Complex Multi-Layer Shipment for Global Client
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Destination Country: Australia
Ship From: Germany
Shipment Type: High-value IT Hardware
A global technology firm needed to transport vital data center equipment from two of their data centers in Australia to multiple locations in Germany. The shipment involved 400 racks of high-value IT equipment and posed a number of logistical and bureaucratic challenges. According to the firm’s internal policies, each local subsidiary was required to buy and sell within the country where they operated. The policy ruled out cross-border transactions.
This was a job for a specialist Importer of Record (IOR) like TecEx. TecEx organized the shipping process and assisted in structuring the transaction to conform with our client’s policy. In addition, the transaction raised a number of tax implications. TecEx harnessed its experience and expertise to structure this bespoke transaction to be as tax efficient as possible.
Solving a Logistical Tangle for a Global Client
The Challenge
The logistical demands of the project were enormous. TecEx needed to organize the collection of the equipment from two different locations in Australia. The equipment – a huge load comprising over 40 containers – needed to be palletized in preparation for shipping. The containers were sent on three different ships, given the quantity of goods.
The sheer size and weight of the equipment made it difficult to transport. We had to carefully plan the route and the timing of the shipments to minimize warehouse costs and ensure the equipment arrived on time.
The shipment crossed multiple borders, so we had to comply with customs regulations. We worked closely with customs authorities in both Australia and Germany to ensure that the shipment was cleared quickly and efficiently.
Since global trade can also have serious tax implications due to varying regional tax laws, the shipment also had to be structured to consider the tax outcomes. We worked with the client to structure the transaction to minimize their tax liability and maximize tax efficiency.
For the client, the whole process happened seamlessly. Once the equipment was collected, the client had no further involvement in the shipping process, managing logistics, or dealing with bureaucratic paperwork.
Through TecEx as a single point-of-contact, our client initiated a complex chain of logistical events with the reassurance that TecEx was managing every stage of the process, from collection to delivery. At the same time, the client received regular reporting from their TecEx liaison, keeping them up to date at all times.
The Solution
Managing shipping was just the first stage of the transportation process. Upon arrival in Germany, the goods needed to be warehoused, deconsolidated, and delivered to two data centers.
In these situations, timing is critical. Clients will typically have a team of engineers in place to install equipment, and missing these windows will be expensive. Also, late deliveries to data centers can create highly disruptive bottlenecks and be costly to multiple parties.
Of course, while meticulous planning is a hallmark of the TecEx approach, managing complex logistics requires adapting quickly if conditions change. In this case, the shipment proceeded largely as planned. However, our client made numerous changes to the final delivery locations close to the specified delivery date. The TecEx team was able to adapt quickly, ensuring all personnel and equipment were in place as per the changing terms of delivery while still keeping to the specified delivery times.
The Outcome
TecEx can tailor our service to meet our client’s specific requirements. Our client wanted the entire shipment to be managed by TecEx, from collection to delivery.
In this case, TecEx had to organize personnel to remove the goods from the pallets and unwrap them upon arrival at the specified delivery locations. We were also mandated to place equipment in the appropriate sections on different floors at various delivery points.
A massive shipment of equipment had been collected from locations halfway across the world, arriving in carefully staggered shipments, crossing customs with the appropriate licenses, and meeting all regulatory requirements. The equipment was then delivered to the required locations, unwrapped, and installed precisely where needed.
Throughout the process, the client was informed of the shipment’s progress but otherwise had chosen to have no involvement. The only thing our client had to do was show up at the end location and plug in their equipment.
The TecEx Way
Each element of the shipment had its challenges, but the complexity of the overall process amounted to more than the sum of its parts.
Only TecEx can seamlessly manage all of the elements of such a complex transaction. That means peace of mind for our clients. It also means they can initiate a multilayered, highly complex shipment with one point of contact and one consolidated invoice.
Ultimately, this case exemplifies the core TecEx value: building relationships. Beyond our expertise, what sets us apart is our commitment to working tirelessly on behalf of our clients to ensure their goals are successfully met.
Looking for a
similar solution?
Contact TecEx to help with shopfitting, design, and architectural projects in foreign markets. Our global presence, project management, import compliance, and logistics network allow us to offer a comprehensive end-to-end solution for clients throughout the supply chain.
Looking for a
similar solution?
Contact TecEx to help with shopfitting, design, and architectural projects in foreign markets. Our global presence, project management, import compliance, and logistics network allow us to offer a comprehensive end-to-end solution for clients throughout the supply chain.