Supply Chain Council of European Union | Scceu.org
Freight

SEKO Partnership Provides Ecommerce Efficiencies for Retailers

Tags: Retail, Partnership, E-commerce

Retailer Shein streamlined supply chain operations by leveraging the partnership between Air-City and SEKO, allowing shippers to move express ecommerce orders efficiently across international borders.

In June 2019, SEKO acquired New York-based freight forwarder and Cross Border ecommerce shipping expert, Air-City, Inc. to become the only forwarder with the ability to process Type 86 (T86) shipments via air freight, as well as ocean freight. Looking at clients through a different lens, the team approaches partnerships, not for the sale, but to build lasting relationships that make a difference.

THE CHALLENGE

After much research, initiative, and a trip to Shein headquarters in Guangzhou, China, e-tailer Shein agreed that swapping their ECCFs (express consignment carrier facilities) for a trial of T86 could drastically improve their supply chain.

Air-City’s Section 321 and T86 entry expertise provided Shein with the ability to manage bulk parcel Customs clearance to avoid delays and allow for the quick release of thousands of parcels at low cost with service speed options.

THE SOLUTION

Although big e-tailers thoroughly understand their industry, sales can be restricted by not knowing what is needed. Air-City had the product to decrease time, reduce cost, and streamline their supply chain.

Shipping 1 million parcels a month, Air-City’s swift implementation of T86 opened doors to combat Shein’s sales plateau by enabling more choices and providing increased promotional opportunities for new business.

Effective Oct. 1, 2019, T86 offered Shein an instant savings of $1 per parcel—totaling a staggering $1 million per month savings. In addition to the monetary savings, T86 supports remote filing and is completed electronically—which enables expedited clearance of Section 321, T86 deliveries using the Automated Broker Interface (ABI) to provide the necessary information and receive the required release messages.

For all products being shipped, Air-City’s innovative search software enables the conversion of shipper-provided HS codes for all products being shipped into U.S. acceptable Harmonization Codes.

Air-City’s bonded warehouses in major gateways, such as JFK, enable Shein to control their own KPIs and service levels. Transit time is faster, and a steady foundation, based on a shared drive for efficiency and partnership, has been built.

Air-City is now one of Shein’s biggest Cross Border brokers. Their Section 321 low value shipment and T86 Customs clearance expertise provides Shein with the necessary liaison to streamline operations and efficiently execute transactions to maximize profits.


To learn more:

email: hello@sekologistics.com

phone:
630-919-4800

web: sekologistics.com

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