Consolidation of Local and Re-export Operations in the Panama Pacifico Distribution Center

Industry:

Pharmaceuticals and Medical Devices

Description:

One of the leading global manufacturers in the pharmaceutical industry, with a presence in various areas of Panama and shipments from plants in different global locations, sought to consolidate its operations in a single area and with a single supplier to distribute its products to Central America, the Caribbean, and the local market of Panama.

Problem:

The client had inventories with various logistics operators and in different areas such as the Colón Free Zone, Tocumen Airport, and in Panama City. Additionally, some high-value product lines or those with special requirements were supplied directly from the plant to all countries in the region. For the client, having various contracts and multiple suppliers and relationships between multiple offices with multiple plants made their administrative management more complex and costly. Additionally, the client could not take advantage of the synergies of transportation, facilities and customer service, even though it had related businesses. The costs of keeping all sites audited and controlled for the GMP management of pharmaceutical products and medical devices made the operations of said company in Panama more expensive. These factors limited the potential of said company to continue developing its business lines, developing regional solutions and adding clients to supply from Panama.

Solution:

The client decided to do an exhaustive analysis to find the best logistics solution for their business, a true strategic partner. They hired a team of consultants, who evaluated the logistical conditions of each area, the capacity and service of the logistics operators, as well as launched a tender to measure the best cost. Likewise, they performed a time and cost analysis of the entire supply chain, comparing Panama with other possible consolidation points and the direct shipping option.

The best solution was won by J. Cain Panamá Pacífico, managing to consolidate operations in multiple areas at the best price and with the best quality of service. The unique advantages that allowed the project to be carried out were:

Integration of local and foreign business thanks to the ease in Panama
Pacific to manage nationalized and non-nationalized inventories on the same site.
Proximity to Panama City, allowing for fast local distribution logistics, with same-day deliveries.
Advantages in ground service to Central America with better times and costs compared to other areas.
Availability of world-class infrastructure made to measure in record time.
More competitive DMC costs.

Results:

The result of the project has been extremely successful. The client has managed to restructure its administration, simplify its structure, and at the same time grow the portfolio of products and markets that it supplies from Panama. The Panama Pacifico Distribution center has become a vital part of your business, where together we develop value-added solutions to meet the needs of the markets and continue advancing the competitive advantage for your business.