Industry News

What Is SKD? Advantages of LED SKD.

Author 2023-11-11 10:17:58

1. What is SKD?

SKD (Semi Knock Down) semi-bulk parts

In international trade, especially in international automobile trade, automobile companies in the country that exports complete vehicles dismantle the finished products and export them as semi-finished products or parts. The importing manufacturers then assemble the finished vehicles by themselves in the host country. and make sales.

2. Why do you need to operate SKD packaging?

For exporters using this method, in addition to saving freight and taking advantage of the importing country's low labor force, they can also enjoy a lower import tariff than that of complete vehicle imports. For the importing country, it can promote the development of its own industry and promote the development of its own industry. Increase employment opportunities and occupy the domestic market. Among them, SKD (semi-bulk parts) refers to the major parts of the automobile (such as engine, chassis, etc.) that are basically packaged and exported separately in the form of semi-finished products, and the importing country assembles them into complete vehicles on the spot.

This method is used by all vehicle manufacturers such as cars introduced in my country at the initial stage. For example, in the early stages of production of the Shanghai Santana sedan, only tires and retractors were domestically produced. Most of the assemblies and parts were imported in SKD form and assembled into complete vehicles at Shanghai Volkswagen.

KD (Knocked Down) method is used in numerous electrical consumer products, including color TVs, refrigerators, VCDs, DVDs, including mobile phones, computers, etc. However, after the initial KD, these domestic products quickly formed independent capabilities and showed localized price advantages.

3. Related packaging methods

The so-called "Knocked Down Assembly" is referred to as KD (Knocked Down) according to international common parlance. Generally speaking, KD has three forms: CKD, SKD, and DKD.

CKD (Complete Knocked Down) is a complete knock-down assembly.

SKD (Semi-Knocked Down) is a semi-knocked down assembly, and part of the assembly is ready-made.

DKD (Direct Knocked Down) CKD (Completely Knock Down) complete bulk parts.

4. How to operate SKD packaging?

For example: when the air conditioner is exported in SKD mode, the air conditioner chassis, compressor, condenser, etc. will be assembled on the machine to become a semi-finished air conditioner. Other parts such as piping and valve bodies are packaged separately and shipped to customers together. This form of export can generally save labor costs for customers. Customers can assemble SKD parts locally (general labor costs are lower than in China).

When exported in the form of CKD parts, all air-conditioning parts will be packed in separate boxes and shipped to customers together. This form of export is equivalent to customers purchasing parts and components in China (taking advantage of the local collaborative procurement capabilities and low-cost material advantages of Chinese complete machine manufacturers), which will save customers considerable costs.

The existing export forms of SKD and CKD parts are generally more common in countries with a lower level of development than China, such as Vietnam, Thailand, and poor and backward countries in Africa.

5. SKD packaging specific process

1-Statistical product information

2-Determine the size of the large packaging box first based on the larger product size and container size;

3- Then design the packaging of small products according to the remaining space

4- Organize and archive the packaging designs, and check the placement of the containers;

5-Mass production packaging based on archived documents.

When quoting, you quote components separately. Other operations are the same as regular exports, except that usually the quotes are for finished products. This one allows you to quote components. In some countries, labor is cheap, and it is cheaper to assemble imported components yourself than to import finished products!

6. Why do customers buy skd pieces?

Many customers purchase SKD street lights and SKD floodlights because they offer several advantages over fully assembled lighting products. Here are some reasons why customers may prefer SKD lights:

Lower Cost: Since SKD lamps are partially assembled, they cost less to manufacture than fully assembled lamps, which can make them more affordable for customers.

Easier Shipping: SKD lights ship in a compact form, which makes shipping more efficient and cost-effective. This is especially beneficial for customers who need to transport large quantities of lamps over long distances.

Customizability: With SKD lights, customers have more flexibility to customize products to their specific needs. They can select the components that suit their requirements and assemble the product in a way that best meets their needs.

Technical knowledge: Customers with technical knowledge and experience assembling lighting products may prefer SKD lamps because they have more control over the final product.

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