How a Mexico City Auto Supplier Cut Cross-Border Shipment Time in Half

Comau Group is a assembly facility of FIAT from Italy in Mexico City, which has 250 employees to assembling and testing robots used on automotive assembly lines throughout Central, South and North America. Their daily basis is to do the cross-border trade.

They have a coordinator, Gustavo Ramos, to import and export the parts from Detroit, Michigan. This facility receives parts from manufacturers approximately 400 LTL shipments a year, and each shipment costs 6 to 7days.

The shipments are cost time when they arrival the south-bound at the U.S. border, a third- party carrier is going to take care of their parts after completing Mexican brokerage protocol at the border, then enter the Mexico, finally delivery into Mexico City. In this transaction, Ramos wants a faster shipment to cut the lead-time for some of its shipments but avoid the cost of airfreight.

Ups as his transportation service provider, has explored the idea to reduce the time cost from a week to 3 days only based on a traditional LTL ground service and air freight service. “Most of the time savings come from the carrier’s ability to use team drivers and eliminate many of the processes and hand-offs that take place at the U.S.-Mexico border.” Now, the freight is shipped directly in-bound to Mexico City after an air freight from Detroit to Laredo, and cleared at the airport rather than complete the Mexican brokerage process at the border.

 

Reference: http://mhlnews.com/global-supply-chain/how-mexico-city-auto-supplier-cut-cross-border-shipment-time-half

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