Solutions

SCM

Supply Chain Management of U.S. Manufacturer During COVID

Industry: Motor Manufacturer
Service: Fulfillment and distribution service

Supply Chain Management of U.S. Manufacturer During COVID

Issue: During the recent COVID pandemic, our client’s distribution centers were filled beyond capacity, due to fewer outbound requests combined with a still steady inflow of cargo.

Response: Being proactive, we prepared RFQs (Requests for Storage) to secure space across the US at various locations for each warehouse. We actively track and minimize charges wherever possible. We check in with each warehouse to send cargo back out as space becomes available. For a location in Canada, we procured a storage facility to help take over their WMS (Warehouse Management Systems) as it was closing. We also worked with the customer closely, overseeing the transfer process to ensure everything was taken care of and up our required standards.

Result: We are currently storing in eight facilities. We provide weekly updates to management, keeping them apprised of total volume while staying in contact weekly for each location to see what can be received.

Transportation

Procurement Issue from Busan, Korea

Industry: Solar ware Integrators (Industrial Equipment)
Service: Ocean shipment, Inland transportation

Procurement Issue from Busan, Korea

Issue: Our customer was seeing high costs with DDP (Delivered Duty Paid) trade terms with their supplier.

Response: The volume was for 960 transformers per year and the customer would want to ship 6 at a time. We prepared RFQs to check least-cost routing to each of four distribution locations. Due to cargo size, we attempted to optimize the logistics cost by routing to the closest US port, then checking for crane transloading options within the ports.

Result: The customer negotiated to change their trade terms to FOB (Free on Board) with their supplier. We arranged a meeting with the supplier and carrier so that we could establish a good understanding of how operations would proceed moving forward. We now help them manage their operations from Busan, Korea.

Cross-border Transportation

Service: In-bond Transportation to Automotive Manufacturer in Mexico
Main Product: LCD displays for Automotives

Cross-border Transportation

Issue: Major producers of electric vehicles (EVs) have production shifted to Mexico. Our customer needed to establish fast and stable transportation of their cargoes from Asia to Mexico.
Our customer suffered from duty payments when items were imported and re-exported.

Response: Our FTZ function enables to do in-bond transfer to Mexico and the other countries, avoiding extra fees. Our FTZ warehouse allows for more flexibility in warehouse processes while the bonded warehouse provides simple transfer function. We also support reverse logistics from Mexico and the other countries as required for capturing value, or proper disposal.

Result: By using our FTZ warehousing and cross-border transportation, our customer was able to deliver cargos in a timely manner without incurring needless fees. Our customer also was able to maintain duty exemptions.

Warehousing

Sensitive Electronics/Components handling

Industry: Electronics Components
Service: Warehousing service with ESD control
Main Product: Semiconductor

Sensitive Electronics/Components handling

Issue: Electronics components are very sensitive to electronic discharge when operators open cartons and touch the product to split or combine items. Temperature and humidity management are essential, since electronics components are sensitive to low and high temperatures plus, humidity.

Response: We provide ESD protected areas to support customer’s requests and enable to split/combine goods in the warehouse.
We regularly inspect ESD functions to ensure a good environment is maintained.

Result: Products are handled according to specs required to deliver shipments timely and with expected quality.

Medical & Healthcare Product Handling

Customer: PARAMOUNT BED USA CORPORATION
Service: Oversized Medical Bed Handling
Main Product: Medical bed and Accessories

Medical & Healthcare Product Handling

Issue: Medical beds must be handled with care. Package design needs to be considered for LTL truck shipment.
Since this bed is used for medical purpose, the shipment must meet strict FDA requirements.

Response: We introduced special tools in order to handle heavy and large size cargo with care and prepared specialized size pallets for LTL shipment to customer sites.
Our Import department complied with FDA requirements and warehouse department support to capture S/N for customer’s FDA lot traceability.

Result: We protect cargos from damages during warehousing operation and domestic deliveries.

Houston Warehouse

Houston Warehouse

Our new TLGA Houston Warehouse was established and began operations on October 1st, 2024.
The warehouse is conveniently located approximately 5 minutes by car from IAH (George Bush Intercontinental Houston) Airport and will be able to provide a variety of services primarily to customers in the Houston area.
The warehouse space is 41,000 square feet and can handle all logistics operations such as receiving, shipping, storage, and transloading operations.
This Houston Warehouse is Toshiba Logistics America’s second warehouse, following the FTZ warehouse in Fullerton, California. Houston is a significant logistics hub for both the Gulf Coast and the East Coast. Its strategic location, robust infrastructure, and extensive transportation network make it a key player in logistics and supply chain management.

Location Name Houston Warehouse
Location Address 3340 Greens Rd. Bldg A – Suite 500 Houston, TX 77032-2369
Opening Date October 1st 2024
Space 41,000 SQ FT

Import, Export & Trade compliance

How We Saved Client Millions Leveraging Exclusions in Section 301

How We Saved Client Millions Leveraging Exclusions in Section 301

Issue: One of our customers is an electronics manufacturer with factories in Asia with customers in the US and Mexico.The implementation of Section 301 impacted our client financially as an additional 25% duties were imposed on their Chinese imported merchandise.

Solutions: Our three-phase solution saved our customer money. We first applied for an exclusion for the company, which allowed us to obtain refunds for the Section 301 duties paid previously on the List 1 product. Then we leveraged existing exclusions which allowed us to obtain refunds for the Section 301 duties paid previously on the List 4 product. Section 301 encouraged us to investigate further into our client’s products, prompting our team to file country of origin rulings, arguing that products in question originate from Japan or Taiwan.

Result: We helped the customer obtain over $12 million in refunds in the form of post summary corrections and protest claims. The supply chain remained unchanged because of the exclusions leveraged and country of origin rulings filed to CBP.

Leveraging Our Foreign Trade Zone (FTZ) Expertise

How We Saved Client Millions Leveraging Exclusions in Section 301

Issue: An electronics manufacturer with factories in Asia and customers in the US and Mexico faced substantial challenges. The customer had an incremental 25 percent Customs duty for their product made in China, along with high-value shipments each day that required the payment of extremely high air freight rates.

Solutions: We were able to leverage our Foreign Trade Zone prowess in the following ways, with significant savings to our client. First, we implemented the Customs duty-free transfer of shipments to Mexico and to other bonded or FTZ customer warehouses in the US. We complied with CBP’s country of origin rulings for shipments to our customer’s US customers. Then we enabled our customer to convert a substantial portion of their air shipments to ocean freight.
We deferred the remaining Customs duty until when the inventory was sold, not when it arrived in the US and limited the Customs tax per week to only $614.35.

Result: The resulting savings totaled $14 million in one year, without impacting cycle-time. As a side benefit, inventory accuracy also improved.

CTPAT (Customs Trade Partnership Against Terrorism)

How We Saved Client Millions Leveraging Exclusions in Section 301

Issue: As part of Custom’s efforts to thwart terrorism, one of our importer’s shipments from Asia were being examined by U.S. Customs and Border Protection which created significant delivery delays.

Solutions: We applied to U.S. Customs and Border Protections’ CTPAT Security Program to help our customer.

Result: Our client successfully passed CTPAT’s strict validation audit, allowing our customer admittance into the program. Now, none of their current shipments are being delayed by long examinations by U.S. Customs and Border Protection.

Project Logistics

Generator Relocation Project (236 Metric Ton)

Industry: Industrial / Power Generation
Service: Heavy Haul, Transloading, Rail, Transloading, Heavy Haul
Main Product: Generator Built in 1970

Project Summary: We were tasked to collect a 1970 Generator from a shuttered power plant, receiving to 236 Metric Ton (MT) unit a Self Propelled Modular Transporter (SPMT) for transit over commercial roads – 1.5 miles – to local rail siding. Upon arrival at local rail siding, we transferred Generator from SPMT to suitable rail car for a 50 mile rail transit to a receiving rail siding, near job site. Upon receipt at local rail siding to job site, we transferred Generator from rail car to SPMT to make the 3-mile Heavy Haul to job site.

Issue: Delivery feasibility via rail transport was determined as feasible, but only via use of a 20-axle rail car. Our client had to harvest the Generator by a certain date, but 20-axle rail car availability was limited and near impossible at the time of need, generating potential long delivery delay period and storage at select points of transport while waiting for car availability.

Response: Research was initiated to check clearance options based upon utilizing a 16-axle rail car, which was determined feasible but only with a slim margin of rail clearance allowance. Buffer between rail configuration and rail clearance was only 2″ Width and 1″ Height.

Rail Configuration

Rail Configuration

Buffer
Width 2″
Height 1″

Rail Clearance

Rail Clearance

Rail Clearance

Result: Utilizing a Special Train, no issues, or incidents for the rail transport. We safely delivered Generator to a local rail siding near job site, effectively transferred to SPMT for delivery to site.

Collection from Turbine Building

Collection from Turbine Building 1
Collection from Turbine Building 2

Transport to rail siding by SPMT

Transport to rail siding by SPMT

Transload to railcar by gantry

Transload to railcar by gantry

Rail Transport

Rail Transport

Transload to SPMT by gantry

Transload to SPMT by gantry

Transport to site and unloaded onto stand

Transport to CFS site and unloaded onto stand 1
Transport to CFS site and unloaded onto stand 2
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