Case Study: A multinational automotive manufacturer

A multinational automotive manufacturer decides to establish a cost reduction program in the inbound freight part costs, mainly targeting the transport costs.

The first reaction is to make a comparison between the most important logistics companies, contacting big, and small companies, but always asking to reduce the actual costs.

The big companies offers very good air and seafreight rates, good credit line, personal attention and service, based in their many offices and personnel around the world, however they don’t explain accurately the quotation and modus operandi.

Mardin offers what we do best, competitive rates and personal service with continuous visits to the customer’s facilities since the moment of the sale, clarifying all the doubts and concepts of the quoation until it is completely clear before making the first transport. As well, together with the customer, we analyze the best cost-benefit options in the market.

At the end of the study, the customer decides to try the big company as they feel more “supported” and of course the costs seems to be lower.

Disadvantages of our competitors.

During the first operations, everything runs smooth until the first freight invoice is submitted. There are some non-quoted charges so the problems begin and make the customer start wasting time in clarifications, find the sales man, contact the “customer’s service” department, ask the operative personnel for the information and at the end get a no for an answer as “it is not our charge but the port-authority-emergency-surcharge-war risk, etc.!”

Instead of making what they do best, the hired personnel of the company will have to take care of every shipment they make with the big company, analyzing themselves every expense, without any confidence in their forwarder as they might charge another “strange” thing.

If everything goes ok, the service and relationship continues until production department claims traffic area that they are lacking some materials necessary to reach the programmed goals.

Immediately they realized, after reviewing their shipping lists, that one container was supposed to be loaded but it has not arrived, so they contact the big forwarder to ask whereabouts of their material, reason of delay and actual status of the shipment.

Normally the manager first has to deal with the answering machine, push some buttons, listen the 9th symphony until he finally is able to talk with his “executive”.

After some research, the executive explains that it was impossible to load the container due to a delay in the railroads at origin. Sorry, he cannot make charges to the forwarder because they are never liable for these delays.

Then the customers has to explain to his own customer all these, ask him for more time to get the materials with another company, or maybe send the material by airfreight (if it is in stock). If he is lucky they will get more time but they will have to pay for a nice airfreight and won’t have time of course to discuss with the forwarder.

In the meantime the container arrives, the airfreight arrives and the increase in the inventory costs, customs clearance, inland freights also appears, so the customer has to change their releases to avoid more inventory.

At the end of the day, the problem is solved, but what about the money and time wasted in finding this solution? What about if the big forwarder sent a warning advice before all the inconveniences presented?

Unfortunately the customers really don’t have time to develop suppliers and the most of the times they keep working with the same forwarder until the next delay and shut down occurs.

We believe that it is not the same to develop a supplier than defend from a supplier!

A difference between the freight invoice and the quoted rates is a lack of ethics and discipline from the forwarder. This should be enough to get rid of this kind of companies no matter the size of the number of employees they have, or the years they have in the market. (Some of them have pirate backgrounds, believe it or not). And no mention that repetitive differences ends up in a high amount of money and the success of the projects is in high risk.

Transportation has always lots of risks that can affect the transit times, however is obligation and responsibility of us forwarders, to keep customers well informed in real time whenever a delay happens, so the customer has more time to prepare an alternative solution,....this is not only present charges.

We have found that lots of companies are in this situation and it is our labor to explain why is not always convenient to work with a big forwarding company, only because they have more resources. Not always these resources are for the customer’s benefit.

When there is an honest, direct, open communication between supplier and customer, these problems are easily solved as a team.

Our advantages.

What it appears to be our main disadvantage, say the size of our company, becomes our best weapon to benefit our customers as we are able to keep a personal, flexible, effective service.

Being a small company does not stop us in giving a good line of credit, competitive rates, and offer good plans to our customers.

We are a well balanced company and our success has never relied on our size.

With our web site, we will achieve a closer position to our clients so they can access to their shipments before they are loaded, during the transit and immediately before they arrive to destination. Besides they will know the cost before the freight invoice is even printed!

We are sure that the simplicity and honesty is the best tool for an efficient communication.

Contact us

If you want to receive more information fill this form:

Mardin Logistics México, S.A. de C.V.
Tel: (55)5697-0090, (55)5670-5365 / informes@mardinlogistics.com
Soja 164-2 Col. Granjas Esmeralda, Mexico D.F. 09810