Solved: Optimizing and Speeding Up Shipments to Mexico
By partnering with Transplace, drywall and joint compound maker USG was able to reduce the delivery time of its product to Mexico from 6 weeks to 48 hours.
As a leading manufacturer of drywall and joint compound, USG serves a large number of customers in Mexico. However, not storing inventory in Mexico created extended production-to-market cycles, resulting in lost market share. The company recognized the opportunity to increase sales by increasing the velocity of its products being shipped to Mexico.
To do this, the company needed to streamline its cross-border and intra-Mexico operations and accelerate the end-to-end supply chain process, which spanned over 6 weeks. As it stood, USG Mexico had to contact their U.S. manufacturing facility for all orders and was limited to shipping only full truckloads.
Having successfully partnered with Transplace for transportation management in the U.S., USG felt they would be the ideal partner to optimize and speed up shipments to Mexico. After analyzing demand along with shipment origins, destinations and transit times, Transplace identified a solution of opening two distribution centers in Mexico—one in Monterrey and the other in Mexico City.
Leveraging Transplace's TMS and cross-border and intra-Mexico expertise, USG was able to efficiently and cost-effectively move product to these new DCs and then on to the end customer. Having Transplace serve as USG's customs broker and leveraging its Customs Portal technology helped USG streamline and more accurately manage the U.S.-Mexico customs process by automating and standardizing the interaction between shippers, importers and customs, improving communication and visibility and reducing mistakes.
By partnering with Transplace, USG was able to reduce the delivery time of the product from 6 weeks to 48 hours—leading to double-digit sales growth in Mexico.