SBS Worldwide has been selected by sportswear wholesaler Division Six to implement and operate a pan-Asia warehousing and distribution supply chain operation.
SBS Worldwide will provide Division Six, which partners with well known brands and national retailers to liquidate dated, discontinued and overstock merchandise, with transport and storage solutions for quantities of branded garments from multiple factories around South East Asia and China for re-sale and distribution within Asia, as well as Australia and South Africa.
SBS Worldwide provides bonded and non-bonded logistics facilities throughout Asia to handle the project and also manages the logistics, factory tax reclaims and export documentation to ensure trouble-free storage, sortation, picking and distribution when the goods are sold.
Stephen Schwarz, Business Development, Division Six, said: "SBS Worldwide’s ability to implement a pan-Asia supply chain operation using warehousing across the region tailored to our exact requirements has been impressive.
"Operations are extremely reliable despite the complex nature of the operation and the level of local expertise required."
SBS Worldwide Group Chairman Steve Walker added: "The project required a supply chain solution that could handle multiple origins, varying quantities of product and needed to be operated by a company with knowledge of Asian export regimes.
"Making the project even more complex, final destination of products is unknown until Division Six has sold the goods."
SBS Worldwide designed the operation to ensure that parties involved could benefit from tax incentive schemes.
In countries operating export tax incentive schemes, factories have a limited timeframe in which to reclaim the tax benefit after the date of export, however the goods may not be shipped out of the country within this timeframe after being sold and delivered to Division Six.
To avoid any delay for the exporter in receiving the tax rebate, SBS Worldwide arranges for the goods to be ‘exported’ into bonded logistics facilities around Asia and assists the factory in the rebate application.
The goods are then held securely and ‘exported’ out of the origin country, pending onward distribution to multiple buyers in multiple locations at later dates.
The contract follows on from SBS Worldwide’s satisfactory handling of Division Six’s Full Container Load business from China to USA.