Case Study 1: Individual Family, International Relocation. Paid by medium size Company.
Background
An individual family was planning to relocate from Texas to Panama. The process involved moving their entire household, which required engaging a forwarding company to handle the logistics. This case study explores the challenges and red flags encountered during this international relocation, highlighting the complexities and potential pitfalls of such a move.
Initial Interactions with Forwarding Companies
The family contacted five different forwarding companies to get proposals for moving their household goods. They requested a 40-foot climatized container for door-to-door service. The responses they received revealed significant disparities:
– Price Estimates: Ranged from $5,000 to $30,000.
– Time Estimates: Varied from 3 weeks to 16 weeks, with only one company offering a range of 4-13 weeks.
These discrepancies raised the first red flag regarding the consistency and reliability of the quotes provided by the companies.
Selection of the Forwarding Company
The family chose a company that appeared the most professional and marketed itself as a relocation expert for Fortune 100 companies. The company quoted $26,500 and mentioned a delivery time frame of 4-13 weeks.
Packing and Initial Handling
The next stage of the process introduced the second red flag. When the packers arrived, their handwritten packing list was sloppy, and they loaded the household items onto a moving truck instead of directly into the container. This truck was then sent to an unknown storage location, causing the family to lose control and oversight of their shipment. The handling raised serious concerns about the professionalism and transparency of the process.
Communication and Delays
The family’s experience was further marred by poor communication and numerous delays, which constituted the third red flag. The only point of contact was a young agent in New York who had limited knowledge about transportation logistics. The family was informed that a “destination agent” in Colón, Panama, would handle the final delivery.
Regulatory Hurdles
Upon arrival in Panama, it was discovered that entry required special apostilled documentation, a requirement not previously communicated. This oversight resulted in an additional delay of a week and a half. This regulatory hiccup highlighted the fourth red flag about the company’s lack of preparedness and understanding of the destination country’s requirements.
Final Delivery
After enduring multiple delays and complications, the family received their household goods in a non-climatized, old, and damaged container. The shipment had passed through various storage facilities and intermediaries, including:
1. Forwarder
2. Packers
3. Moving truck
4. Initial storage facility
5. Container provider
6. Truck trailer
7. Second storage facility
8. Port of origin
9. Shipping vessel
10. Destination port
11. Customs
12. Third storage facility
13. Second trailer truck
14. Fourth storage facility
15. Third trailer truck
16. Unpacking crew
The total door-to-door process took nearly 18 weeks, significantly longer than the initially quoted time frame. The total out-of-pocket cost escalated to $43,076, almost double the initial quote.
Conclusion
This case study illustrates the complexities and risks associated with international household relocations, especially for individuals and small companies with infrequent shipping needs. The family’s experience underscores the importance of thorough research, clear communication, and selecting a reliable and experienced forwarding company. The series of red flags identified throughout the process serves as a cautionary tale for others considering similar relocations.
Recommendations
- Comprehensive Research: Before selecting a forwarding company, conduct detailed research and verify the company’s track record, especially for international relocations.
- Detailed Contracts: Ensure that all agreements are documented in detail, including costs, time frames, and responsibilities.
- Regulatory Preparedness: Understand and prepare for all regulatory requirements of the destination country to avoid last-minute complications.
- Continuous Oversight: Maintain control and oversight of the shipment throughout the process to promptly address any issues that arise.
Is your business struggling with supply chain challenges like the ones described in this case study? Let WAPA help you streamline your logistics with corporate agility to improve customer satisfaction. Our expert team specializes in providing information, corporate agility and supply chain optimization for individual relocations and small enterprises, ensuring reliability, efficiency, and peace of mind.
Contact us today to learn more about our services and how we can help your business thrive:
- Email: wapa@wapa.world
- Website: www.wapa.world
Don’t let supply chain issues hold your business back. Reach out to WAPA for a consultation and discover how we can transform your business experience for the better.
Case Study 2: Small Company, Medium Frequency, International Wine Importation
Background
A small company in Central America specializes in importing three brands of wine from Australia. They distribute approximately 400 cases of wine monthly to various customers in the region. This case study explores the supply chain challenges faced by the company, focusing on the lack of control and transparency in the shipment process.
Supply Chain Challenges
The company faces a range of issues that disrupt their supply chain:
- Long Lead Times: The importer tells customers it will take 9 weeks for the shipment to arrive, but delays are frequent.
- Lack of Volume: Due to relatively low volume, the company must share containers with other businesses, complicating logistics.
- Multiple Intermediaries: The supply chain involves about 12 intermediaries, adding to the complexity and increasing the chances of delays. The intermediates are often affected by conflict of interest that add cost to the chain of custody.
- Limited Control: The importer has minimal control over the shipment once it is loaded onto the first truck leaving the vineyard. The remainder of the journey is often a mystery.
To manage customer expectations, the company uses preprinted lists of excuses for delays, reflecting the unpredictable nature of their supply chain.
Impact on Business
The lack of control and frequent delays have several negative impacts:
- Customer Dissatisfaction: Frequent delays lead to customer frustration and potential loss of business.
- Brand Reputation: The company’s reliability and professionalism are called into question.
- Operational Inefficiency: The uncertainty and lack of transparency create operational challenges and inefficiencies.
Conclusion
This case study highlights the difficulties small companies face in managing international supply chains with low volume and multiple intermediaries. The company’s reliance on shared containers and the lack of control over the logistics process result in frequent delays and customer dissatisfaction.
Recommendations
- Increase Volume: Explore options to increase shipment volume to gain more control over the logistics process.
- Dedicated Containers: Whenever possible, use dedicated containers to minimize delays and improve control.
- Logistics Partnerships: Partner with reliable logistics providers that offer end-to-end tracking and better communication.
- Customer Communication: Enhance communication with customers by providing accurate and timely updates on shipment status.
- Supply Chain Transparency: Implement technology solutions to improve visibility and transparency in the supply chain.
Call to Action
Is your business struggling with supply chain challenges like the ones described in this case study? Let WAPA help you streamline your logistics with corporate agility to improve customer satisfaction. Our expert team specializes in providing information, corporate agility and supply chain optimization for individual relocations and small enterprises, ensuring reliability, efficiency, and peace of mind.
Contact us today to learn more about our services and how we can help your business thrive:
- Email: wapa@wapa.world
- Website: www.wapa.world
Don’t let supply chain issues hold your business back. Reach out to WAPA for a consultation and discover how we can transform your business experience for the better.
