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Itgo Case Analysis Paper

Decent Essays

The International Trade Gateway Organization (ITGO) is a private non-profit group that is trying to grow the Buffalo Niagara region to the point that it’s a globally recognized logistics center. The group was formed out of the Bi-National/Logistics group of the WNY Regional Economic Development Council. The mission of the group is to build upon the capacity of exciting organizations and leverage the advantages of the region (ITGO)The board of directors and steering committee is comprised of local company leadership that is involved with international logistics in some way. Jim Manno, president of the organization who works at Sonwil Distribution a local 3PL in the Buffalo area as V.P. of Sales and Marketing. I interviewed Jim to get a better …show more content…

The first warehousing strategy is to be located near plants, with the demand going off of manufactures. The other type of warehousing strategies is being located near market. This is the last mile drive to the customers where companies can increase coverage of their product. Jim Manno said with the strategies are dependent on conditions such as drivers and equipment issues. (Jim Manno) It is also the cost of doing business that needs to be looked at when determining which to choose. These costs could be fuel, labor costs, union strikes that happen at ports in California. (teamsters) These 3PL distribution centers in the area such has Sonwil look to mitigate the risks of acquisitions and mergers that happen when larger companies buy out a smaller company. For example when WhiteWave foods merged with Dannon, warehouses would’ve lost a customer if the buying company would not continue to use the warehouse taking the product out and moving it to their existing locations. …show more content…

These shipments would come off the ships and be transported by rail and truck to Buffalo distribution centers where they will be able to be transported to various areas due to Buffalo’s location. There are a total of 328 inland ports in the United States, Buffalo is the second largest with 1.7 million transaction with the largest amound of shipping brokers with 40 being licensed. The largest being Detriot with 2.1 million transactions due to the automotive industry(Buffalo Business First) When international freight comes via ocean companies like to keep the product on the water as long as possible to cut down on freight costs so this will incise shippers to go through the Panama Canal rather than shipping to Seattle. (Buffalo Busineses first) Experts have looked at Buffalo as the next “logistics powerhouse” such as Winniepeg and Kansas City. (Buffalo Business first) Winnipeg is many assets that allow them to be a great location such as foreing trade zones that have road rail and air which allow them to transport product of all sizes to different locations being able to expedite air shipments out of James Armstrong Richardson Airport which is a large cargo airport in North America. The way freight is shipped from the Port of New York currently is inefficient.

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