Inside Logistics

Global Focus – July/August 2010


August 24, 2010
by MM&D Staff

Automated food warehouse in Mexico

Mexican food producer Congelados de la Hacienda opened a new freezer warehouse near Leon, Mexico and contracted Westfalia Technologies Inc to design, manufacture and install an automated storage and retrieval system (AS/RS) running on Savanna.NET warehouse management software.

The facility includes nine-level-high racks storing six pallets deep, with a total of 4,524 pallet positions. The warehouse will process fresh produce and then quickly freeze it in a storage area set at -20 degrees Fahrenheit.

The Westfalia logistics equipment in the new building includes the AS/RS, in-feed conveyors leading from the receiving docks to the frozen storage area and out-feed conveyors to the shipping docks.

What do Brazilian shippers outsource?

For companies in Brazil the total landed cost of importing products is a massive challenge. In fact, in a recent study of Brazilian supply chain executives, seven out of 10 respondents said so.

The study, which was conducted by BDP International in Brazil, found Brazilian companies recognize the impact of the total landed costs of imports on their profitability and competitiveness. Many of them are transferring the process—and accountability for import documentation and compliance penalties—to third-party service providers.

In addition, more than 60 percent of the respondents are increasingly outsourcing their transportation-related functions, with nearly half reporting greater outsourcing of global logistics and lead logistics provider management support as well.