Chinese customs regulations: A challenge for Inventory Management of manufacturing companies

Munich/ Shanghai: The international management consultancy Barkawi, an expert in supply chain management and logistics participated in the Customs & Tariffs meeting next to delegates from Shanghai customs and Shanghai inspection & quarantine offices as well as representatives from the mechanical & electrical sector and cosmetic & food industries. The large attendance of the event shows the growing awareness and demand of Chinese manufacturing companies for qualified expertise especially in the worldwide after sales service market.

The two day event in Shanghai on Customs Regulations and Practices in China offered in different workshops and case studies a platform for customs officers and industry experts to develop a mutual understanding of each other’s customs issues. The meeting dealt e.g. with current topics in the sector like the new 2008 prohibited & restriction catalogue for processing trade, customs classifications, commodity inspections and quarantine as well as customs valuations and auditing etc.

As manager of Barkawi Shanghai, Mr. Christian Rubenbauer talked about the necessity of efficient and optimized customs regulation in order to facilitate customer orientated inventory management. According to Mr. Rubenbauer: “Long customs lead times and regulations quite often result in the need for businesses to maintain high buffer stocks to provide an acceptable level of customer service.  As inventory becomes more expensive in overseas markets due to customs and logistics costs, it ties up working capital and leads to obsolescence in inventories.” Rubenbauer empathized:  “For Chinese manufacturers it is crucial to implement optimized inventory management to become a competitive market player and to achieve satisfying business success outside of China.” 
According to Barkawi research in a growing international service-orientated aftermarket a customized cost-benefit-balanced Inventory Management plays a significant role for primary product manufacturers and after sales service providers as well as customers and suppliers. Therefore 5 major fields of inventory: customer requirements, data, inventory utilization, efficient logistics and a planning tool, have to be considered for its management. By taking these fields into consideration Barkawi makes it its own business to select an adequate service provider according to customer demands and to implement an effective management and controlling of service partner KPIs. Furthermore the integration of suppliers into the supply chain is essential. To integrate all acting parties and achieve visibility throughout the entire supply chain an optimized network and information system is necessary to monitor data and parts flows.

About Barkawi:
Barkawi is an international management consulting company with proven expertise in After Sales Services and Logistics. Barkawi supports global aftermarket organizations in developing service strategies and achieving operational excellence. Barkawi focuses on technology-driven industries such as Industrial Machinery and Components, High-Tech and Tele-communications, Railway Technology, Aerospace as well as Automotive and Medical Technology. Customers include large multi-nationals with capital intensive and logistically complex business models, such as Agfa, Daimler, Deutsche Bahn, Deutsche Telekom, Electrolux, Fujitsu Siemens Computers, Lufthansa, Nokia, Philips, Porsche, Siemens and Volkswagen.

For further information on Barkawi, workshops and services, please visit: www.barkawi.com.