KOB Plastics, a leading manufacturer and distributor of plastic materials, has experienced the challenges of shipping products to Latin America from their headquarters in Knoxville, Tennessee. The nearest ports to Knoxville are located in Savannah, Georgia and Charleston, South Carolina, and for shipments to Mexico, the only option is to send trucks to Laredo, Texas. However, these routes often lead to delays and extended transit times, causing headaches for both KOB Plastics and their customers.
To address this issue, KOB Plastics decided to explore alternative shipping routes that could streamline their logistics and improve delivery times. They discovered that by using an agent in Miami, they could send containers from Knoxville to the Port of Miami, which cost an additional $400 compared to sending the products to Savannah, but would result in faster transit times.
The company decided to test this new approach with one of their clients in Costa Rica. To their surprise, the container traveled from Miami to Costa Rica in just 3 days and reached the client’s warehouses in San José only 7 days after being loaded in Knoxville. The success of this trial led KOB Plastics to try a similar approach with a client in Arica, Chile, and the transit time was reduced by one week compared to the usual 4 to 5 weeks.
OB Plastics recognized that by paying a small premium to use a different shipping route, they could save their clients up to two weeks in transit time and simplify their purchasing and logistics processes. The company now recommends shipping from Miami or New Orleans for clients who require fast delivery.
The benefits of this new approach extend beyond faster delivery times. By reducing transit times, KOB Plastics can improve customer satisfaction, reduce the risk of product damage or loss during shipping, and streamline its logistics and inventory management processes. Additionally, this approach can help KOB Plastics expand its customer base and increase its competitiveness in the Latin American market.
In conclusion, KOB Plastics has found that traditional shipping routes from Knoxville to Latin America can be challenging and lead to extended transit times. By using an agent in Miami and paying a small premium, the company has been able to reduce transit times and improve customer satisfaction significantly. This new approach has the potential to streamline logistics processes and expand KOB Plastics’ customer base in Latin America.