When a California-based producer of electronic hand tools wanted to streamline and accelerate the product supply chain from its manufacturing plant in Mexico to retail outlets throughout the United States, it turned to UPS Trade Direct Cross Border.

Client challenge

      This company manufactures most of its products in Mexico. Previously, the company coordinated the movement of finished products from Mexico to the United States, including less-than-truckload (LTL) shipping to the border, processing through Customs, and LTL shipping to a distribution center in California. There, the products were labeled, picked and packed and then distributed to thousands of major home improvement centers and hardware stores throughout the United States.

      In order to more efficiently respond to orders and meet stringent on-time delivery requirements, the company wanted to by-pass the California facility and ship directly from Mexico to its U.S. customers.  After interviewing several third-party logistics providers, the company chose the UPS Trade Direct Cross Border solution.

      The company found that UPS Supply Chain Solutions offered a comprehensive, seamless trans-border solution, handling everything from the pick-up at the manufacturing facility to final delivery at the customer’s door.

UPS solution

      When the company receives an EDI (electronic data interchange) order from a customer in the United States, it now picks, packs and labels the order at its Mexico facility. UPS Supply Chain Solutions then arranges for the pick-up freight from the facility, transportation to the Mexico border, processing through Customs and final delivery directly to customers via UPS package system or LTL network.

      The streamlined Trade Direct Cross Border solution bypasses the need for a U.S. distribution center, generating significant savings and accelerating the average order fulfillment time by one day.

      Customer satisfaction is a number one priority for the company’s logistics manager. When an order comes in with a specified lead time it’s up to him to meet it. UPS offers everything from ground transportation to overnight service when and where needed.

      UPS gives the company and its customers’ complete visibility, from the time the orders leave the manufacturing facility until they reach their final destinations. Adding to the convenience, Trade Direct provides a single point of contact and a consolidated bill for the entire transaction.

Building on success

      Following the success of the UPS Trade Direct Cross Border solution in Mexico, the company is now looking at ways that UPS can enhance its growing international business in Canada, Europe and Asia.

      UPS Supply Chain Solutions gave this company the flexibility to quickly respond to market needs, not just within the United States, but globally.

Trade direct suite

      Trade Direct Cross Border is one of the unique UPS solutions that help customers manage costs and increase speed to market. Unlike traditional freight forwarding, which moves shipments to a distribution center or warehouse, Trade Direct is a factory-direct, single-source solution that enables faster movement of international shipments to multiple retail locations or end customers. Simply put, Trade Direct consolidates freight and individual packages for customs clearance, transports them (via ground, ocean or air) and then deconsolidates them for final delivery via the UPS package delivery network or LTL.

      Because UPS serves more than 200 countries and territories worldwide, we stay current with government regulations, understand customs and security requirements, and speak the language. With expertise earned as both a logistics leader and the world’s largest package delivery company, UPS is uniquely capable to be a reliable, multi-modal, end-to-end shipping source.

About UPS

      UPS is a global company with one of the most recognized and admired brands in the world. Founded in 1907 as a foot and bicycle messenger company in the United States, UPS has grown into a US$33.5 billion corporation by clearly focusing on the goal of synchronizing commerce around the globe.

      Commerce is the transfer of goods, information and funds. UPS has positioned itself across the entire supply chain, offering customers the expertise needed to facilitate any type of business activity.

      The company originally grew by concentrating on package delivery in the United States, emphasizing service and teamwork, superior management and the application of new technologies for efficiency. By the 1980’s, after extending service throughout the United States, UPS built its airline and began a global expansion that brought service to more than 200 countries and territories. In the 1990’s, the company set its goal of becoming the world’s preeminent enabler of commerce, building “supply chain” capabilities that extended its reach into finance; logistics; customs brokerage; freight movement; electronic commerce, and venture capital. Today, these enabling capabilities represent the fastest growing part of the company.

      As growth accelerated, UPS changed in late 1999 from one of the world’s largest private corporations – owned by its employees – to a public company with its stock traded on the New York Stock Exchange. The publicly traded stock provides the company the currency it needs to pursue its vision.

      UPS now is one of the world’s largest employers, with 357,000 men and women working around the world. And those employees are widely recognized for their commitment to the communities in which they live and work and the emphasis they place on giving back to society.