Self-operated overseas warehouse optimization strategy and cost analysis: the key driving force for improving cross-border e-commerce logistics efficiency
1. Advantages and characteristics of self-operated overseas warehouses
The self-operated overseas warehouse model is a warehouse established and managed by cross-border e-commerce sellers in order to improve supply chain efficiency and reduce operating costs. Compared with the traditional model of renting overseas warehouses, super-large brand companies such as SF Express, Jumei, and Guishui have reduced overall costs and improved service quality through self-operated overseas warehouse models. Self-operated overseas warehouses can not only achieve rapid cross-border distribution, but also establish overseas warehouses for cross-border e-commerce through independent legal persons. For example, SF Express’s overseas warehouse has an area of more than 75,000 square meters and is SF Express’ cross-border e-commerce company. The strategy has laid a solid foundation.
2. Cost of self-operated overseas warehouses
Initial investment fee
- Warehouse construction costs: including rent, decoration, equipment purchase and warehouse layout, etc.
- Warehouse equipment costs: Purchase or lease warehouse equipment, such as shelves, handling equipment, packaging materials, etc.
- Information technology system costs: Efficient information technology systems manage processes such as inventory, orders, and logistics.
Operating costs
- Personnel costs: Hire warehouse managers, logistics coordinators and after-sales support personnel, etc.
- Logistics costs: transportation, freight insurance, duties and customs clearance fees, etc.
- Warehouse costs: warehouse rental, equipment maintenance, cleaning and insurance costs, etc.
Other potential costs
- Capital Tied Cost: Tied capital used to purchase inventory and pay operating expenses.
- Sluggish inventory costs: Costs caused by factors such as inventory overstocking and price reductions.
- After-sales service costs: costs for returns, refunds, exchanges, and after-sales consultation.
3. Optimization plan
Optimize warehouse layout and cargo management
- Warehouse layout optimization: Reasonably plan the layout of the warehouse to improve storage capacity and pickup efficiency.
- SKU Management: Effectively classify, identify and locate products for quick search.
- Adopt advanced warehousing technology: automated warehousing systems, robotics, etc.
Optimize inventory management and order processing processes
- Establish an accurate inventory forecast and replenishment mechanism: Replenish inventory in a timely manner through data analysis and market trend prediction.
- Use an advanced inventory management system: Track inventory status in real time.
- Order processing process optimization: Improve order processing speed and accuracy.
Logistics cooperation and transportation optimization
- Choose the right logistics partner: Ensure the stability and reliability of logistics services.
- Transportation method optimization: Choose the most appropriate transportation method, such as sea transportation, air transportation, express delivery, etc.
- Shipping route and time optimization: Reduce shipping time and costs.
Data analysis and continuous improvement
- Data Analysis and Reporting: Monitor and evaluate operational performance to identify issues and opportunities in a timely manner.
- Operational performance indicator setting: Set key indicators, such as inventory turnover rate, order processing time, customer satisfaction, etc.
- Continuous improvement and optimization: Continuous improvement and optimization based on the results of data analysis and operational performance evaluation.
Personnel training and teamwork
- Warehouse personnel training: Provide necessary training and skills improvement opportunities.
- Cross-department cooperation: Strengthen communication and collaboration between the warehouse and other departments.
- Team motivation and motivation: Improve team cohesion and work motivation.
4. The importance of self-operated overseas warehouse data
The importance of data
- Inventory Management: Real-time inventory management to avoid overstocking or out-of-stocks.
- Logistics Operation: Efficient logistics operations improve logistics efficiency and customer satisfaction.
- Order processing: Optimize the order processing process and improve order processing speed and accuracy.
- Customer Insights: Gain insights into your customers’ buying behavior, preferences and needs.
Application of data
- Forecast demand: Forecast future demand through historical sales data and market trend analysis.
- Optimize supply chain: Identify bottlenecks and optimization points in the supply chain.
- Improve customer experience: Personalized product recommendations, optimized website interface and shopping experience.
- Data-driven decision-making: Make data-driven decisions based on data analysis and comparison.
- Performance evaluation and monitoring: Set key performance indicators and monitor inventory turnover rate, order processing time, logistics timeliness, etc.
5. Comprehensive disclosure of construction, operation and management costs
Construction costs
- Land Purchase: Building an overseas warehouse requires purchasing land, which is costly.
- House construction: The cost of building a warehouse includes architectural design, construction, decoration, etc.
- Equipment purchase: Purchase shelves, logistics equipment, management software, etc.
- Labor costs: Recruiting managers, warehouse workers, logistics personnel, etc.
Operating costs
- Labor costs: Pay wages, social security, provident fund and other expenses.
- Logistics costs: Pay logistics and distribution fees, bonded fees, customs duties, value-added tax, etc.
- Insurance Cost: Purchase insurance to protect the safety of the goods.
- Electricity bills, water bills, rent, etc.
Management costs
- Warehouse management: Standardize the management of the warehouse.
- Logistics management: Standardized management of logistics.
- Inventory management: Standardized management of inventory.
- Human resources management: Recruit, train and manage warehouse managers, logistics personnel, warehouse workers, etc.
Conclusion
Self-operated overseas warehouses can not only improve the service quality and logistics efficiency of cross-border e-commerce sellers, but also reduce operating costs by optimizing warehouse layout, inventory management and order processing processes. At the same time, through data analysis and continuous improvement, sellers can better respond to market changes, improve customer satisfaction, and lay a solid foundation for continued business development. Therefore, cross-border e-commerce sellers should pay attention to the collection, analysis and application of self-operated overseas warehouse data, using it as a powerful tool for decision-making and improvement to achieve more efficient supply chain management and business growth.