A leading North American plumbing and building products manufacturer produces multiple brands of high performing bath and kitchen fixtures. The product needs to be transported from its facilities and distribution centers located throughout Mexico to an extensive network of wholesalers and specialty big-box retailers in the U.S.
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, like many others, struggled to obtain the capacity it needed across the border and needed a reliable, consistent solution to ship final product to it’s distribution channel in the U.S.
Schneider has more than 20-years of experience in Mexico, providing the expertise and know-how to successfully manage cross-border freight. Schneider began its relationship with this manufacturer in 2012 by providing 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 non-value-added services, such as border transfers and transloading.
In 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
Schneider Intermodal continues to meet the manufacturer’s service requirements, exceeding customer pickup and delivery expectations. Special certifications, open communication and meaningful technology provide concrete time and cost efficiencies, superior security practices and reliable, consistent capacity for the manufacturer.
Published January 2019
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