Paper Title
The Practical Operating Scheme of Virtual distribution Center-Case of parts distribution between Taiwan and Indonesia in small trading company

Purpose of this paper: Taiwan government announced her national policy called Southward Policy to diversify the national business risk from China market. Taiwan government encourages SMEs to develop their products and services for south east countries market especially for India, Indonesia, Philippines, and Vietnam. The author deeply did the research on the practical operating structure between south east countries and Taiwan. For more practical effectiveness and low cost to execute the policy. Virtual distribution would play a very useful role. The objective of this paper is to structure a workable virtual distribution center and work flow. Design/methodology/approach: Qualitative and empirical research is the method of this paper. Case study method includes in-depth research into A company. Data and information was gathered from A companyand theoretical papers and practical working reports. The experienced and workable flow and structure are really examined and tested. Findings: A practical process and working structure was worked out and tested two times. Value: A workable structure and practical working flow is concluded and completed for the reference of small and medium trading company. Practical implications (if applicable): This study has significant implications for small and medium enterprises called SMEs and for organizations which have to operate supply chain management. SMEs are the main business sectors in Taiwan and they need efficient and low cost international business due to the shortage of human power along with the development of good performance of supply chain management. The efficient and low cost operating process of international business is considered as the key to the success of small and medium trading companies for the policy of Southward policy. Key Words - Virtual distribution, Supply Chain Management