Supply Chain Council of European Union | Scceu.org
Distribution

“Virtual warehouse” strategy could help companies avoid Brexit disruptions, Tigers says | 2020-12-11

As a looming Brexit deadline threatens logistics snags and delays in 2021, the global logistics and transportation provider Tigers Ltd. has launched a new linehaul solution that could help customers minimize supply chain disruptions, the company said.

Hong Kong-based Tigers says the new service complements its “virtual warehouse” offering, enabling customers to physically split their inventory between the U.K. and Europe, while providing control and visibility in one place online.

Working together as a “virtual logistics facility” means that goods can be physically located in both the European Union and the United Kingdom for ease of last mile delivery, as the online solution provides visibility, inventory control, and tariff tracking in a single place.

“From January 2021 we will operate a linehaul between the U.K. and E.U. for goods which have been consolidated at customers’ sites, for either B2B or B2C business to serve their end customer in the E.U. as usual from the U.K.,” Shahar Ayash, Tigers’ regional managing director, Europe, said in a release. “Moving from a ‘one box’ supply chain concept serving the E.U. and U.K. to a ‘two boxes’ supply chain brings benefits, such as simplistic VAT for B2C, speed to market, and last mile cost reduction in a post Brexit environment.”

Many retailers and wholesalers would struggle to implement that strategy without external partners, due to complications such as cost and control of the split inventory, he said. “Some businesses are just not ready yet to open a second location and for them we developed our transportation solution so they can continue to serve the E.U. from the U.K. and vice versa while adopting their supply chain to the new terms and conditions post-Brexit,” Ayash said.

The linehaul solution is a further addition to the Tigers Virtual Warehouse, powered by its SmartHub:Connect (SHC) freight and e-commerce portal, to unify the supply chain from shipping to warehousing and last mile, Tigers said.

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