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Coordinated Logistic Action Initiated in SIP Special Control Zone

Three enterprises from Fortune 500, Seagate, BAX Global, and Flextronics, signed a MOU on July 27 on third-party logistics operation within SIP. Responsible members from General Office of SIP Processing Zone and SIP Customs attended the signing ceremony.

The signing of the MOU is the result of the efforts by SIP in pushing forward the coordinated logistics action within special control zones of SIP since the end of last year, and marks the beginning of coordinated action between Zones A and B in the SIP Export and Processing Zone.

Flextronics in Processing Zone B is the backup enterprise of Seagate in Zone A, and normally, the transfer of goods between the two special control zones is handles by customs control vehicles through complicated procedures at high cost. After repeated consultations, SIP Processing Zone put forward the creative operation mode of "truck transportation, commercial sealing, separate delivery, and combined declaration", with the result that dispatching and receiving of goods are completed within 7x24 hours. The operation not only reduces the inventory of enterprises to the minimum and lessens the pressure on working capital, but also speeds up the response of supply chain to meet the demands of modern logistics development.

Seagate, the world's No.1 hard disc manufacturer that claims over 50% of the global market share after acquiring Maxtor, has made SIP Export and Processing Zone its future major production base. Bax Global, a wholly-owned subsidiary of Deutsche Bahn AG of the Fortune-500 German corporation, ranks the first on the market share of large-piece logistics in USA. Flextronics Group is one of the globally largest suppliers of electronic manufacturing services, and its manufacturing facility in the Processing Zone is its first project in Suzhou, which took only 40 days after its establishment to start delivery of goods under the coordination of the General Office of the Processing Zone. The cooperation among the three giants has set an example for the smooth backup and supply chain in the SIP Export and Processing Zone, and initiated the fast transfer of goods between Zones A and B as the first step for regional logistics coordination in the future.

July 31, 2006

 

   
 
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