Lead time monitoring or planning delivery and production deadlines
AVM Logistics will monitor for you not only the delivery of goods but also their production lead time. You will avoid any delays in shipment by Chinese manufacturers. Our logistics expert will take care of this.
Lead time monitoring - a new service that is just becoming popular in Russia and combines Production Lead Time and Delivery Lead Time.
Production Lead Time — the period from PO placement until the shop full readiness of goods;
Delivery Lead Time — the period from readiness of goods to delivery thereof to the Russian Federation to the Client's stock.
When ordering this service you will reduce the time gap between the shop readiness of goods and import thereof to the Russian Federation. Since we will monitor both production and delivery of goods. When the goods are ready in the shop we will reserve a seat for your goods at the terminal in China. You will reduce costs, improve efficiency of business processes and take own burden off if you disburden cares upon us.
Lead time management allows to determine the period from PO placement for production of goods at the selected shop or plant until the finished product issue.
Production deadlines without monitoring
Lead time management service is crucial to everyone who enters into cooperation with Chinese plants. Order this service in cases below:
- a large number of production partners;
- any difficulties in production and delivery lead time scheduling;
- avoidance of your own MTO expert knowing English or Chinese languages;
- regular backlog demand when the goods are out-of-stock and the Client is ready to buy them.
The backlog demand is caused due to erroneous scheduling of sales, production and delivery lead times as well as due to lack of skills, specifics knowledge in cooperation with Chinese manufacturers. In these circumstances you have to use road or air delivery which is more expensive.
AVM Logistics’s logistics experts manage production lead times in 120 plants simultaneously. If you provide us the sales statistics we will estimate which items and when should be delivered to your stock. We will agree these deadlines with the plants and monitor production, shipment and delivery.
Another problem for the clients is difficulties in communications with the vendor in general: language barrier, different mentalities. An inexperienced client will never recognize when a manufacturer is lying. The refusal is not common in China. For example, nobody will say: “No, we won't produce it in due time.” They say: “Yes, your goods are in production now...” But finally it turns out that they have just started production, for some reasons. We know how to overcome these business communication nuances.
- we communicate with the vendor's employees to understand the production specifics or to identify any discrepancies;
- we dig up information on your vendor from various sources: via Chinese Internet and through our vendors. China is a country where many people know each other through someone, especially from the same industry;
- we estimate the penalties for missed deadlines and follow closely the reaction for different penalty amounts;
- we send a technical expert for interim quality control.
Our long relations with the partners from China allow to suggest our clients several solutions at once according to their preferences. This is especially important for small companies, without an experienced MTO expert. Lack of such expert as well as of knowledge will result in errors and delays.
When you should grow wary that the manufacturer may miss the production lead time
Factors indicating that the vendor may miss the deadlines:
- vendor's unwillingness to inform the particular production deadlines for your order especially if the entrepreneur wishes to send the inspector;
- vendor's unwillingness to approve reservation for the ex works container shipping although the shipping date is exactly after the vendor's promised date of readiness;
- vendor's wish to communicate indirectly, through a middleman;
- manufacturer has other orders that are more valuable to him and prioritized;
- lack of understanding of the actual volumes of orders placed and skills in workload planning among the plant’s representatives;
- holidays in China and events that were not considered during contract drafting.
An experienced logistics expert may agree the factors affecting the result in advance. Play it safe if you have no such an expert.
AVM Logistics will assist in saving delivery deadlines. What we can do:
- we ensure a preliminary manufacturer's reliability control;
- we constantly keep in touch with the Client;
- we know the country mentality and communicate with the manufacturers in Chinese;
- we clarify the production cycles, nuances, stages in advance, we compare the data obtained with other same industry plants to verify the information;
- we discuss any discrepancies, sometimes we send our employees to the plant to take a closer look;
- we ensure quality control of finished products, we protect the Client against risks of defective products;
- we schedule the delivery and production lead times in China and evaluate the deadline risks;
- we identify the manufacturer’s and the contract vulnerabilities, inform the Client thereof, offer different mitigation measures;
- we warn the clients of any emergencies if any. For example, a fire in the plant.
AVM Logistics works with the legal entities via bank transfer. We provide a personal manager for each Client.
- Basic services
- Additional services