The following is a logistics cost optimization strategy for kitchenware export, combined with industry pain points and feasible solutions, organized in modules for reference:
- Product packaging optimization
Lightweight and standardized design
Use lightweight materials such as honeycomb paperboard and biodegradable foam to replace traditional wooden boxes to reduce packaging weight (sea/air freight is charged by weight or volume).
Use standard size packaging (such as ISO container size) to avoid additional costs due to oversize.
Combination packaging and nesting design
Design nesting structures for stackable products such as pots and tableware to reduce volume occupation (for example: separate packaging of pot lids and pot bodies).
Provide “SKU set” exports (such as kitchen knife combination packs) to reduce the frequency of scattered transportation.
- Transportation mode selection
Multimodal transport strategy
Sea transportation is the main choice: For kitchenware with low timeliness requirements (such as cast iron pots), full container (FCL) sea transportation is preferred, which is 30%-50% lower than the cost of bulk cargo (LCL).
Air-rail transport: High-value kitchenware (such as high-end stainless steel kitchenware) can be transported in sections via China-Europe Express + air transport, which saves 20%-40% compared to pure air transport.
Dynamic transport combination
Book space in advance during peak season (such as before Christmas in Europe and the United States), and use bulk cargo LCL during off-season; use logistics platforms (such as Flexport) to compare prices and lock in low-priced space.
- Warehousing and inventory management
Overseas warehouse pre-positioning
Lease third-party overseas warehouses in target markets (such as the United States and Europe), prepare large quantities of goods in advance by sea transportation, and localize distribution to reduce single-piece logistics costs (Amazon FBA warehouses can shorten delivery time to 1-3 days).
Note: It is necessary to balance storage fees and unsalable risks. It is recommended to predict sales through historical data.
JIT (Just-in-Time) replenishment
Negotiate delivery cycles with customers and adopt a “small batch and high frequency” replenishment model to reduce inventory backlog capital occupation.
- Tariff and customs clearance optimization
HS code accurate classification
For example: stainless steel kitchenware (HS code 7323.93) and ceramic kitchenware (HS code 6911.10) have large tariff differences, so it is necessary to ensure accurate classification to avoid fines or demurrage fees due to incorrect declaration.
Utilize free trade agreements
Enjoy tariff reductions through certificates of origin (such as China-ASEAN FORM E, RCEP certificates) (tariffs for some kitchenware exported to Southeast Asia can be reduced to 0%).
Pre-clearance
Submit customs declaration documents in advance, quickly clear customs after arriving at the port, and reduce container demurrage fees (usually US$50-200 per cabinet per day).
- Data and technology driven
TMS (transportation management system) application
Analyze the cost and timeliness of each route through the system (such as Oracle TMS) and automatically select the optimal route. For example: comprehensive cost comparison of Shanghai→Los Angeles shipping (14 days) vs. Qingdao→Rotterdam (30 days).
IoT tracking
Add temperature and humidity sensors to the packaging of fragile kitchenware (such as glass products) to avoid damage claims during transportation.
VI. Collaboration between suppliers and customers
FOB to CIF/DDP
For small and medium-sized customers, we can provide door-to-door (DDP) services to reduce unit costs through large-scale shipping and improve competitiveness.
Negotiate with large customers to bear part of the logistics costs (such as the buyer pays the post-arrival costs under CIF terms).
Supply chain finance
Cooperate with banks to provide letter of credit discounts, shorten the collection cycle, and alleviate the cash flow pressure caused by logistics accounts.
VII. Risk hedging
Long-term contracts lock in freight rates
Sign an annual agreement with shipping companies (such as Maersk and COSCO Shipping) to agree on the base price of some shipping spaces to avoid peak season freight rates (such as the US line freight rates soared 500% in 2021).
Insurance optimization
Compare the rates of institutions such as Ping An and Sinosure, and reduce the insurance ratio for low-risk general goods (such as silicone kitchenware).
Implementation suggestions
Pilot verification: select 1-2 main routes (such as China → Germany) to test the overseas warehouse + sea freight model and compare the traditional direct mail cost.
KPI monitoring: track “logistics cost to revenue ratio” (industry average of about 8-12%), inventory turnover rate, and order fulfillment time.
Through the above strategies, kitchenware export companies can comprehensively reduce logistics costs by 15%-30%, while balancing time and customer experience. The plan needs to be dynamically adjusted according to product characteristics (weight, value, fragility).