Distribution Center Ready Delivery (DCRD)

Under our DCRD model, SHGL will consolidate products received from multiple suppliers at our warehouses in Shenzhen or Yantian. DC level orders are consolidated to FCL containing multiple SKUs and multiple suppliers then sent FCL to the US DC, avoiding time and expense of deconsolidation prior to arrival at the US Distribution Center.

Advantages of DCRD Model:

• Build DC ready units in China reducing USA DC labor cost
• Reduces deconsolidation and transportation cost
• Quick turn on seasonal/promotional items
• Decreased product damage based on less handling/transfer points
• Increased order accuracy based on limited touch points and mis-slotting
• Reduction in USA DC inventory
• Reduce carbon footprint