Success Stories of Hong Kong's Logistics Industry
Outsourcing of Logistics Services is the Global Trend to Archieve Cost Efficiency
Outsourcing the logistics service
to better utilize the Company's resources
MGI Luxury Asia Pacific Ltd. – a subsidiary of the American entity MOVADO Group, Inc., carries a number of brand name watches, designs and manufactures trendy watches for several stylish brands. The Company has outsourced part of its warehouse management and value-added services to a third-party logistics services provider in Hong Kong. Bosco Cheng, its Customer Service Director, Asia, explained why they have chosen Hong Kong as the logistics hub.
| Q: |
Why did MGI set up its logistics hub in Hong Kong? |
| A: |
Hong Kong is one of the world's major retail and export market for watches. Having the logistics centre in Hong Kong can help to quickly deliver the goods to their designated locations. The fact that Hong Kong is a free trade zone with no import tax also benefits the operations of reverse logistics. |
| Q: |
What do you think are the advantages of outsourcing your warehouse management and value-added services to a third-party logistics services provider? |
| A: |
The period from September to November is the peak season for the watches industry to dispatch their goods. This is the time when the demand for labour and warehouse space reaches its peak. A third-party logistics company will provide flexibility to our manpower and warehouse space. They can also assist us in putting appropriate labels on the products according to the import requirements of different countries around the world; thus frees us from taking care of these procedures and allows us to concentrate on the development of our core business. |
| Q: |
Would you consider outsourcing more work procedures to a third-party logistics services provider in Hong Kong? |
| A: |
Of course, this is a global trend. We will in the future, consider outsourcing to a third-party logistics services provider the coordination with distributors and customer services, thereby enhancing the overall operational efficiency of our Company. |
