Omar Salgado Intenational Manufacturing

Team Members:

Miriam Martínez González
René Arturo Villalobos Ávila
Eduardo Salazar Brenes

Supervisor: Omar Salgado

Xooxs is a chemical company that produces at its plant in Coatzacoalcos ancillary products for oil extraction and production of fabric colorants.

In April he was transferred to a new plant business in Brazil, for strategic issues of product cost is cheaper to produce in plants in Mexico that the plants of Brazil.

This product used as raw material critical a product called Dinitrochlorobenzene (DNBC); it is a product that cannot be transported in drums or IBC, it is compulsory to be transported in isocontainers equipped for sea movement. The vendors selected because of the selling price of this product are located in China and currently there is a contract with a company that lets Xooxs six isocontainers to be rolled in a circuit. While an isocontenedor is with the supplier in filling process, the others are in transit or on the ground in use.

Being now a new established business in Mexico, Xooxs discarded using the Gulf of Mexico ports to be unaffordable because of the time it would take to go across the Panama Channel, therefore the common harbors are those of the Pacific Ocean; for practical purposes be considered Manzanillo port which is the second most important port in Mexico.

For several months Manzanillo was considered the best option, but the team came to the conclusion that the port of Salina Cruz was closer to Xooxs plant in Coatzacoalcos.

The team analyzed information about distances, travel time and customs procedures. The analysis showed that there are pre-established ship routes and those routes do not consider small harbours, however there is a connection between China and Mexico from Shanghai.

The time saving is interesting because it is reduced the circuit from 88 days to 74 days. This allows us to save on isocontainers in circuit and in transit inventory.

We detected some deviations with service providers, customs and forwarders and freight companies that need to be work out, Salinas Cruz does not have all the services infrastructure, so this will be a problem to be solved before implementation.

Conclusions:

The graphical representation of a case allows us to see, more easily the different options with the naked eye are not the most productive decisions where the cost of transport is not a problem are taken as simple and without a logistics analysis. Further study will always give us options that do not contemplate or we will agree on the decisions we make.

Map: Logistics routes, ports, customs, distances & costs.

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