If you’re shipping from China or importing from China, you probably needs a China warehouse – right?
Well, in this guide, you will learn how to get a safe, secure and organized China warehouse.
Let’s dive right in.
What is the Role of China Warehouse?
The purpose of China warehouses includes:
i. Controlling the supply and demand chain. In other words, they create time utility for raw materials and finished products.
ii. Storing goods for the manufacturer then distributing them to the customer when the need arises
iii. They help you consolidate your cargo if you’re dealing with a variety of goods from different suppliers.
iv. China warehouse serve as a product distribution center: It is a point products distribution thus reducing shipping costs and enhance transportation.
v. Some employ use of highly specialized CCTV, access controls, and monitoring alerts to ensure the safety of your goods
Why Choose China Warehouse?
Below are some of the benefits of choosing China Warehouses for your products from China:
i. You will be able to consolidate small shipments.
ii. Ensure quality control as inspection happens from a central location.
iii. Hold stock of your products hence reducing chances of delay in supply of goods when the demand arises.
iv. You can send your goods from China warehouse directly to your customers worldwide.
v. In case of wrong delivery, you can send them back to the warehouse and have them replaced by the supplier.
vi. You only pay fee when you use the warehouse, they do not charge structural fee to clients.
What Services can a China Warehouse offer?
Some of the services provided by China warehouses consist of:
i. Receive stock from your manufacturer.
ii. Ensure 24/7 security of your goods hence you can store even high-value products.
iii. Track stored goods and provide you with status reports.
iv. Provide warehousing and inventory management of products.
v. Consolidate your cargo in case you require the services.
vi. Some offer freight forwarding services.
vii. Help in distribution of goods.
viii. Palletize your goods.
ix. Store goods in a temperature-controlled environment.
x. Some offer labeling services
xii. Provide storage for both short and long-term basis.
xiii. Some China warehouses have special facilities to store hazardous cargo to ensure it poses no risk to other people.
It’s worth mentioning, you may pay extra costs for most services above.
How does China Warehouse work?
i. After receiving goods from your supplier, they check to ensure that the delivered products are what you order.
ii. Inspection for verification of quality of goods then follows.
iii. The trained staff then packs, labels, palletize and consolidate goods.
iv. China warehouse store the cargo according to their nature for the agreed period.
v. The warehouses provide 24/7 security on your cargo.
vi. Once time elapses, the goods get loaded and distributed to your customer.
When should I Consider Working with a China Warehouse?
Consider opting for China warehouse if:
i. You regularly import goods from China, you can hire or even buy a warehouse in China.
ii. You are relocating either your home or business and you need short-term storage.
iii. You want a steady flow of goods from the warehouse to your customer.
iv. When you have excess supplies and have nowhere to keep them.
How Much is it to Lease a Warehouse in China?
Leasing a warehouse in China is cheaper than owning one.
The average rent per month is 43.4 yuan per square meter.
However, prices may hike especially during peak seasons.
Consider talking to the owner of the premises to get better rates.
What Other Costs are Associated with China Warehousing and Fulfilment?
The additional costs related to China warehousing include:
i. Storage cost: Means any expenses linked to goods at rest. Also referred to as monthly costs.
ii. Operations/administrative cost: These are costs like insurance, taxes, supervisions, etc.
iii. General administrative expenses: Includes general management and office expenses.
iv. Handling: Involves expenses related to the movement of products in and out of the warehouse. You pay for handling fees such as loading and offloading.
Handling also includes equipment used to handle products, pay the cost of fuel and power of equipment.
In short, it involves costs related to goods on motion.
Where can I Rent a China Warehouse?
You can find china warehouses in various major cities like Shanghai.
Some of the locations include:
- Shanghai WGQ
- Debao road
How is Warehousing Cost in China Calculated?
Knowing how to calculate the actual warehouse can help you in financial planning.
Calculating China warehousing cost might sound complex but we’ll try to simplify the process.
First, measure the exterior wall of your warehouse.
This means the area your goods occupy.
It can be more tedious if your warehouse has been expanded or has an irregular shape.
For example, let’s work with 180ft deep × 200 long =36000ft
Then, multiply 36000ft with cost per foot to get storage cost, which you will pay monthly.
The total warehousing cost includes lease fee, employee salary, equipment cost, etc.
Most warehouses have a minimum fee for their clients.
What is Considered Short-term and Long-term Storage in China Warehousing?
There are two storage options that China warehouse provides:
i. Short term refers to goods stored for less than three months in a warehouse. You may need short term storage if:
- You’re relocating your business.
- Consolidating shipment.
- If you are dropshipping products.
ii. Long-term shipment is storage of more than three months. Products that are commonly stored for long are bulky materials and seasonal products i.e. goods sold on holidays.
What is Split-month Storage in China Warehousing?
Like the term suggest, it has split storage rates for customers.
You pay full month storage rate for pallets at hand in the first half of the month.
However, you will pay half the storage rate for pallets arriving in the second half of the month.
When customers enjoy low rates, they become returning customers hence generating revenue to the warehouse.
What are the Different Types of Warehouses in China?
You may think that all warehouses serve the same purpose.
Surprisingly, they differ.
Choose one that suits you depending on your business needs, supply chain, and budget, among other factors.
These are owned by the government or semi-government then used by private companies to store goods on rent payment. Y
ou can use them for either business or personal use.
However, they are mostly used by SMEs who are unable to own their warehouse.
They are the most affordable warehouse even though their technology level is not advanced.
Public China Warehouse
These warehouses are privately owned by an individual, who could be a manufacturer or a supplier.
They are more expensive than the public warehouse. Nevertheless, they provide great services to customers who need both short and long-term storage space.
Bonded warehouses are owned and managed by the government and private organizations.
They store imported goods before payment of custom duties.
There are three main types of China Bonded Warehouses based on the use; public, self-use and dedicate bonded warehouse.
They have special facilities enabling you to store your goods for an extended period.
The warehouses can only release your goods after you have paid duties.
This is the best warehouse selection if you are an importer.
The main reason is because they store your cargo free from duty until you get a buyer.
These warehouses are run and owned by cooperative organizations like farmers.
Both members and non-members of the organization can store goods in the warehouse, though members enjoy reduced rates.
The primary aim of this type of China warehouse is to support members and not to make profit.
These types of warehouses are built for a specific purpose.
The stores have large space but they keep goods for a short period.
Products move very fast in the supply chain.
Perishable goods for instance should be distributed within a day.
Rent payable is affordable and you will commonly find them near the transportation center to ease access.
These warehouses have certain environmental conditions meant to keep the product fresh and safe.
They look like the other warehouses on the exterior but differ in the interior.
In some, you have to wear special garments to get in.
It may require extra maintenance in terms of temperature and heat exchange, but it keeps products fresh.
You should store any product that can easily spoil at normal room temperature in a cold warehouse.
Such products may include flowers and plants, food, and pharmaceutical products.
This refers to an advanced type of China warehouse in terms of storage, fulfilment process, and management.
They have automated everything, and use robots and drones to execute tasks like packaging.
The warehouses are common with big companies likes Amazon due to their speed and accuracy.
How can I Monitor my Inventory Levels in China Warehouse?
You can easily track your inventory using systems put in place to monitors its movements; thanks to technology.
Using RFID technology or barcodes on your products, you can get to know the state of your goods.
You will receive a notification in case of any movements on your goods.
The systems are accurate and free from human error.
Is China Warehouse Secure?
China warehouse is very secure.
Most of them incorporate the following security features:
i. Supervise the process of loading and offloading cargo.
ii. There are 24/7 CCTV surveillance and a dedicated security team that ensures tight security.
iii. Storage method depends on the nature of goods. Most store perishable goods in temperature-controlled environment, while expensive and fragile products are placed in highly secured environment.
iv. China warehouse uses WMS for inventory counts.
v. Motion detectors sense people’s movements, especially during odd hours.
vi. Environment control sensors monitor the temperature of the warehouse and act fast in case of a fire outbreak.
What is the China Warehouse Fulfilment Procedure?
The warehouses use advanced technology to simplify their fulfillment procedure.
They pick goods, pack them, store and ship them to your customers when the demand arises.
You will receive an email notifying you that the goods are in transit.
The main aim is to create an incredible experience for their customers.
How can I Maximize my Storage Space within China Warehouse?
Most warehouses run out of space either because of high demand for products stored, overbuying or dead stock in the warehouse.
Crowding in the warehouse is what you need to avoid.
Below are some of the ways you can make the most out of the space you already have:
i. Extend your racks vertically to create more space.
ii. Change your storage medium from single-deep to double-deep rack.
iii. Introduce direct put away. This is where the management system directs where to place the pallets as opposed to letting people place wherever they want.
iv. Install a mezzanine between the ground and the first floor. it will double your floor space.
v. Separate slow-moving stock from the fast-moving ones.
vi. Reduce the aisle say to 5-8ft. Ensure the space left is only enough to handle the traffic.
vii. Identify any bare space in the warehouse and utilize it i.e. above the doors.
viii. You can store some goods in the trailer for a short period. But remember that you will pay demurrage charges.
China Warehouse Mezzanine
How can I Save Space in my China Storage Warehouse?
Below are some of the ways you can save space within your China warehouse:
i. Consolidate small shipments in the warehouse.
ii. Utilize vertical space. You can add tall storage units and introduce equipment to be used to pick and store the items.
iii. Consider using shelves. However, it should depend on the size and weight of the products you want to store.
iv. Use pallets to store large items. Small items may disappear in the spaces.
v. Incorporate standardized bins to ensure neatness on the shelves.
vi. Use racks and crates in the warehouse.
What is the Difference Between Cross-docking and China Warehouse Storage?
These are common terms in international trade that some people use interchangeably despite there being a difference between them.
In cross-docking you unload the goods from a truck, sort them, and directly reload onto another truck.
Essentially cross-docking gets rid of the storage process from the supply chain.
You use the term cross because cargo crosses the dock from inbound to outbound with little or no storage.
It helps you reduce inventory handling and storage costs in addition to ensuring faster delivery of goods to final destination.
Warehouse storage on the other hand is the act of keeping goods in the warehouse to be sold or distributed later
Goods may take a while before getting to the customer.
On the bright side, some like wine may improve in quality.
You may sell the stored products during peak seasons and make more profit.
It ensures goods are safe before getting to the customer
What is a China Warehouse Management Software (WMS)?
WMS is software used by China warehouse to record and manage most of the activities in the warehouse.
The activities may include inventory management, shipping, receiving goods, picking, and packing among other services.
What does Warehouse Management Software do?
WMS basically helps you to plan, organize and enhance your warehouse.
This software ensures the flow of goods in a warehouse.
It manages stock and inventory.
The system helps you to provide the required goods at any given time.
WMS is installed according to the size of the warehouse, its complexity, and the number of operators.
It is a perfect instrument even if only a few products are in stock.
The system provides you with automated pick lists and you can receive notifications on the phone.
It manages the movement of stock from when it enters the warehouse till it leaves.
What are the Benefits of Warehouse Management Software in China Warehouse?
WMS comes with the following advantages:
i. It improves the level of customer service.
ii. It ensures safety in the warehouse.
iii. It improves the relationship between the warehouse operators and suppliers.
iv. It ensures accuracy in terms of pick-up and inventory management.
v. It reduces labor costs and too much paperwork.
vi. It enhances the design of the warehouse.
vii. It provides you with quality, accurate data all through the supply chain.
When should I Consider Warehouse Management Software and why?
Below are some of the instances you should consider purchasing WMS:
i. If your customers are constantly complaining because of shipping issues.
ii. If you have no enough space due to lack of maximizing the available space.
iii. If your business is growing swiftly hence it can’t withstand the demand without WMS.
iv. If your warehouse has a lot of return cases. Mishandling of goods during pick up leading to frustrated customers.
v. If your team takes too long on inventory such that you have to hire more staff to manage inventory. This is especially during peak seasons.
vi. If you have a lot of old inventory stored all over the warehouse even on the aisle.
vii. If you are unable to quantify the performance of your pickers and workers.
viii. If once your goods get to the warehouse, they take too long to be ready for sale.
China Warehouse Automation
How Much does a Warehouse Management Software Cost?
Well, requirements for Warehouse Management System are very specific to individuals.
It may vary from one customer to another.
First, it is important to understand the scope of work associated with the processes involved.
Hence, it’s not possible to provide a fixed price for WMS.
However, while purchasing WMS there are fees such as license, internal costs implementation, and hardware that you should familiarize yourself with.
What are the Characteristics of an Ideal Warehouse in China?
There are various characteristics of a good warehouse.
It’s advisable to come up with a list of what you want so that you can compare it with the results available.
Choose a warehouse that:
i. Is close to a port, airport, or cargo terminal. It will reduce your shipping cost.
ii. Has adequate storage equipment not forgetting loading and offloading tools.
iii. Employs a 24/7 monitoring system to ensure safety of goods.
iv. Features adequate space for storage and parking space to facilitate loading and offloading.
v. Has firefighting equipment.
vi. Incorporates a storage unit that suits your business.
vii. Is affordable to you.
viii. Checks the quality of goods before receiving them.
ix. Has the right software to handle materials and manage the warehouse.
How do I Choose the Ideal Warehousing Service in China?
Now that you know the features of the perfect warehouse, it’s up to you to choose one with services that suit you.
Study your business to find out what services you require.
Whether you want short or long-term storage or additional services such as labeling and packaging.
Research by looking for a warehouse with the services that match your taste and preference.
Moreover, budget for everything bearing in mind you will be charged each additional service.
Choose a warehouse that you can afford.
Once you are done, you can settle for the warehouse that offers what you need.
Can I add Racks in China Warehouse?
Yes. In the effort of maximizing space available in the warehouse, you can introduce racks with different heights, lengths, and depth.
You can use these racks to store clothes and shoes, flowers, glass, jewelry, magazine, etc.
Racks save space and ensure neatness in the warehouse.
Does China Warehouse have In-house Logistics?
Yes, most warehouses in China have in-house logistics services.
Their staffs periodically undergone logistics training, they are capable of carrying logistics by themselves.
This avoids the need to outsource.
Do I Need to Apply Insurance for Goods Stored in the Warehouse?
Yes, this is important since warehouse insurance only protects cargo during storage.
You will be covered in case your goods get lost or damaged while in the warehouse.
Nonetheless, if it happens before goods get to the warehouse or after leaving the warehouse, no one will compensate you.
Cargo insurance is for your own good, safety, and peace of mind.
What are your Warehouses Addresses in China?
You need to have your warehouse address at your fingertips.
All suppliers, manufacturers, and factories you buy from will ask for your address.
Warehouse address will help us know where to deliver your goods.
Your address will depend on the location of the warehouse you settle with.
Can China Warehouse help Prepare my Products to be Shipped to Amazon?
Yes, they can. Amazon only accepts products that are in a good state.
After receiving the goods, your China Warehouse can sort, check quality, pack, and label them according to Amazon regulations before shipping
China Warehouse Amazon FBA Shipping
Can China Warehouse Improve the Packaging before Shipping my Cargo?
Yes, quality services are what China warehouse guarantees you.
If your product packaging is not appealing, they can improve it for you with your instructions.
The warehouse can repackage so that it fits in pallets, save space and also ensure efficient transportation of cargo.
The repackaging process is easier if your deliver the goods in bulk not individually.
Equally sending products well packed and labeled to the warehouse can reduce costs.
What are your China Warehouse Specifications?
Well, here is where your instructions come in.
Most China warehouses provide services according to your specifications.
If you don’t provide specifications, they may fill in the gaps, which you don’t want that.
Therefore, it is advisable to give crystal clear instructions to the warehouse management.
Conditions for building materials may be different from that of perishable goods.
Your specifications may include:
i. The nature of your goods and how you want them stored.
ii. Whether we should repackage, label, or consolidated your goods.
iii. Equipment that should be used to handle the cargo.
iv. How long we should store them.
What Carrier Options do you Offer for Shipping Cargo from your Warehouse?
Selecting means of transport from the warehouse to final destination depends on factors like nature of goods, distance to cover, urgency, etc.
You need to choose a carrier that best fulfills your organization’s requirements and supply chain needs.
If your goods are perishable, lightweight, or are needed urgently, use air freight.
On the other hand, in case they are bulky goods or need to cover long distance, then consider using sea freight.
Similarly, you can use trailers to transport the goods to your destination when your premise is not far from the warehouse.
Railway is also a cheap option for transporting bulky goods.
Can I store Dangerous/Hazardous Goods in China Warehouse?
Yes, you can.
Countries like Australia have their difference between dangerous and hazardous goods.
However, in international trade, these two terms are more or less the same.
Dangerous/hazardous products are not just petroleum and chemicals.
Interestingly, perfume and nail polish are considered hazardous.
Here are some of the dangerous products:
These products can cause an explosion, fire, serious injury, property damage, or even death.
Therefore, there is need to label them as hazardous materials.
China warehouses have purposely built sections for storing and moving hazardous cargo.
They follow strict international regulations by safely storing your shipment so that it poses no harm to others
What is the Order Fulfilment Turnaround Time for China Warehouse?
Order fulfillment turnaround time refers to the time you submit your goods for processing to when the package is ready for recollection.
They typical order fulfilment turnaround time varies depending on day of the week:
i. Monday to Friday: These are the working days of most warehouses. The process is fast and takes 8 hours.
Orders delivered between 10.00 and 24.00 may be ready within 24 hours. Those submitted past 24.00 can be dispatched the following day at 10.00.
ii. Saturday: Most warehouses are off duty.
iii. Sundays: Turnaround takes 17 hours.
Orders delivered between 10.00 and 17.00 may be ready within 24 hours.
Those delivered past 17.00 might be ready the following day at 10.00. though it’s not a guarantee.
iv. Legal holidays: Most, if not all are off duty and turnaround will be twice prolonged.
What is the Procedure for Making a Claim for Lost Cargo in China Warehouse?
Once China warehouse receive your cargo, you transfer all the responsibilities to the management.
In case your goods get lost, they shall bear the liability.
However, it’s advisable to insure your shipment as an added layer of protection.
i. Don’t sign the bill of landing before checking the state of your goods.
ii. When you receive your cargo, carefully check to see the damaged and missing items.
iii. Take photos and inform the carrier within 10-15 days, preferably communicate immediately.
iv. Don’t refuse your shipment, just stay with it. Failure to which you may not get the full freight claim amount.
v. Fill out a shipping or cargo claim paperwork. Write a reasonable price meant to recover freight, not any profit.
vi. Pay your freight bill as you wait for your compensation from insurance.
vii. Keep all documentation i.e. bill of landing, packing list, and all photos.
viii. Insurance will compensate you after carrying out all the necessary investigations.
What Tools do China Warehouses Use to Ensure you can Find your Inventory?
China warehouse uses the following system management tool:
iv. Sphere WMS
This online management software helps you manage through the system and gives you complete control of goods stored in the system.
They will even alert you when your inventory is too low.
The software provides you with a clear overview of the current project from the stock available to the efficiency of the supply chain.
China Warehouse Inventory Taking
What Happens if there is a Discrepancy in the Inventory Count Between me and the China Warehouse?
An inventory discrepancy may occur if the inventory stock at hand differs from number of goods recorded in the inventory system.
This is a rare occurrence in China warehouses however, it may occur because of human error, misplaced returns, etc.
In case it happens, the warehouse management will be responsible.
They shall do a physical stock taking between the inventory record and the actual stock at hand.
A checklist will help in ensuring:
- Accurate recounting of stock
- There is no wrong placement of stock
- Correct recording of units
- Description in the inventory match product count, and
- Delivered orders are included in the stock.
Thereafter, they will update their inventory record to ensure it reflects the physical goods in the warehouse.
Can China Warehouse Service Pick up my Order from the Supplier?
Absolutely, your supplier doesn’t have to deliver the goods to the warehouse.
Most China warehouse can pick them, take care of all logistics and store them for you.
How does Cargo Consolidation Work in China Warehouse?
If you are dealing with a variety of goods from different suppliers, separate consignment may be too costly for you.
You should consider cargo consolidation since it will save you money.
Cargo consolidation is one of the services China warehouse offers.
They receive packages from different suppliers at once then merge them into one packaging.
This saves space and eases the tracking process.
What is China Warehouse’s Processing Time for Incoming Goods?
It is not easy to quantify the processing time for incoming goods in China warehouse.
After receiving the goods, most warehouses:
i. Check whether your delivery matches your order.
ii. Check the quality of the items received.
iii. Log items in your inventory
iv. Allocate space according to the nature of goods.
It a process that may be affected by the nature and volume of your goods and the time you checked in the warehouse.
What kind of Equipment does China Warehouse Use to Manage Goods?
China warehouse uses the following materials to make work easier.
ii. Utility carts used to transport tools and materials.
iii. Integrated and edge dock levels.
iv. Dollies used to move bulky items and equipment.
v. Yard ramps that are helpful during the unloading process.
vi. Truck restraints
vii. Bumpers having rubber bumpers meant to protect the loading dock.
viii. Scale and check weighers.
ix. Safety equipment which contains first aid, emergency wash station, etc.
x. Craned and hoist helps raise equipment.
China Warehouse Forklift Application
What does ‘Free Warehousing’ mean in China Warehousing and Logistics?
It simply means, if you partner with the warehouse, they can store your goods for free for 30-60 days.
How long will China Warehouse keep my Cargo?
China warehouse can store your goods for as long as you want.
Whether it’s for a day or a whole year; you are the boss and it does as you wish.
What are my Payment Options for China Warehouse Services?
There are various payment methods that china warehouses accept including:
i. International wire Transfer: Bank to bank money transfer is a common method and best if you know have a relationship with the warehouse.
This requires both you and the supplier to pay a fixed fee. Charges are a bit high you need to convert bank rate to foreign exchange.
The method may take 2-5 business days. It’s safe since the bank checks the credibility of a person.
ii. Escrow: Here a third party holds your cash and releases it once you instruct them to.
iii. Letter of Credit: The bank issues this letter to the seller. It guarantees payment on behalf of the buyer.
It’s an expensive method that involves a lot of paperwork.
iv. PayPal: This method is advisable if you are making small payments. PayPal charges a percentage on the amount being transferred plus the currency conversion fee.
v. Sourcing Agent: If you have a reliable, trustworthy agent, you can pay your warehouse fee through them
vi. Cash: It’s an acceptable method for a small amount. If you are in China or have a representative, then you can pay cash.
vii. Western union: Its convenient method of sending money worldwide. However, it does not protect you in case you lose cash in addition to its high charges.
What are some Policies to Consider when Using China Warehouse Services?
While looking for a warehouse, cost and location are not the only things to consider.
Get to know the policies that govern the warehouse before making your final decision.
You can even check their previous records with their clients.
Below are some of the policies you can consider:
i. Record keeping and reporting.
ii. Health and safety measures.
iii. Security and pest control.
iv. Reverse logistics and returns.
v. Disposal of outdated and damaged goods.
vi. Human resource management.
vii. Maintenance and cleaning.
What Industries does China Warehouse Specialize in?
Most China warehouses specialize in the following industries:
i. Consumer goods
ii. Logistic services
iii. Industrial materials
iv. Refrigerator warehousing
v. Combustible materials.
How do Seasonal Fluctuations Affect China Warehousing?
Like any other business, warehousing has peak and off peaks seasons.
Specific trends and events such as Christmas and Lunar New Year may trigger an increase in demand for certain goods.
These events occur in a short period leading to a peak season in shipping.
Such seasons affect the price.
You will pay more per square meter because the demand is high and people are willing to spend.
Most businesses and factories close for holidays; employees take some time off to celebrate.
These can cause a significant delay in shipments and negatively affect the supply chain.
Can I Customize my Services with China Warehouse?
Sure, the warehouses can provide you with unique customized services.
They employ appropriate equipment and technology to ensure the entire process is convenient for you.
China Warehouse Picking Robot
What are China Warehouse Operation Hours?
Some China Warehouses operate for 8 hours a day and 40 hours a week.
However, demands that cannot be met by working for 40 hours a week has pushed some to work 24/7.
To avoid work fatigue, employees work on shifts.
Moreover, the use of automated systems has improved physical efforts in the warehouse.
Hence, it is possible to extend the working hours to 10 or even 12 hours because it’s not tedious.
Some China warehouses also offer part-time jobs to people who want to work at night or over the weekend.
Does your China Warehouse have a Loading Dock?
Yes. We have loading docks where you can load and unload goods from the shipping vessels.
At SourcingWise, we help you find a secure warehouse for all our clients.
You don’t have to worry about any logistics operations.
Together with our partners, we will help you the best China warehouse for your goods – talk to us now.