Monday, March 24, 2003
Casio Computer set to move its distribution center for markets where it lacks local sales arms, from Singapore to China by March 31, the end of its fiscal year, company sources said.
The aim is to further speed up product shipments to such markets at a time when its production in China is expanding. Casio will close the current distribution center in Singapore after completing the relocation.
The new distribution center will be in a 16,000-sq.-meter portion of a large Nippon Express Co Ltd warehouse in Shenzhen, which Casio has probably leased from the transportation firm.
Casio has already dispatched about 70 employees to the warehouse to practice various procedures prior to the beginning of product shipment, such as packaging products on a destination-by-destination basis and inserting operating manuals into packages.
Casio has concluded that it makes more business sense to move the distribution center to China, given its rising production of watches, calculators and electronic musical instruments in that country.
The relocation will save Casio the trouble of transporting products from China to Singapore, including customs-clearance procedures, enabling it to shorten delivery times to destinations in neighboring countries by up to 10 days. The move is also expected to reduce Casio's distribution costs by more than 300 million yen a year, the sources said.
Casio's overseas sales ratio has been rising in recent years, reaching 41.7%, or 159.4 billion yen, in the year ended March 2002. The company plans to shift production of musical instruments from Mexico to China in the near future, a move that will lift output in China to more than 90% of total overseas production.
By: Docmemroy
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