fbpx
DB Schenker - Now That's Logistics
  • English
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
DB Schenker - Now That's Logistics
No Result
View All Result
Home Shipping & Logistics Trade Advisory

Global Chip Maker Uses DB Schenker’s FTZ Cross-Dock Operations to Save Millions in Merchandise Processing Fees

July 10, 2017
Global Chip Maker Uses DB Schenker’s FTZ Cross-Dock Operations to Save Millions in Merchandise Processing Fees
Share on FacebookShare on Twitter

Tasked with deftly transforming thin disks of silicon (“wafers”) into semiconductors that serve as the very hearts of our mobile phones, TVs, medical diagnostic equipment, and various other electronic components, semiconductor manufacturers have unique logistics needs. Operating in a highly-competitive, fast-paced industry where new innovations are revealed almost daily, these companies must balance supply chain optimization with cost efficiency in order to meet their customers’ needs, stay one step ahead of the competition, and continue to grow.

As a global logistics provider, DB Schenker has been helping semiconductor companies conquer their biggest transportation and fulfillment challenges for more than two decades.  “We’ve been shipping semiconductor tools and materials for the semiconductor industry for over 20 years,” says Peter H. Yang, Global Account Manager, Semicon/Solar Vertical Market. “Our deep understanding of the unique semiconductor supply chain helps businesses continue uninterrupted while meeting the fluctuating demands of a constantly-changing market.”

That’s exactly why one global chip manufacturer recently turned to DB Schenker for help improving and honing its supply chain. For years, the company had managed its logistics operations internally, using only its own staff and resources. But as the manufacturer continued to grow and expand internationally, it knew it needed a strong, reputable logistics partner to help it get to the next level.

“Because the manufacturer was doing everything on its own,” says Yang, “it was using up a lot of human resources and capital (i.e., on warehouses, labor, freight costs, etc.) trying to move its products around the world.”

Tapping into Free Trade Zone Cross-Docking

After learning about DB Schenker’s Free Trade Zone (FTZ) cross-dock operations, the manufacturer decided to partner up with the logistics provider in an effort to save time, money, and hassle. Defined as geographic areas where goods may be landed, handled, manufactured or reconfigured, and then re-exported with less complex intervention of the customs authorities, FTZs allow manufacturers, distributors, importers, and other entities to defer, reduce, or even completely eliminate duties and fees on imported goods.

For the chip manufacturer, the FTZ serves as a staging area where bulk product shipments imported from Asia and Europe “land” in Los Angeles or Chicago. Once on U.S. soil, those shipments are delivered right to DB Schenker’s FTZ warehouse. The time span from shipment receipt to final delivery ranges from 24 to 48 hours—or sometimes less, depending on what’s being shipped and where it’s going.

“We process the shipments immediately; they don’t just sit there,” says Yang. “Then, we send those shipments out for delivery to the final end user or distributor.”

Saving Money, Time, & Resources

By outsourcing the cumbersome importing process to DB Schenker, the chip manufacturer has saved millions of dollars in merchandise processing fees (MPFs). According to the U.S. Customs and Border Protection, importers of record pay this fee at the time of presenting the entry summary to the CBP. Formal entries are required for imports of commercial goods valued at $2,500 or more, and the ad valorem fee is currently 0.3464 percent (based on the value of the merchandise being imported, not including duty, freight, and insurance charges).

Yang says these fees can add up quickly for companies that are importing large volumes of product into the U.S. and not using FTZs like the ones that DB Schenker has established in Los Angeles and Chicago. “Along with the money that our customer is saving by not having to maintain its own warehouses and logistics staff,” says Yang, “it’s also significantly reducing the MPFs that it has to pay out on an annual basis.”

By leveraging DB Schenker’s extensive air logistics network—and utilizing the provider’s FTZs—the chip manufacturer has been able to optimize its supply chain in a very cost-effective and efficient manner. “We’ve developed a long-term relationship with the company through our dedicated Semicon division,” says Yang, “and we look forward to adding even more value to that relationship in the years to come.”

Next Post
Innovation Pushing Logistics to New Levels in Mexico

Innovation Pushing Logistics to New Levels in Mexico

RECOMMENDED

Top 15 Ports in The Americas

Top 15 Ports in The Americas

March 16, 2018
Top 15 Ports in the Americas 2019

Top 15 Ports in the Americas 2019

June 24, 2019
The Top Air Cargo Airports in the US

The Top 10 Freight Airports in the US

March 12, 2019
3 Things You Need to Know about Importing Chocolate

Three Things You Need to Know about Importing Chocolate

February 2, 2017

TRENDING

Global Trade Trends for 2023

Global Trade Trends for 2023

January 26, 2023
5 Airfreight Trends to Keep On Your Radar Screen in 2023

5 Airfreight Trends to Keep On Your Radar Screen in 2023

December 27, 2022
The Port of Vancouver — What Drives Canada’s Busiest Gateway

The Port of Vancouver — What Drives Canada’s Busiest Gateway

December 13, 2018
The Top 10 Freight Airports in Latin America

The Top 10 Freight Airports in Latin America

October 21, 2019

Thought Leadership Updates with Brian Petrie

March 28, 2023
DB Schenker

DB Schenker is the world's leading global logistics provider, delivering over 150 years of premium performance and transportation solutions. One call gets our customers on the fast track to nearly 2,000 locations in all of the world's most important economic regions.

Contact Us

United States
+1 (800) 225-5229 (in USA)
+1 (602) 458-6200 (outside USA)
www.dbschenker.com/usa
Canada
+1 905 676 0676
www.dbschenker.com/ca

Categories

Visit Us

• DB Schenker Americas
• DB Schenker Canada
• DB Schenker Careers
• DB Schenker USA
• Trade Advisory Solutions

Follow Us

• LinkedIn
• Twitter USA
• Twitter Canada
• Facebook

© 2022 Schenker Americas, Inc. | Privacy Policy

No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
  • pt-br Português
  • fr Français
  • es Español
  • en English

© 2022 Schenker Americas, Inc. | Privacy Policy

We use cookies in order to optimize our website and continually improve it. By continuing to use this site, you are agreeing to our use of cookies. You can find further information on cookies in our privacy policy. Accept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT