BML
BML
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Vendor Managed Inventory

CURRENT PROCESS

Individual shipments from various overseas suppliers meant for various customers in India arrive through multiple gateways

Shipments are cleared at various customs stations & dispatched to Indian customer on payment of customs duty

CHALLENGES

Higher logistics costs and multiple customs clearance charges at Destination

Higher order to delivery lead time due longer transit time to India

VMI/SMI & JIT not possible to be practiced

consolidation

PROPOSED MODEL - FTWZ

Overseas supplier can hold cargo in BML FTWZ under their ownership – FTWZ acting as Custodian / IOR

Availability of stock near to the Plant / End customers in India, reducing delivery lead time by creating a JIT model

Multiple Batch coming in via different shipment modes meant to single customer in India can be moved as a single shipment reducing logistics and customs clearance cost

Duty Deferred storage of cargo

Invoice can be raised from overseas office based on purchase orders raised by customers whilst goods are stored in BML FTWZ

Scope of Value add services such as MRP labelling, kitting, re-packing, quality checking within BML FTWZ prior to dispatch

Upon instructions, dispatches can be made to various customers in India, basis Bill of Entry filing, assessment & duty payment, as and when required

Transfer of Title to customer at the FTWZ frontier thereby reducing risks associated with long transit of goods when procured from overseas

Higher logistics costs and multiple customs clearance charges at Destination

Higher order to delivery lead time due longer transit time to India

VMI/SMI & JIT not possible to be practiced

Buyer's Consolidation - PICK & PACK

consolidation

CURRENT MODEL & CHALLENGES

Individual shipment processing at each stage at origin and multiple handling of shipments including paperwork

Drawback/export incentives claimed when the goods physically leave India

No platform for multi-vendor consolidation including last mile customization & VAS - kitting, labelling, packing, looping, tagging etc.

Lack of visibility on the logistics chain and multiple shipments to be tracked and followed

BUYER CONSOLIDATION

Overseas Buyer making FTWZ as a consolidation Centre for Pick and pack Operations

All Value add pertain to Country of Destination like Labelling / Packing – Store Wise / DC wise can happen at FTWZ

PROPOSED MODEL - FTWZ

Domestic Suppliers can export the goods to Overseas Buyer in BML FTWZ

One-stop-shop from receipt of cargo, inbound customs filling/processing/ documentation/visibility and tracking (*Drawback to be filed at the respective Customs Jurisdiction by the Domestic Supplier with the Disclaimer Certificate Given by FTWZ )

Multi-vendor consolidation at SKU/Shipment level done in FTZ including VAS – MRP, Packaging, Repackaging, Looping and Tagging

Instructions & Documentation from Overseas Buyer to ship cargo out of India

Indian Retailers/Distributors can also import from FTWZ into India on Payment of Duty - thereby eliminating the forward and reverse logistic costs of distribution

Filling of Free Shipping Bill by FTWZ Unit acting as Exporter on Record, Placing and Stuffing Containers and Direct movement to port – better matching of cut-off and sailings , any COO or compliance documents can be adhered

Transaction Flow

consolidation

Value Added Services

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BML - an E2E EXIM Logistics Solution

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1.

Inbound Logistics

2.

Container storage & connection points for reefers

3.

Warehouses with G+6 rack storage

4.

Computerised Warehouse management sytem

5.

Dedicated storage for hazardous material

6.

Cold rool facilities (15-25C)

7.

De-bulking & SKU wise stocking

8.

Tagging

9.

Re-labelling

10.

Quality Assurance

11.

Packing

12.

Bottling

13.

Bubble Wrapping & Bagging

14.

Centralized customs clearance desk & 24x7 security

15.

Outbound logistics