In an effort to lower their logistics costs and to offer more competitive pricing along the US-Mexico border, Mattel implemented a distribution model based in the China-Laguna Beach-Mexico route establishing distribution centers in Tijuana, Ciudad Juarez and Nuevo Laredo.
These distribution centers serviced the border market while taking advantage of the lower tax brackets in those areas and avoiding the shipment of these goods to their Estado de Mexico hub, where they would have had to be shipped back.
Under this model, ONILOG worked with Mattel during 2005, 2006, 2007 and 2008 providing distribution services throughout the north-east border region, based in Nuevo Laredo.
The project consisted in having a distribution center that could handle fluctuating volumes, as demand required, where we received shipments, labeled and stored the product, consolidated micro-orders and performed ‘milk-run’ distribution. All these services allowed our customer to increase the efficiency in their logistics costs.
The project met all of Mattel’s expectations and achieved great success, however in 2009 their import model changed to use Lazaro Cardenas as their entry point to Mexico rendering the border distribution centers be financially not feasible.
As mentioned before, the Nuevo Laredo distribution center covered the north-east border region, which included commercial centers in Matamoros, Reynosa, Rio Bravo, Valle Hermoso, Piedras Negras, Acuña and Nuevo Laredo.
The highest volumes were reached during two main seasons, the Día del Niño holiday, from February to April, and Christmas, from July to November. The first part of each season had an emphasis in receiving merchandise, while the shipment was focused in April, for the first season, and October to November, for the second season.
The shipments were consolidated to be delivered in multiple stores so as to maximize the container capacity and minimize the shipping costs. We used multiple units for delivery, ranging from semi trucks to tortons.
We made deliveries to the following retail stores: Coppel, Smart, HEB, Sanborns, Soriana, Gigante, Farmacias Benavides, Chedraui and Del Sol distributed in the cities mentioned before.