(Source: https://pltfrm.com.cn)
Introduction
Effective freight management is a key driver of profitability and competitiveness for overseas brands in China. Air freight delivers speed but at a premium, whereas sea freight is cost-effective but slower, making planning and inventory strategy essential. Over the past decade, we have helped overseas brands leverage SaaS logistics solutions, regional warehouses, and smart freight allocation to optimize costs while maintaining delivery efficiency. This article highlights actionable insights for overseas brands balancing air and sea shipping in China e-commerce.
1. Freight Mode Decision Based on Product Type
1.1 High-Value, Low-Volume Products
Air freight suits electronics and gadgets with high profit margins or products tied to seasonal demand. Rapid shipping ensures timely launches and improves customer experience.
1.2 Bulk, Low-Priority Inventory
Sea freight is ideal for non-urgent products, such as packaging accessories or replacement parts. By shipping in bulk, overseas brands achieve significant cost savings.
2. Integrating SaaS for Freight Optimization
2.1 Cost Simulation and Scenario Planning
Use SaaS tools to simulate shipping costs for air vs sea, considering duties, storage, and last-mile delivery. Brands gain actionable insights into cost-efficiency without compromising service quality.
2.2 Dynamic Replenishment and Forecasting
Automated systems monitor inventory levels and predict demand, enabling proactive shipment scheduling. This minimizes emergency shipments that are expensive and inefficient.
3. Enhancing Warehouse and Last-Mile Efficiency
3.1 Regional Warehouse Stocking
Position inventory near high-demand cities to reduce transit time and shipping costs. Brands using this strategy achieve faster fulfillment regardless of freight mode.
3.2 Partnering with Local Logistics Providers
Collaborate with JD Logistics, SF Express, or Cainiao to optimize last-mile delivery. Leveraging local networks reduces cost per delivery and improves reliability for consumers.
4. Managing Compliance and Risk
4.1 Customs Documentation Automation
Accurate customs documentation ensures smooth clearance for both air and sea shipments. SaaS tools can automate this process, reducing delays and penalties.
4.2 Contingency Planning for Delays
Maintain alternative freight options and flexible inventory strategies to mitigate unforeseen disruptions. This ensures continuity in supply while controlling costs.
Case Study: A Japanese Electronics Brand Optimizes Air and Sea Freight
A Japanese electronics brand entering China in 2023 faced rising air freight costs but needed fast deliveries for new product launches. We guided the brand to:
- Use air freight for high-demand devices and sea freight for bulk inventory.
- Deploy regional warehouses in Guangzhou and Shanghai for faster fulfillment.
- Implement SaaS inventory and shipment tracking to dynamically adjust freight allocation.
Within 8 months, the brand reduced logistics costs by 27%, improved delivery reliability, and increased repeat purchases by 22%.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
info@pltfrm.cn
www.pltfrm.cn
