Semi Knocked Down
is the acronym for Semi Knocked Down. It is an export strategy very commonly used by vehicle manufacturers. The procedure is also currently used by manufacturers for the production of home appliances, and in telephony.
As its name indicates, consists of exporting partially assembled products abroad. The final assembly of the products is carried out in the importing country where the sale will take place. Kits sent abroad may then be added to by components produced locally to achieve stronger integration.
Manufacturers have two interests in :
This industrial practice is usually encouraged by preferential agreements from developing countries looking to develop a particular industry. This was the case with Algeria and the automotive sector.
is a variant of (Complete Knock Down). In this other industrial strategy, it is all the parts required to assemble the product that are shipped to be assembled in the country of marketing. Therefore, the integration of parts is weaker in than in , with a smaller number of parts to be assembled.
As with , companies using benefit from a preferential fiscal and/or regime.
However, to take advantage of this, manufacturers must meet several conditions:
Import/export quotas for and kits are often applied in this respect.
In practice, the (the same applies to ) export strategy requires good management of inbound logistics and transport operations:
In the transport of semi-assembled parts, the role of logisticians and carriers is essential to massify flows of goods to third countries. The challenge is to obtain the best filling rates for containers by constantly innovating to achieve the shortest possible packaging and loading times.
Packaging management is a strategic part of export. This concerns guaranteeing the protection of parts during transport while limiting the weight and space of wood, cardboard, foam, plastic, etc. When is a recurring practice relating to large volumes, there is also the question of packaging waste. This problem can be overcome by using reusable packaging to reduce the carbon footprint of operations.
The end-to-end traceability of flows in the is also essential to avoid disruptions, and to guarantee the continuity of production to achieve a better customer experience. In this respect, the use of RFID chips is real asset for tracking packages.