Panama Hub Helps Global Brands To Penetrate Latin American Markets

Author:Patton, Moreno & Asvat
Profession:Patton, Moreno & Asvat

For global brands distributing into Latin America, establishing a regional distribution centre (RDC) in Panama has advantages to help them meet demand without incurring heavy costs. Damco's dedicated 3PL operation at their new Panama Hub enables their clients to scale space, labour and transportation according to needs. This means that they can respond to fluctuations in demand, having the ability to utilize more space and resources when needed. Two well-known global brands that are now successfully penetrating into Latin American markets by basing their RDC operation at Damco's Panama Hub - eliminating barriers to expansion while seamlessly supporting growth through a network of resources.

Damco supports a global technology company's supply chain into Latin America and Miami With approximately 64% of this company's overall net revenue coming from products sold outside the USA, having visibility and control of the end-to-end supply chain when distributing to emerging markets like Latin America is a major factor in achieving on-target performance. When the multinational needed to change its Latin America hub and distribution structure, Damco proved that investment in the new Panama Hub would cut transit times and costs, supporting their supply chain into Latin America and Miami.

Previously, the majority of their products destined for Central or South America had to move into Mexico or through Miami before being distributed. Through the use of the Panama Hub, their end-to-end transit times has substantially improved, and at the same time reducing their carbon emissions and costs.

The company directly benefits from Panama's low/zero taxes in its free trade zones and economic development areas while being able to reduce costly inventory by closing in-country warehouses.

The Panama Hub is also helping to meet the targets set in their sustainability program, which aims to cut carbon emissions in their supply chain by two million metric tons of CO2 by 2020. So far, Damco's Panama Hub team have been able to reduce emissions by up to 40% while still managing to bring order lead-times and shipping costs to Latin America down!

Appliance manufacturer establishes RDC in Panama to expand their portfolio of clients Damco's Panama Hub has also enabled a multinational appliance manufacturer to eliminate the need to invest in warehouse space, technology, transportation and staff to execute the logistics process. They now have a logistical...

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