A leading North American plumbing and building products manufacturer produces multiple brands of high-performing bath and kitchen fixtures. The manufacturer has nationwide distribution through an extensive network of wholesalers and specialty and big-box retailers, both brick and mortar and online. Its production facilities and distribution centers are located throughout Mexico.
Today, the outbound demand is significantly higher than inbound Mexico demand. This imbalance decreases the reliability of capacity traveling from Mexico to the U.S. Appreciation of the U.S. dollar due to the U.S. economy’s recovery negatively affected the exchange rate for the peso, expanding the gap between imports and exports. Even when the Mexican peso is supported by a strong national economy, volatility in the markets has led companies to purchase less merchandise from the U.S. and develop local suppliers to reduce import costs. The manufacturer required a reliable, consistent solution to ship final product to its distribution markets in the U.S.
Schneider has a 20-year history in Mexico, providing the expertise and know-how to successfully manage cross-border freight. Schneider began its relationship with this manufacturer in 2012 by performing northbound intermodal service. Shippers who use Schneider’s cross-border intermodal door-to-door transit – which delivers truck-like service with competitive pricing and delivery times – experience decreased risk of delays and increased security. Schneider quickly became the primary intermodal provider thanks to increased supply chain efficiencies and reduced spending on nonvalue-added services, such as border transfers and transloading.
In late summer 2013, Schneider proposed a more secure cooperative plan to offer strategic intermodal pricing and cross-border capacity planning and service. The agreement included implementation of service, joint planning and ongoing analysis:
Implementation of Service
Additionally, Schneider Intermodal provides service to the southern U.S. and Mexico, ensuring enough containers are Mexico to provide much-needed inbound U.S. capacity.
Schneider continues to exceed the customer pickup and delivery expectations. Schneider delivers nonstop, truck-like cross-border intermodal service and maintains the manufacturer's high level of service. Special certifications, open communication and meaningful technology provide concrete time and cost efficiencies, leading to a strong relationship between the two parties and the manufacturer’s customs broker.
Published April 2017
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