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Inventory decrease --- Inventory cost transforms from the original dutiable cost into bonded cost by directly decrease inventory cost by 17% or higher, decreasing tying-down of capital caused by inventory and increasing capital turnover; meanwhile, as inventory duty is unpaid, the influence on tariff and value-added tax caused by the fluctuation of market price decreases accordingly.
Reducing response time of vendor supply --- Setting up the vendor's cargo collection warehouse in the bonded area nearest to the factory and optimizing the supply response time in the mode of green channel. (Further adding the alternative sites selected as customers' VMI hubs to improve the feasibility of VMI project)
Increasing material completeness --- Placing the cargo of all vendors together in a warehouse for operation and directly sending the complete cargo to production lines through third-party value-added logistics service so as to reduce the expenses and time of intermediate links.
Reducing warehousing, transport and customs clearance expenses --- Placing the cargo of all vendors together in a warehouse for operation and reducing operating expenses through such measures as increasing warehouse utilization rate, customs clearance integration and less than truck load.
Ensuring free flow of cargo in the international market --- Today, vendors are supplying more and more products to the international market, thus whether the cargo concentrating in VMI hubs can be exported to demanding countries freely becomes a key to the execution of VMI project. However, the pure overseas property of the logistics park ensures the demands for global purchase and supply. On the other hand, as overseas companies can directly engage in international trade in the logistics park, they can accomplish cargo ownership transfer and payment of money without even moving cargo.
Besides traditional VMI service mode, Orena is also actively promoting bonded VMI service around the country in order to serve export-oriented enterprises and further reduce the inventory occupancy in the entire supply chain. Additionally, according to the different demands of nuclear enterprises, we offer customers VMI buy-sell mode, that is we shall bear occupancy of part of inventory and funds and adopt Orena's purchase fulfillment mode to provide more forceful support to the execution of VMI project.
Service items:
Collecting vendors'raw materials for kitting and just-in-time (JIT) supply based on BOM of the producer;
Assisting vendors in adjusting the inventory of VMI hubs according to production prediction and plan;
Giving replenishment notices according to the maximum/minimum inventory limit of in-warehouse materials and support EDI links to relevant system interfaces through WMS system and interfaces supporting VMI operation.
Through our services, you can
lower inventory level, decrease purchase price and time and improve purchase efficiency;
enhance the constant improvement capacity of the supply chain and strengthen the partnerships with vendors;
enhance product performance and improve product quality;
and reduce the transaction costs of such links as purchase order, invoice, payment, transport and receipt of cargo.

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