Unified Bonded Warehouse Management Cuts Storage Costs by 35% | Meito Inc. Case Study
Unifying Japan-China Inventory in a Bonded Warehouse, Cutting Storage Costs by 35%
Flow Diagram — Food Bonded Warehouse Unification × Japan-China Allocation
Inventory unified across 7,300 ㎡ of Nanko bonded space, allocated to Japan and China as demand requires
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Project Overview
As a domestic Japanese food brand selling in parallel to both the Chinese market (cross-border e-commerce) and the Japanese market, this client had been managing the same products as separate inventory across warehouses in both Japan and China. Overstocking, upfront duty payments, and inter-warehouse transfer costs accumulated, creating a significant operational burden over the course of a year.
Client Challenges
- The same products managed as separate inventory in Japanese and Chinese warehouses, causing overstocking
- Upfront duty payments on shipments to China straining cash flow
- Inventory transfer costs incurred between the Japanese and Chinese warehouses
- Difficulty flexibly allocating inventory across sites in response to demand fluctuations
Our Proposal & Response
Unified Japan-China Market Management at Meito's Nanko Bonded Warehouse
We consolidated inventory into 7,300 ㎡ of bonded space within Meito's Nanko Logistics Center. We established a system in which customs clearance is performed only for domestic Japanese shipments, while goods destined for China are shipped directly via ocean LCL customs clearance while remaining bonded. This reduced upfront duty payments to "Japan sales volume only," achieving an average cash flow improvement of ¥2 million per month.
- 7,300 ㎡ bonded warehouse unifying inventory for both the Japanese and Chinese markets
- Customs clearance only for Japan sales volume → reduced upfront duty payments
- Goods for China remain bonded → shipped directly via ocean LCL customs clearance
- Real-time Japan-China allocation possible according to demand
Results
| Item | Before | After | |
|---|---|---|---|
| Storage Cost | ¥1.65M/mo combined Japan & China | → | ¥1.07M/mo (-35%) |
| Number of Inventory Sites | 2 sites | → | 1 site (allocation within bonded area) |
| Upfront Duty Payments | Full volume paid upfront | → | Japan sales volume only (¥2M/mo deferred) |
| Inventory Transfer Trips | 8/mo | → | 0 |
Client Testimonial
By unifying everything in the bonded area, our operations became as simple as "clear customs when it sells in Japan" and "ship directly when it sells in China." Overstocking has been completely eliminated, and our cash flow has improved dramatically.