Multi-country distribution center of 7 different business units
Industry:
Technology
Description:
Our client, a manufacturer and marketer of technological products with more than 50 years in the industry, was seeking to streamline its supply chain to reach its customers in Central America, the Caribbean and South America faster, but at the same time sought to implement an inventory postponement strategy. to reduce your financial cost.
Problem:
The client maintained multiple warehouses throughout the region, from Miami to Argentina, where they managed regionalized inventories, creating a slow supply chain that accumulated inventory and when countries had situations that impacted sales, they could not mobilize this inventory quickly, generating loss of sales, risks. devaluation and financial costs of inventories. At the same time, the client sought to become a market leader and improve its cash flow.
Solution:
We used the Panama HUB model to sell the unique characteristics that the country presents to improve transit times, at the same time we were able to demonstrate that the levels and quality of service were comparable to any Global level service provider, offering a consistent service. , agile and flexible.
Customized services were created not only for the client, but also for the client’s clients, to facilitate the use of multiple incoterms and allow flexibility that they did not previously have.
A partnership was created with a company dedicated to design and manufacturing to create an ecosystem where not only logistical services are provided, but also added value is made such as repairs, kitting and equipment customization. This motivated component suppliers to move into the hub and form an integrated and efficient value chain cluster linked to the supply chain.
Finally, custom tools were created to provide traceability as close to real time as possible and to combine data from different platforms that the client managed (ERP, control towers, billing systems), which allows faster decision making.
Results:
The client's market presence is notable by arriving faster than the competition. Transit times were reduced due to the speed allowed by the free zone and advance planning, the postponement strategy allows reducing waste or loss when a country has problems since the inventory can be redirected and, more importantly, create the ecosystem. Together with clients, it allowed a more efficient return on cash because it was invoiced much faster.
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