacturers. Shenzhen is one of the world’s premier manufacturing centers, particularly for electronics products. A Shenzhen warehouse lets you efficiently transport components to local assembly lines or transport finished goods from Shenzhen to customers worldwide.
- Proximity to ports. Global trade is easier and faster from Shenzhen due to its proximity to multiple seaports and airports. The Port of Shenzhen, the world’s third largest container port, is the collective name for several Chinese ports stretching some 250 kilometers along China’s southern coast. Three of China’s largest cargo airports are in or near Shenzhen, including Hong Kong international (#1), Guangzhou Baiyan International (#4) and Shenzhen International (#5).
- Proximity to Hong Kong. Within an hour you can transport products from a Shenzhen warehouse to Hong Kong, linking quickly with the fastest, most economical shipping lanes in the world.
- Free trade zones (FTZs).Shenzhen is home to four large FTZ’s – the Futian Free Trade Zone, the Pingshan Integrated Free Trade Zone, the Qianhai Integrated Free Trade Zone and the Yantian Integrated Free Trade Zone. A Shenzhen warehouse within an FTZ allows businesses to defer customs duty and VAT payments until items are sold or removed from the China bonded warehouse.
- Large concentration of Shenzhen logistics companies. Shenzhen has attracted many third-party logistics companies, including some who specialize in supporting consumer electronics supply chains.
What to look for in a Shenzhen warehouse provider
If you are looking for a Shenzhen warehousing and 3PL partner, the good news is that you have many choices. But these providers will have varying levels of experience and different areas of focus. You’ll want to do your research to arrive at a short list of ”best fit” partners to talk to.
Here are some things to look for:
- Bonded warehouse. An FTZ bonded warehouse offers major cash flow advantages for both imports and exports – an option not available at a general-purpose Shenzhen warehouse.
- Value-added services. Warehouse storage can be a commodity, but many 3PLs offer sophisticated value-added services that allow you to complete assembly and packaging in the warehouse at a much lower cost than doing it at the factory. For instance, for one consumer electronics company Dimerco transformed products from multiple suppliers into kits consisting of a keyboard, mouse and headphones.
- Integrated warehousing and global transportation services. For goods moving to, from and within Asia, the job of managing a supply chain becomes tougher if you work with multiple providers for warehousing, local trucking, and global transportation. You just won’t have the same level of control and visibility as you would get by integrating air, ocean and warehousing services with a global partner for integrated logistics services.
- Local trucking services. If you are moving goods frequently between Shenzhen and Hong Kong, it helps to have a 3PL partner with its own truck fleet that can offer reliable one-day service between Hong Kong and South China.
- E-commerce capability. The warehouse services you require to ship larger orders of pallets and cases is very different from those you may require for e-commerce distribution. Look for a Shenzhen logistics provider with the systems and experience to manage efficient picking and packing of individual orders, whether for domestic delivery in China or shipping to global customers.
Need warehouse space in Shenzhen?
Dimerco’s China freight forwarding and 3PL services include 79 company-operated forwarding offices in China, bonded warehouse operations in Shenzhen, Guangzhou, Shanghai and Beijing, and a general-purpose warehouse in Hong Kong. Two Shenzhen warehouses include one in the Yantian Integrated Free Trade Zone.
Best of all, Dimerco can offer Shenzhen warehouse services as part of an integrated logistics solution for air freight, ocean freight, and contract logistics services to reduce your total supply chain cost. To learn more, talk to a Dimerco warehouse services expert today.