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A key provider of steel products to Rheem Industries, company that produces water heaters and air conditioning equipment. Given the importance of this service the decision to establish a distribution center in Nuevo Laredo was reached with the intention to shorten release schedules and response times.

TerniumClA bidding process was launched by TERNIUM at the beginning of the year looking to find the best partner to establish this critical service. Several logistics providers took part on this process where ONILOG was selected as the optimum solution, starting operations on June 15th,, 2012.

ONILOG proved it’s worth immediately when, after signing the contract on June 1st, TERNIUM was faced with a requirement from it’s client where shipments needed to be processed from the Nuevo Laredo center starting on June 15th. Working to meet our clients needs, ONILOG was able to establish a distribution center that could process 10,000 tons of steel a month with up to 20 daily shipments in only 15 days.

ONILOG is committed to be an ally for Ternium, maintaining a high level of performance on a daily basis. As such we have implemented a structure to receive volumes of more than 2,000 tons per week, resulting in approximately 50 in-bound shipments per week.

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As part of this project we also provide JIT deliveries to Rheem, managing volumes of 1,200 to 1,500 tons and a maximum capacity of 75 outbound shipments per week.

Value added for Ternium

As an efficient partner, ONILOG established a distribution center, renovating the warehouse with specific client requirements as: four indoor docks, humidity control system, specialty racks, CCTV system and a weighing scale (80 tons capacity).

Before renovation

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After renovation

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Also acquired equipment with specific characteristics required for the operation: flat-bed trailers with a carrying capacity of 35 tons.; GPS tracking systems; 33, 16 and 11 tons forklifts; weighing scale (80 tons).

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From June 2012 to date, ONILOG has delivered more than 70, 463 tons. of steel in approximately 2, 535 outbound shipments.

From the beginning of the operation, ONILOG was able to fulfill expectations:

  • Starting operations with 15 days advanced notice.
  • Arrange special training in customer site (Ternium facility).
  • Adopting the Ternium warehouse managing system.
  • Managing Ternium quality system at the same time as ours.
  • Implementing daily controls.
  • Logistic logs (Unloading, loading, transportation schedules).
  • GPS tracking system.
  • CCTV remote access.
  • IN/OUT facility surveillance 24/7.
  • Weighing scale log.
  • Implementing special material handling requirements.

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