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News2006

Dalian Kintetsu (China) Expands its No.2 Warehouse within the Dalian Bonded Area,Strengthen its VMI Business
2006/10/25

Dalian Kintetsu Logistics Co.,Ltd.("DKL"), a company registered in China that is part of the Kintetsu World Express, Inc. ("KWE") group, has completed the expansion of its No. 2 warehouse to strengthen its existing Vendor Management Inventory (VMI) business. The expanded warehouse facility began full-scale operations on 16 September.

Dalian as the logistics gateway for three major provinces in northeastern China, namely Liaoning, Jilin and Heilongjiang, has seen a rapid increase in foreign investment particularly by Japanese corporations. With an increasing number of Korean companies commencing operations here in recent years, there are high expectations that Dalian will become a central cog in the logistics network that links Japan, Korea and Russia.
DKL opened its No. 1 warehouse (5,500㎡) in October 2002 and subsequently its No. 2 warehouse (2,000㎡) in March 2006. As a company specializing in freight storage, distribution processing and domestic transport, DKL's operations have continued to expand centering on freight handling for major electrical appliance and automobile parts manufacturers. As the No. 1 freight forwarding company in the Dalian bonded area in terms of custom cleared shipments, DKL is recognized as a pioneer in VMI operations within that area.

VMI operations are distinctive in that the vendor is responsible for inventory replenishment. As the vendor is solely responsible for storage of parts and materials at the warehouse designated by the purchaser to provide just-in-time (JIT) delivery to the purchaser's plant, a company with proven results in bonded warehousing operations, that is able to provide not just transport and inventory control through global IT systems, but also highly refined warehousing operations is required.
Based on its reputation as an established provider of superior VMI services, in addition to expanding its existing businesses with major car-audio makers and landline phones makers, DKL will also commence a new VMI business to service a maker in the DVD industry. DKL will continue to provide required management solutions to a number of vendor companies, that it is expected will result in between 150 to 300 customs cleared shipments per month. Our VMI service has received high praise from our client corporations as a service able to resolve the constant problems of timing control for deliveries from domestic and overseas vendors and tracing of parts.
In the future DKL will expand its VMI operations to serve not only manufacturing companies but also to fulfill the needs of Japanese trading corporations who have established business sites in the Chinese market.

The outline of the expanded No. 2 warehouse is as follows:

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