The Challenge
One of the largest tire manufactures in the island was looking for options to expand their reach of the global market. This client was locally manufacturing a large number of tyres (SKUs) using the available tyre molds.
However, to expand the market reach, the client needed to expand the number of SKU’s they provide to get larger orders. The SKUs which are not produced in Sri Lanka are produced in the client’s production plants based in far eastern countries
Solution Offered
A hub solution was proposed by Advantis Free Zone for the local tyre manufacturer.
- Import and store SKU’s that are not produced in local manufacturing plants to Advantis Free Zone while continuing the existing local manufacture of tyres.
- Client receives orders for both local and imported SKUs
- Based on the orders, the export containers are stuffed from the local production plant and the same container is sent to the Free Zone to combine the imported tyre SKUs and ship the consolidated container to the buyer.
Business Model
Benefit to Client
- Larger market reach with increased order quantities
- Increased revenue for the client
- Avoiding high investment cost associated in making new molds and infrastructure development to locally manufacture the tyres which were imported with the Free Zone Solution.
- Eliminating duty and taxes for imported tyres as they were consolidated at Free Zone
Our Office
Lot No. 127, KEPZ- Phase – 4, Katunayake 11450, Sri Lanka
+94 77 297 2539
freezone@advantis.world
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