Logistic network design service based on import bonded warehouse Brown and Haley sells candies under the brand name Almond Roca, and it is very popular in China and Southeast Asia. Sims trading has been Almond Rocas trade agent for over 10 years in the Asia market. Before 2005, Almond Roca was only imported from the USA. The price was expensive and the product was only packaged in two sizes. The lack of variety in the packaging and the high price soon led customers to turn to other brands. In recent years, the market share of Almond Roca has declined slightly. Faced with this problem, Sims and Brown and Haley thought to change the situation by redesigning the logistic network to offer a better service. Aware of the difficulties experienced by Brown and Haley, Sims trading introduced DCHS to them. The original logistic network of Almond Roca was so organized: the Almond Roca factory in the USA collected the sweet material from the USA producers and the packing material from paper manufactured in Zhongshan and Dongguan of China then shipped it through the ShenZhen Yantian Port. For the Asia market, the final packed candies were shipped to Sims Trading in Hong Kong, who who were in charge of selling the Almond Roca for China and all the Southeast Asia Market.After considerable investigation and preparation, the DCHS team designed a new logistics network. In the new design, instead of packing the Roca in the US factory, the candies are shipped in bulk to the bonded DCHS warehouse, as well as the packaging materials. The packing is conducted in the imported bonded warehouse, and without any complicated import and export procedures, the finished products are sold to Southeast Asia. Customs clearance is only necessary for goods sold in China . DCHS provides services of shipment, packing and quality controls for the entire operation. Because DCHS installed an advanced computerized inventory management system, Brown and Haley can log in to the system and monitor its Roca inventory. As the best temperature to store candies is 20C, DCHS, through GPS, cautiously and carefully monitor all the storage, packing and transport processes to assure Almond Rocas quality.

How can a third-party logistics provider supply customer-adapted services?

Which could be the key success factors for a third-party logistics provider in the future?