Manufacturing Logistics for Imported Inputs

Manufacturing logistics for imported inputs

Our manufacturing logistics service moves imported components and raw materials from the Ports of Long Beach and Los Angeles into your plant on the production schedule. We dray heavy containers on company-owned triaxle chassis, hold buffer stock in our Long Beach warehouse, keep duty-deferred inventory in our CBP bonded warehouse and release loads by full truckload or LTL as the line consumes them.

For a plant, the cost of a late container is rarely the freight bill. It is idle labor, an expedited air shipment or a missed customer order. Inbound logistics for manufacturers is about protecting the production plan from the variability of ocean shipping: vessel delays, terminal congestion, customs holds and free-time limits.

Where manufacturer import logistics breaks down

Manufacturers importing through Southern California tend to face the same five pressure points. Each has a different fix.

Buffer stock near the port vs. shipping straight to the plant

A production inventory buffer near the port is inventory held between the ocean terminal and the plant, so that ocean timing and production timing are decoupled. Sending every container straight to the plant is cheapest when arrivals are predictable and the plant has room. Holding a buffer costs storage and handling but protects the line when they are not.

The decision usually turns on three numbers: the plant's days of supply on hand, how far ocean arrivals have varied from plan over the last several months, and the daily cost of a line stoppage. When the variability in arrivals exceeds the days of supply, a buffer is cheaper than the stoppages it prevents.

Example: a plant consumes one container of a molded component per week and keeps five working days on hand. Over the last quarter, vessels arrived anywhere from four days early to nine days late. Without a buffer, a nine-day slip means the line runs out. With two containers' worth held in our warehousing operation and released weekly, a late vessel only draws down the buffer. These figures are illustrative.

How scheduled component releases work

Inbound logistics for manufacturers works best as a steady release rhythm. This is how we set it up.

1. 01
   Define the release rule

   Agree how loads are triggered: a fixed weekly schedule, a minimum quantity on hand at the plant, or release orders from your planners. Each part number gets a unit of measure and pallet configuration.

2. 02
   Receive and record by part and lot

   We unload containers, count against the packing list, barcode each pallet and record part numbers and lot or heat numbers in our WMS so you can trace any unit back to its container.

3. 03
   Store to the right status

   Duty-paid inputs go to general storage. Inputs you want to keep duty-deferred go into our bonded warehouse under a warehouse entry filed by your customs broker.

4. 04
   Build and ship loads

   We pick, palletize or rework loads to fit your plant's receiving rules and ship by FTL, LTL or local truck. Inventory tracking and shipment status updates show what is on hand and what is in transit.

5. 05
   Report and reorder

   Inventory reports by part and lot let your planners see days of supply near the port and time the next purchase order or the next pre-pull.

Raw material drayage for heavy containers

Raw material drayage is the port pickup and local haul of containers carrying dense inputs such as metal stock, castings, stone, glass or plastic resin. These loads are limited by weight long before they are limited by space, so chassis choice and weight planning matter more than cube.

Federal rules at 23 CFR 658.17 cap gross vehicle weight on the Interstate system at 80,000 pounds, with 20,000 pounds on a single axle and 34,000 pounds on a tandem. A triaxle chassis spreads a heavy container's weight over three axles, which helps keep heavier loads legal on axle weights. We run triaxle chassis for heavier containers and ask for accurate gross weight at booking so the right chassis is on the first appointment.

For heavy freight, transloading into 53-foot trailers rarely saves trucks because the trailer weighs out at about the same payload as the container. Our transloading vs. cross-docking guide explains when the move pays off.

Bonded storage and duty timing for manufacturers

A CBP bonded warehouse lets you store imported inputs without paying duty until you withdraw them for consumption. Under 19 U.S.C. 1557, merchandise may stay in a bonded warehouse for up to five years from the date of importation. For a manufacturer holding a long-lead component in bulk, that turns a single large duty payment into smaller payments that follow actual usage.

Goods can also be withdrawn from bond for export without paying US duty, which matters if some inputs are shipped to plants in Mexico or Canada. We provide the bonded storage and the bonded drayage to get cargo there; your customs broker files the warehouse entry and withdrawals. Read more about how a bonded warehouse works or see our bonded warehousing in Long Beach.

Manufacturers that export finished goods may also qualify for duty drawback. Under 19 CFR 190.21, manufacturing drawback can refund up to 99 percent of the duties, taxes and fees paid on imported inputs used in exported products. Drawback claims are filed through a licensed customs broker or drawback specialist; our role is keeping clean receiving and lot records that support the paper trail.

Common mistakes in manufacturing logistics

• Under-declared weight. A container booked as standard weight that needs a triaxle chassis can miss its appointment. Give gross weight from the packing list, including crates and dunnage.
• Non-compliant wood packaging. USDA APHIS requires wood pallets and crates to be treated and carry the ISPM 15 mark. Noncompliant packaging can be refused entry, so confirm the mark with suppliers of crated machinery or parts.
• One part number per pallet assumption. Mixed pallets from suppliers slow receiving. Ask suppliers to label cartons with part and lot numbers, or plan for sorting at our warehouse.
• Planning to the ETA instead of the last free day. Vessels and holds slip. Plan around the last free day and let us pre-pull containers when the plant cannot receive in time.
• Splitting providers. Using one company for drayage and another for storage adds a move and a handoff. Keeping drayage, storage and delivery together shortens the chain.

Frequently asked questions