c o n t e n t 01. uruguay as a distribution center. 02
TRANSCRIPT
C O N T E N T 01. UrUGUAY AS A DISTRIBUTION CENTER.
02. DIRECT SHIPMENTS VS DISTRIBUTION CENTER IN UY.
03. Costa Oriental A as distribution center.
04. Possibilities for a Japanese company to work in UY.
05. Stages of the service, cost structure.
06. conclusions.
Uruguay AS A REGIONAL DISTRIBUTION
CENTER
. 01.
U R U G U A Y ’ S R E L I A B I L I T Y R A N K I N G I N L A T I N A M E R I C A
D E M O C R A C Y I N D E X -T h e E c o n o m i s t
A M E R I C A ’ S I N T E R N A T I O N A L T R A N S P A R E N C Y - O N G
P R O S P E R I T Y I N D E X - L e g a t u m
C O M P L I A N C E W I T H T H E L A W I N D E X –T r a n s p a r e n c y I n t e r n a t i o n a l
I T D E V E L O P M E N T I N D E X -L a t i n B u s i n e s s C h r o n i c l e
A V E R A G E I N T E R N E T S P E E D -L a t i n B u s i n e s s C h r o n i c l e
Q U A L I T Y O F L I F E -M e r c e r
U R U G U A Y G E O G R A P H I C A L L O C A T I O N
LIMA, PeruDaily Air Freight and High Frequency of Sea Freight and land freight 8 days
LA PAZ, BoliviaDaily Air Freight and Land Freight Options 96 hrs.
ASUNCION, ParaguayLand: 72 hrs.Air: Daily
SANTIAGO, ChileLand: 72 hrs.Air: Daily
BUENOS AIRES, ArgentinaLand: 24 hrs.Air: Daily
SAN PABLO, BrazilLand: 96 hrs.Air: Daily
URUGUAY Containers’ reception from different origins, keeping a cdr in costa oriental, Uruguay
BRAZIL
ARGENTINA
PERU
BOLIVIA
CHILEPARAGUAY
MONTEVIDEO
I N F R A S T R U C T U R E Modern airport and efficient port.
F R E E T R A D E Z O N E S I N U R U G U A Y
✔ 12 Operative Free Trade Zones.
✔ 15.000 direct jobs.
✔ 1600 companies , 56% trade and logistics.
✔ Stability of the regime guaranteed by law.
✔ Total import duties and tax exemptions.
A growing business model
Regional offices
Value added services
Regional distribution center (rdc)
Buffer stock for one specific country
Cross-Docking operation
M A I N R E G I M E S I N T H E R E G I O N
BRAZIL
PANAMA
URUGUAY
ARGENTINA
Shipping request
Request reception and analysis
Order released to Operations team
PickingPacking list Issued
Invoice
Shipment Coordination
Outbound scheduling
Loading and outbound
report issued
Reception of automatic outbound
report
Uruguay• Free Trade Zones.
• Law adapted for a RDC.
• Strategical position to serve South Cone.
• Total exemption of customs duties + fiscal benefits.
• All value addedactivities allowed.
• Stability of the lawand the country, free repatriation of fundsand dividends.
• Price in dollars withpredictableincreases.
Panamá• Free Trade Zones.
• Law Adapted for a RDC.
• Strategical position to serve Central America, Caribbean.
• Exemption fromcustoms duties and fiscal benefits.
• All value addedactivities allowed.
• Free repatriation of funds.
• Price in dollars.
Brasil• Alfandegados/ Eadis.
• Law adapted for local Operations.
• Serve DomesticMarket
• Exemption fromcustoms duties.
• Some value addedactivities.
• Controlled by Central Bank
• Price in local currency fluctuations.
Argentina
• Zona Franca La Plata.
• Law adapted local Operations.
• Serve DomesticMarket.
• Exemption fromcustoms duties.
• Basic activities.
• Controlled by Central Bank.
• Price in dollars withuncertainty .
URUGUAY PANAMA BRAZIL ARGENTINA
DIRECT SHIPMENTS VS a DISTRIBUTION
CENTER IN URUGUAY
02.
Direct Shipments Centralization with a RDC
Direct Shipments vs. Centralization
Paraguay ArgentinaUruguayChile Brazil
FACTORY
60 - 90 days
WAREHOUSE IN EACH COUNTRY WITH NATIONALIZED
INVENTORY
FACTORY
PARAGUAY
72 hours
ARGENTINA
24 hours
URUGUAY
12 hours
CHILE
72 hours
BRAZIL
96 hours
DistributionCenter
M A I N B E N E F I T S O P E R A T I N G T H R O U G H A F R E E T R A D E Z O N E A T C O S T A O R I E N T A L
INVENTORY COMMERCIAL OPPORTUNITIES
Better response
Reduction of lead times –
product availability
Reduce risks for
uncertain business
MORE FLEXIBILITY
POSSIBILITY TO DO
Postponement
Reduction of products
with low rotation or
expired, Balanced
inventory
SOLUTION FOR
UNEXPECTED EVENTS
SAVINGS FINANCIAL BENEFITSREDUCTION OF THE
REGION’s GENERAL
INVENTORY
SAVINGS IN
INTERNATIONAL
FREIGHT
VARIABLE COSTS
Financial savings due to
differed tax payment
ability to react to
market or foreign
exchange fluctuations
COSTAORIENTAL as
RDC
03.
C O S T A O R I E N T A L I N N U M B E R S
37 YEARS OF EXPERIENCE
IMPORTANT QUALITY CERTIFICATIONS
1
GROUP EMPLOYEES
40.000WHAREHOUSES
m2
Social responsibility
MORE THAN 3000 CHILDREN
More than 350 graduates
350First Company established in zonamerica
W H A R E H O U S E I N F R A S T R U C T U R E
40.000 in ZONAMERICA
25.000 picking positions and
10.000 drive in racks
7500Drive in robot shuttle
positions
PRIMARY AND SECONDARY
HANDLING ROOM
Walk in racks
2000 m2mezzanini
5.200m24500
m2
PHARMAZONE AND COSMETICS
WMS WITH INFRARED
COMMUNICATION
COLD STORAGE
AREAS
m2
B U S I N E S S U N I T S
CONSUMER GOODS
Cosmetics
ELECTRONICS
Spare parts
RAW MATERIALS PHARMACEUTICAL PRODUCTS
agrochemicals Industrial components
Costa oriental located in zonamerica
L O C A T I O N O F C O S T A O R I E N T A L I N M O N T E V I D E O
Port
airport
NationalRoutes 8 or 5
to Brazil
NationalRoutes 1 or 3 to Argentina
VALUE ADDED activities at costa
Oriental
Possibilities for a Japanese company to start working
at Uruguay.
04.
L E G A L F R A M E W O R KD I F F E R E N T W A Y S O F O P E R A T I N G
IT IS NOT MANDATORY TO HAVE A COMPANY IN URUGUAY TO WORK THROUGH A FTZ. Possibility TO START OPERATING IMMEDIATELY THROUGH A FOREIGN COMPANY.
INDIRECT USERBuying a Uruguayan FTZ society or
registering a company’s subsidiary in Uruguay as a FTZ society.
FOREIGN COMPANY URUGUAYAN COMPANY
Indirect user (#1) Foreign company(#2) Uruguayan company(#3)
NEED OF A NEW SOCIETY IN URUGUAY?
TYPE OF CONTRACTS
Set-up time frame
Needs to have its own personnel?
YES. A free trade Zone Society.This can be done: a) Acquiring an existing stock corporation (immediate)b) Establishing a new one from cero( 3 months)c) Registering a subsidiary in Uruguay as a FTZ stock company (4 months).
Indirect User agreement: Between THE COMPANY + CO + FTZ Admin. (requires State approval).Logistics Service Agreement: Private between CO + THE COMPANY.
1 to 5 MONTHS to get the agreements approval, depending on option a), b) or c).
It can, but its not compulsory: 25% can be foreign and are exempted from social taxes in Uruguay.
NO NO
IMMEDIATE IMMEDIATE
Logistics Service Agreement. Private between CO + THE COMPANY.
Cannot hire its own personnel in Uruguay.
Has its own personnel in Uruguay, without benefits for foreigners.
Logistics Service Agreement. Private between CO + THE COMPANY.
exonerations
Operating possibilities
Documentary possibilities
FINANCIAL POSSIBILITIES
Exonerated from custom tariffs while goods remain in the FTZ.
National taxes exonerated (assets, income, etc.) Applicable to existing
taxes or to be created.
Any type of operation, includingValue Added activities which may
modify the product’s nature.
Invoicing done directly from the FTZ according to the requirements
of each country.
Possibility to have a bank account in Uruguay, taking
advantage of Uruguay’s free Exchange and free repatriation
of dividends policy.
INDIRECT USER (#1) FOREIGN COMPANY (#2) URUGUAYAN COMPANY(#3)
Exonerated from custom tariffs while goods remain in the FTZ.
Exonerated from Assets and Income Tax in Uruguay as long as the 95% of total
annual goods is sold to foreign countries.
Any type of operation unless those that modify the product’s
nature.
Invoicing done by the foreign Company, owner of the goods
stored at the FTZ.
Subjected to the Company’s country of origin regulations.
Exonerated from custom tariffs while goods remain in
the FTZ. No fiscal exoneration. Pays
taxes as a Uruguayan national Company.
Goods operations and logistic value added
activities.
Invoicing done directly in Uruguay.
Possibility to have a bank account in Uruguay, taking
advantage of Uruguay’s free Exchange and free
repatriation of dividends policy.
Stages of the service, cost
structure
05.
Stages of Our Service - all variable costs
Inbound
Warehousing
Outbound
Ocean or Air arrivalCustoms Transit and Freight Port to FTZ
Inventory Control Unloading, Control and Inventory Availability
Storage and InsuranceValue Added – Labeling,
Bundling, etc
Order Placement Picking and Conditioning of Order Loading
Customs Transit to Border or Pick Up by
Distributor in FTZ
Fixinboundcost per
container
Per real cubic meter
Fixoutboundcost per
exit
Per unit
CONCLUSIONS
Competitive advantages of working through Costa oriental
Multi-client Company – multinational companies with long term relations.
Important certifications supporting our processes.
First class facilities and own it team.
Competitive and variable cost structure.
REDUCTION OF THE REGION’s GENERAL INVENTORY- flexible stock by using a RDC.
ability to react to market or foreign exchange fluctuations.
Reduction of lead times – product availability and possibility of customization.
Financial savings due to differed tax payment.
Reduce risks for uncertain business.
S O M E C U S T O M E R S T H A T T R U S T I N O U R C O M P A N Y
CONSUMER PRODUCTS ELECTRONICS
RAW MATERIALS AND AGROCHEMICALS
INDUSTRIAL COMPONENTS
C U S T O M E R S T H A T T R U S T I N O U R C O M P A N Y
PHARMA AND COSMETICS
