This Case Study shows how a Customs strategy can fuel a SME international growth.
An SME’s award-winning products caught the attention of a large Oil & Gas operator. This global operator needed to have the tools available in stock, near their various production sites in several countries for fast deployment when required.
The transaction: Global inventory for global customers
Our client is an SME with global ambitions. Their international strategy was to grow they global operations by following their customers. A strategy that is often used in the Oil & Gas sector. They had rental contracts for their equipments with Oil & Gas operators in Scotland. They wanted to supply their equipment to the operators’ other production sites around the world. When they received a quotation request from one of their customers to supply their equipment to all their site, they were over the moon. However, the customer wanted the equipment stored near their production facility. They were already carrying a large inventory in the UK could not invest in additional stock. They were also not ready to have an entity in several countries. It was all happening too fast for them.
The solution: Align the Customs Strategy to the Business Strategy
We believe Customs management should be put to the service of the business strategy. It was therefore natural to use our client’s international strategy as a blueprint for their Customs strategy. The objective was to design a Customs strategy that would align with both our client’s constraints and their customers requirements
The implementation: Alegrant’s experts in action
We worked with their logistics, sales and finance department to review their inventory positions. By combining a variety of mechanisms such as: central inventory management techniques, 3rd party logistics provider contract, multi-country bonded warehouses we built a regional logistics hub. As a result, we have been able to reposition their current UK inventory between the EU, Australia, Azerbaijan and UAE to serve the operator’s production sites across the region.
We set up their internal processes and a Customs procedure to ensure they continually comply with Customs requirements so they keep their various authorisations.
The equipment is positioned close to the customer’s sites ready for delivery under 24h. It can be moved between countries according to the customer’s request, in most cases, free of duties. The SME won this contract and gain visibility for their products with other similar operators. They now operate the same model on 3 continents.
Additional ressources
Customs authorities around the world
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