Determining Factors for Bonded Warehouse Implementation : Case study exploring the key resources in bonded warehouse implementation

Abstract: Background: Globalization has created new opportunities for firms to import and export goods across the world, international trade has gained significant importance to many. Although global trade between countries has many positive aspects, it has also demanded the right type of warehousing to store the goods as cost-efficiently as possible. Warehousing is the second largest cost within a company’s logistics areas after transportation. One way of lowering logistics costs is to implement a bonded warehouse. A bonded warehouse is a storage location where companies can store imported goods where the payment of duty costs to be postponed as long as needed, which provides companies with more liquidity and yield many cost-saving benefits. However, bonded warehouse operations and implementation are more complex than that of a non-bonded warehouse because special requirements for monitoring and auditing must be followed and executed correctly. It is, therefore, vital to choose a suitable strategy and proper implementation in order not to waste valuable resources. Manufacturers and retailers could as a result benefit from a resource and implementation framework to mitigate the risk of an inadequate implementation process. Purpose: The purpose of this study is to explore the requirements for implementing a bonded warehouse from a resource-based perspective. The aim is to derive a set of resources that are necessary for the implementation of a bonded warehouse. Further, the study will examine both tangible and intangible resources. Lastly, a framework that will illustrate the steps and requirements to implement a bonded warehouse is created. Method: This study takes on a qualitative research method, guided by a constructionist perspective this exploratory study uses a multiple case study approach to obtain thorough knowledge on the topic. Through semi-structured interviews with several companies, the topic of bonded warehouse implementation is explored. Moreover, the analysis was consistent with a grounded analysis approach where themes could emerge and provide answers to our research questions. Conclusion: The results illustrate the ten key resources required for bonded warehouse implementation: 1) Bonded Warehouse Project Plan 2) Bonded Warehouse Administration 3) Bonded Warehouse Reporting 4) Bonded Warehouse Layout Specifications 5) Bonded Warehouse Project Team 6) Bonded Warehouse Process Knowledge 7) Customs Knowledge 8) Customs IT-system.