How Do Bonded Logistics Centres Affect the Supply Chain?

The global economy has been increasingly integrated in recent years, with businesses spanning multiple countries and continents. In such a globalised economy, the efficient movement of goods through effective supply chain management is crucial for businesses to remain competitive. This is where logistics centres come in. Logistics centres are locations where various transportation, storage, and distribution activities take place, and a bonded logistics centre is a specific type of logistics centre that is designated by the government as a warehouse that helps foreign businesses improve their cash flow, reduce storage as well as handling costs, and more. Unlike a bonded warehouse – a secure warehouse in which goods are stored until customs duty is paid or the goods are cleared for export –, this designation allows companies to import and export goods without paying duties or tariffs. In this article, we will discuss how bonded logistics centres affect the supply chain.

Why Use a Bonded Logistics Centre

Bonded logistics centres are becoming extremely popular when dealing with the transportation of goods. They are often located near ports or airports, making them convenient for businesses that need to move goods quickly. In addition to storage, many bonded logistics centres also offer value-added services such as packaging and shipping. By taking advantage of these services, businesses can save time and money on their supply chain. 

As global trade continues to grow, bonded logistics centres are likely to become an important part of the supply chain. There are many ways in which your business can benefit from using a bonded logistics centre, here are the top four advantages:

Cost Reduction

Bonded logistics centres are beneficial for businesses looking to cut down on operating expenses as one of the primary benefits includes cost reduction. A bonded logistics centre is a facility where imported goods can be stored and processed while awaiting customs clearance. Because the goods are technically still in transit, they are not subject to import tariffs or other restrictions. This can save businesses time and money, as they can avoid the need to obtain an import licence or bond in certain countries. As bonded logistics centres are typically located near ports or airports, businesses can also enjoy a reduction in transportation costs. 

In addition, when businesses choose to outsource customs clearance to a bonded logistics provider, they can reduce the need for additional staff, rent additional space, and purchase expensive equipment. Furthermore, bonded logistics centres are often able to leverage their scale to negotiate lower rates with customs authorities, further reducing costs. By using a bonded logistics centre, you can also rest assured that your paperwork will be in order before your goods are released, helping you avoid penalties and hefty fines that come with improper declaration. As a result, businesses that use these facilities can enjoy significant savings on their import-related operating expenses.

Improved Efficiency

Bonded logistics centres can help to streamline the clearance process by providing a one-stop-shop for all import-related activities. By consolidating shipments from multiple suppliers, they can reduce the overall number of trucks needed to transport goods. This not only reduces traffic congestion and pollution, but also cuts down on the wear and tear of roads. In addition, bonded logistics centres can take advantage of economies of scale to reduce labour costs and improve worker productivity. By streamlining the shipping process, they can also help to reduce delays and improve the timeliness of deliveries. 

Increased Flexibility 

Using a bonded logistics centre provides businesses with greater flexibility as they offer businesses the ability to store goods long-term or short-term, depending on their needs. Not to mention, businesses can have their goods released for consumption as soon as they arrive at the facility or they can schedule release at a later date. This flexibility empowers businesses with better control over their inventory to meet customer demand more effectively. 

Enhanced Security Levels

Due to these centres being built near ports or airports, they must be approved by Customs. In order to obtain approval, bonded logistics centres must meet certain security requirements, including the use of an intrusion detection system, physical barriers, and armed security guards. Bonded logistics centres are also required to maintain detailed records of all incoming and outgoing shipments. As a result of these security measures, bonded logistics centres are able to provide a high level of security for imported goods. This enhanced security can help to prevent theft, smuggling, and other illegal activities. Additionally, by consolidating shipments from multiple suppliers, bonded logistics centres can help to reduce the risk of lost or damaged goods. Overall, they provide an important service by helping to ensure the safety and security of imported goods.

Partner with Halcon Primo Logistics Today

A bonded logistics centre is a valuable tool for businesses that import goods from overseas. By consolidating inventory into one central location, businesses can save money on warehousing and storage costs, improve cash flow, and shorten their overall supply chain. If you are thinking about using a bonded logistics centre for your business, speak to our team today to learn more about how this system can benefit you.