Trade Facilitation in the Textile Industry: A Case Study from Difuzed
The textile industry is a complex and global supply chain that involves multiple stages, from raw material sourcing to product delivery. The industry faces a number of challenges, including fluctuating demand, increasing competition, and changing regulations. In order to remain competitive, textile companies must optimize their supply chain to minimize costs, reduce lead times, and improve customer service. This case study examines the trade facilitation efforts of Difuzed going to market in China.
Difuzed develops official licensed lifestyle products for a wide range of brands across gaming, entertainment, and global brands. With a 360° approach they design, produce, and distribute apparel & accessories collections. The company has operations in more than 50 countries in various retail channels. They work together with retailers in all tiers across the globe. Including independent gaming stores, specialty retail, department stores, fashion-forward, super- and hypermarkets.
Difuzed faced several challenges in its supply chain, such as long lead times for local deliveries in China. Also, they struggled to enter the market in China and have from the start control and visibility of their sales channels in China. Difuzed with having no presence of their local back-office services, it also could affect customer service levels and customer intimacy.
To address these challenges, Difuzed implemented the Ahlers Trade Facilitation services to have fast local deliveries to their customers, and local back-office facilities to have optimum order processing in a compliant way, whilst at the same time achieving high customer service levels.
Difuzed worked closely with its suppliers and Ahlers to improve communication and transparency. With that, the deliveries from the Difuzed warehouse in the Netherlands to Ahlers in China are more cost-effective in a shorter time frame, driving a smooth process for product registration, customs clearance, and product labeling.
By having local stock at hand when they need it in Chine, Difuzed was able to optimize their local stock levels close to their customers in the region, whilst at the same time guaranteeing optimal stock levels in the central warehouse in the Netherlands.
By using the Ahlers Trade facilitation services in China, Difuzed benefits from having local staff who can do all the order processing, invoicing, accounting, and tax in a compliant way according to the legislation in China. Also through the local Ahlers team, language barriers disappeared and their customer service improved dramatically.
As a result of these initiatives, Difuzed was able to enter the market in China in a cost-effective way, whilst at the same time they were able to increase revenues and customer intimacy.
Now they are expanding their local sales channels. Leveraging the Ahlers Trade Facilitation platform they now have full control of their Route-to-Market, allowing them to focus on the different sales channels and marketing initiatives. Besides increasing their revenues, they also can assure on-time delivery to their customers.
The case study highlights the importance of supply chain optimization by selecting the right trade facilitation service provider with local knowledge in the market in China, both from a back-office perspective and a supply chain perspective, with a focus on the textile industry.
By working closely with Ahlers, companies can achieve significant improvements in performance and competitiveness.