Building overseas warehouses is an inevitable path for cross-border export development What are the difficulties faced by cross-border enterprises?

Overseas warehouses are necessary for cross-border export development What challenges do cross-border businesses encounter?

It is reported that in 2021, 76% of logistics service providers for Chinese export cross-border companies have plans to expand their overseas warehouses, and 92.46% of companies want to build warehouses in the European and American regions where warehouse area, growth rate, and customer demand are more prominent. In 2021, the number of Chinese overseas warehouses has exceeded 2,000, with a total area of ‚Äč‚Äčover 16 million square meters.

In recent years, with the improvement of global logistics infrastructure and the breakthrough of technologies such as intelligent warehousing and sorting, the functional nature of overseas warehouses has undergone tremendous changes. Overseas warehouses have evolved from a single storage tool to an integrated warehouse, first and last mile logistics, and return collection, effectively helping sellers to handle storage, logistics, shipping, returns, and other service needs, and meeting the timeliness of cross-border user logistics services.

In today’s globalized business environment, building overseas warehouses has become a necessary development path for more and more Chinese export cross-border companies. What are the difficulties in building overseas warehouses for cross-border e-commerce companies?

First of all, management is one of the key difficulties in building overseas warehouses. The lack of a professional management and operation team and management system, local operation of warehousing, domestic and foreign team communication and collaboration are all key difficulties, and companies need to have a deep understanding of local warehousing operation systems and build and manage teams. Due to the special nature of cross-border logistics, the management and operation of overseas warehouses require a certain international vision and experience, and companies need to invest a lot of time and energy in management and training.

Secondly, cost is also one of the difficulties in building overseas warehouses. The construction of overseas warehouses requires high capital requirements for enterprises, such as storage costs, automation equipment costs, labor costs, warehouse construction fees, labor operation fees, and supporting mature overseas warehouse management systems, etc., which require the building enterprise to have strong comprehensive strength.

It is worth mentioning that, for the warehousing and distribution operations of overseas warehouses, the Sifang Network Overseas Warehouse Management System can be used to achieve efficient and refined logistics operation management. This overseas warehouse system can meet the needs of B2B large-scale business management, as well as B2C refined warehouse and distribution management. It can support centralized control and distribution operations of multiple warehouses around the world, as well as diversified strategy configuration, to meet the demand for intelligent operation, and can achieve interconnection between e-commerce platforms and overseas local logistics service channels.

Finally, inventory management is also one of the difficulties in building overseas warehouses. The profit of overseas warehouses mostly comes from the high-speed circulation of goods. For some large-scale products with slow sales or in the off-season, it will greatly increase inventory pressure and affect the sales of popular products. Therefore, the improvement of inventory categories and turnover rate in overseas warehouses is also a major challenge. Enterprises can use advanced logistics management systems and overseas warehouse storage management systems to finely manage inventory and improve inventory turnover efficiency. In addition, regularly clearing unsold and expired products, timely handling returns and scrap products are also important means to improve inventory turnover rate. Through these measures, enterprises can better respond to inventory issues, reduce inventory costs, and improve the profitability of overseas warehouses.

In addition, building overseas warehouses also requires taking on risks and challenges in cross-border logistics, laws and regulations, and many other aspects. Enterprises need to conduct sufficient market research and risk assessment to formulate appropriate warehousing strategies and plans. In the process of building overseas warehouses, enterprises can choose to cooperate with local logistics service providers or warehousing service providers to reduce their own risks and cost pressures. At the same time, enterprises can also introduce advanced domestic warehousing management and logistics technologies to improve the efficiency and operation capability of overseas warehouses, thus achieving rapid development in the international market.

In summary, building an overseas warehouse can provide companies with faster, more efficient, and stable logistics services, but also faces many challenges and difficulties, such as management issues, cost issues, inventory issues, etc. Therefore, companies need to fully understand the local warehousing and operation system, establish a scientific management and operation team and system, have strong comprehensive strength, conduct sufficient market research and risk assessment, in order to better respond to various challenges and risks, and ensure the successful construction and operation of overseas warehouses.

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