INSIGHTS | CASE STUDY #1
European Multinational Company in the consumer electronics sector
The company had established multiple manufacturing plants in Indonesia, Thailand and China, producing a wide range of consumer electronic products for Asia and other regions. The company wants to embark on an internal project to optimise the customs duty savings. The cost of goods sold (COGS) is one of the key operating cost component.
The use of ASEAN and the ASEAN-China free trade agreements through its regional headquarters in Singapore were critical in the company’s strategy to reduce COGS for China and ASEAN markets. However, the Management Team recognised the complexities involved and needs the buy-in from all business stakeholders. This was essential to make the initiative successful as the supply chain flows had to be significantly modified for the end state to have the distribution hub in Singapore set up before goods were distributed throughout ASEAN from China and from ASEAN to the China market.
Benefits to company: