Client Case Study: Slashing 30% Logistics Costs for a European E-Commerce Giant

A Berlin-based vaping retailer cut logistics expenses from €4.2M to €2.9M annually through these interventions:

1. Tariff Code Reclassification: Leveraged HS code 8543.70 (vaping devices) instead of 2404.11 (tobacco products), reducing EU import duties from 14.7% to 6.5%. Customs brokers filed Binding Tariff Information (BTI) rulings in 7 member states.
2. Multi-Country Consolidation Hubs:
   • Shifted from 11 scattered 3PLs to a Rotterdam FTZ hub, trimming handling fees by 28%.
   • Implemented AI-powered demand forecasting to maintain 8-day inventory turns vs. industry average 14 days.
3. Green Corridor Advantage: Utilized China-EU railway routes for 50% of shipments, cutting transit times to 18 days (vs. 35 days by sea) at 40% lower cost than air freight. Carbon credits offset 22% of transport emissions.
4. DDP (Delivered Duty Paid) Contracts: Negotiated with suppliers to absorb China export VAT rebates (13%), lowering landed costs by €0.87/unit.

Result: 99.2% on-time delivery rate and 35% reduction in customs clearance delays.