British Atlantic importation project
Project title: British Atlantic importation project
Client name: ATLANTIC COMPANY (UK) LTD. A British SME, producing saw blades.
Case type: Importation
Our role: Agency for ATLANTIC COMPANY (UK) LTD. in China territory
Purchaser: Atlantic’s Chinese clients
In 2010, Atlantic and E-Heng came together based on the shared characteristics of foreign trade industries. Shortly after the two met in a meeting regarding the facilitation of UK-China trade and commerce communication, a business consensus was made and from then on, Atlantic and E-Heng have successfully cooperated for the last 6 years.
The services E-Heng has provided Atlantic can be concluded as: Supply chain management and Business strategy executor, which is broken down into following aspects:
- Business Support:
E-Heng provides a periodical consulting report to Atlantic, mainly focusing on surveys about industrial trends, marketing demand positioning, high-end food industry development information, Chinese marketing scheme and Trade simplification mechanisms.
- Exhibition service:
The Chinese market is the largest overseas market for Atlantic and they focus on fully exhibiting their products to local Chinese end users, where large domestic exhibitions become their first choice of advertisement. E-Heng is experienced in arranging large domestic exhibitions, providing Atlantic with a one-stop service including exhibition booth booking, product packaging, transportation, advertisement board production, booth decoration, on-site staffing, translation and client’s reception.
- Funding support:
Chinese domestic buyers of Atlantic products are from different industries and areas, which leads to different payment term requirements, way of transaction and ways of shipping. To Atlantic, accuracy on quotation is very important, where E-Heng played a key role. Atlantic only needed to give an accurate EXW quotation to E-Heng; E-Heng was then able to give all domestic buyers an integrated payment scheme that meets their different requirements. Taking the example of the 150,000 meter of saw blades worth £130,500 purchased by Guangdong Dachuan sawing industry (GDSI), where Atlantic required GDSI to 100% TT in advance while offering 5% discount. Whereas GDSI preferred to pay 50% in advance and the remaining 50% being paid before the goods arrived in the port, in order to ease the financial pressure, however, the 5% discount was emitted by Atlantic. The payment terms required each side had a 45-day difference. As a local service agency, E-Heng mitigated the conflict by paying the money 45 days in advance for GDSI. In this case, E-Heng not only eased GDSI's financial pressure but also helped GDSI win the 5% discount back. More importantly, with E-Heng's help, Atlantic successfully developed a long term Chinese client with great growth potential, a truly win-win strategy was forged.
- Financial service:
Most of the Chinese domestic buyers preferred ocean shipping; however the fluctuation of exchange rate under ocean shipping will increase the uncertainty to buyers' purchasing power, especially in the context of EU turmoil. To help Atlantic solve this problem, E-Heng provided a special service for those domestic buyers as to "locking the exchange rate". By being a middleman who locked the exchange rate, E-Heng helped avoid the risk brought by exchange rate fluctuation and found a balance of the exchange rate for both sides.
- Supply Chain service:
E-Heng's wholesome supply chain systems ensured a one-stop service, addressing all the operation process, all the way from the goods being well prepared from the original plant to being shipped to Chinese domestic buyers' sites. The operation process includes: factory delivery, British custom clearance handling, air and ocean shipping, Chinese custom clearance handling and arrangement for domestic logistics.
Since Atlantic's Chinese business is seeing steady growth, Atlantic and E-Heng are discussing about establishing a warehousing, distribution and customer service centre, which will be head-quartered in Shanghai and run by E-Heng as an agency. The content of the establishment will include warehousing, transhipment & delivery, product repair and maintenance service, CRM, brand building, etc. Both sides believe that once the centre is established, E-Heng's executing work will be even more efficient and highly effective, which will certainly increase cooperation to an unprecedented level.
- Client name: ATLANTIC COMPANY (UK) LTD
- Case type: Importation
- Purchaser: Atlantic’s Chinese clients