Many UK businesses have seen changes with the effects of Brexit, and the drinks industry is no exception. Difficulties with logistics, increased shipping costs and complicated administration processes combined with Covid lockdown struggles means most businesses are left facing additional costs. In some cases, this means companies are forced to look into relocating or opening new EU warehouses and distribution operations. But there is another option for drinks wholesale businesses.
Bonded warehousing
Another solution for the drinks industry is to use bonded warehousing. A bonded warehouse means import duties are only payable once a product is sold, so you don’t have to pay the extra duty to have products sitting in a warehouse.
Bonded warehousing has strict customs regulations but can offer huge benefits with many advantages to help drinks manufacturers and retailers with managing cashflow.
How will warehouse management systems software help my business?
If you’re considering a bonded warehouse facility, it’s important that you also consider your options for keeping track of inventory. Our bonded warehouse software helps you to do all that and more, minimising warehouse management costs and time-consuming paperwork as well as ensuring you can easily and accurately access the detailed customs information required by HMRC.
Is bonded warehouse management software right for a start-up business?
Gaina works with various drinks businesses including wholesalers and FMCG companies. When it comes to start-ups, planning for growth is essential, and not identifying software for business needs early could result in slow growth, increased cost and missed opportunities.
We were recently approached by a new winery who wanted to grow their business and build a brand reputation while they wait for their grapes to grow. Since this is a lengthy process, they decided their best option was to keep wholesale stock of wine in a bonded warehouse to help them manage cash flow efficiently by lowering purchases costs.
Start-up businesses in this position might know about how bonded goods will open up cash flow that can be used elsewhere in the business but may not always be aware of the necessary customs reporting and the time this can take.
How can Gaina software help?
With our bonded warehouse software, Gaina can help your drinks business to:
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- Ensure accurate reporting compliance with our automated reporting feature.
- Locate and track products coming in and out of your warehouse.
- Open up cash flow by lowering your purchasing cost for goods that will exist in bond.
- Create an additional revenue channel by hosting multiple tenants in your bonded warehouse.
Like many of our clients, Gaina Software is a member of the Bonded Warehouse Keepers Association, meaning that we are able to give expert advice on not only developments pertaining to HMRC and EMCS, but we can offer you a valuable insight into warehousing forecasts and trends.