For an Auto Supplier: Return to Sender

Highlights:

  • ICAT loses a client to cut costs – but not for long
  • When the bigger company failed, ICAT was ready to take the lead…
  • Special requirements for shipping steel into Asian markets…
  • “I anticipate that we will be working together for many years to come..”

Challenge:

For many years, ICAT Logistics Detroit handled all of the shipping for one automotive supplier’s tooling and prototypes anywhere in the world, acting as a single source of logistics support. “With a single call,” a director for the supplier wrote, “the ICAT team effectively coordinated local cartage, crating, Customs documentation, air/ocean transit asneeded, destination Customs clearance and delivery between U.S. and Canadian locations and tooling vendors in Asia.”

In a short-sighted effort to cut costs, the supplier turned to a big global brand name that promised it could handle shipping cheaper, especially to Asia, where it had a large presence. ICAT Logistics Detroit lost its client — but not for long. The bigboys simply didn’t know how to handle the special requirements for shipping steel into the Asian markets.

“Barely two months into the process, the global powerhouse decided that it could not manage DDP (Delivered Duty Paid) shipments into Asia and turned back the business,” the supplier’s director of logistics wrote to ICAT. “ICAT stood ready and able to pick up and succeed where the bigger company failed.”

Big Picture:

ICAT worked with the supplier to create a team focused on Logistics and Customs. They created a shipping contract that allowed guaranteed pricing that didn’t fluctuate with every shipment.

“ICAT fits the bill for handling our complex Asian relationships and freight,” the director wrote. “I anticipate that we will be working together for many years to come.”

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