Joint Planning and Continual Analysis Provide Reliable, Consistent Cross-Border Capacity

Background: Manufacturer Requires In-Demand Product to Flow Through The Pipeline

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.

Situation: Volatile Markets Drain Outbound Efficiencies

Map of MexicoToday, 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.

 

Solution: Schneider's Cross-Border Service Secures Northbound Shipment of Goods

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

C-TPAT Certified Award
  • Schneider provides local drayage in Mexico from the manufacturer’s three distribution centers to the rail ramps through the use of a dedicated fleet of Customs-Trade Partnership AgainstTerrorism (C-TPAT)–certified Mexican carriers
  • Schneider’s carrier base in Mexico is 100 percent C-TPAT certified, enabling high security levels along the transportation chain
  • Schneider’s simplified load configuration process with stackable, 53-foot orange intermodal containers provides reliable, door-to-door, truck-like service

Joint Planning

  • Schneider’s bilingual operations in Mexico are strategically placed to be easily accessible for the customer’s daily needs
  • Schneider’s operations team in Mexico is in contact with the Mexican carriers from the customer’s facilities to the intermodal ramp
  • Schneider communicates with Mexico Operations and the customer service team twice daily to forecast loads moving to the two intermodal ramps
  • The customer provides a weekly forecast, allowing Schneider to provide container availability confirmations within the following 24 hours – which results in better capacity planning and proper container placement

Ongoing Analysis

Geofencing
  • Schneider implemented a geofencing tracking system to monitor freight location and provide real-time delivery information, which helps prevent cargo theft on each load
  • Schneider audits contracted carriers every six months with facility visits on C-TPAT criteria
  • Security specialists monitor C-TPAT data daily and meet every two months to review

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.

Results: Reliable Safeguarded Service and a Flourishing Relationship

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