Due to the lingering logistics complexities resulting from the Covid-19 pandemic and the global trend among the global pharmaceutical players to reduce the capillarity present in their historic distribution models, LACC has been seeing an increased demand for distribution to smaller markets in the region.
Reaching countries like Paraguay, Bolivia and Chile, among others, poses several challenges for global players due to connectivity constraints and reduced volumes. Meeting minimum purchase order requirements may lead to inefficiencies, maintaining local inventory increases working capital. Furthermore, security concerns arise due to the lack of adequate infrastructure at these destinations.
LACC is currently collaborating with a select group of pharmaceutical shippers who optimize purchase orders for multiple markets, centralizing the long-hauls transportation to LACC. Inventory is stored at LACC, and minor customizations are performed when necessary, with cargo shipped to destinations on an as-needed basis.
This approach has enabled companies to reduce working capital, optimize long-haul logistics by consolidating multiple destinations in single shipments, and allocate stock more efficiently by keeping inventory bonded and nearshore to the destination markets.
LACC is proactively planning for future infrastructure and capabilities, as the concept of regional distribution appears to be a global trend in emerging markets worldwide.
Latin America Cargo City is part of Corporación America, one of the largest airport operator in the world with a network of over 50 airports across 3 continents.
For more information, please contact us at info@latinamericacargocity.com
