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A Strategic Alliance with NetLogistik Increases Presence in Mexico

Glassboro, NJ – January 2010 – Demountable Concepts, Inc. is capitalizing on a strategic alliance with NetLogistik of Mexico City and over twenty years experience as North America’s leading supplier of demountable truck body systems to increase utilization of their delivery and distribution systems in Mexico.

NetLogistik consults with large companies operating in Mexico to maximize the efficiency of logistics programs. Their role in the alliance includes educating potential clients about the benefits of Demountable Concepts’ systems and managing implementation and training after the sale.

Companies presently utilizing Demountable Systems in Mexico as a result of the alliance between Demountable Concepts, Inc. and NetLogistik include:

Comercial Mexicana – The largest supermarket chain in the country, comparable to Walmart in the United States, implemented the system to increase the efficiency of deliveries to their stores. Before the Demountable Truck Body System drivers could only make delivery trips from the warehouse to two retail stores per day. Now, drivers can service as many as six stores per day. Downtime associated with reloading trucks was eliminated because workers now load demountable bodies at the warehouse while other loaded bodies are with the trucks making deliveries. Comercial stores now also receive product more often which eliminates out-of-stock issues and enhances the customer’s retail experience because a wider selection of inventory is readily available.

Huevo San Juan – This large-scale egg producer implemented Demountable’s Warehouse on Wheels System utilizing tandem-trailers to shuttle four loaded demountable bodies to outlying areas where straight-trucks mount each body and make timely store deliveries. With the system a single tractor-trailer can move the same amount of product to a regional market as four straight-trucks. The result is lower delivery costs, including a significant reduction in fuel costs, and a more consistent delivery schedule to ensure freshness of this perishable product at the retailer.

Dico Group – Mexico’s largest furniture retailer relies on the Warehouse on Wheels System to service regional markets without the necessity of investment in expensive cross-dock or regional warehousing facilities. Inventory now goes directly from the warehouse to its destination in the same cargo body without being touched which decreases costly damage to furniture and related customer service and product return issues.

The Demountable Truck Body System provides straight-truck delivery fleets with the ability to quickly and easily swap cargo bodies for an increase in the number of deliveries possible per day while simultaneously decreasing labor expenditures and streamlining loading and delivery processes. Along with van bodies, companies can also add versatility to their fleet through utilization of different types of bodies, including curtain-side, flat-bed and refrigerated, without purchasing additional trucks.

With the Warehouse on Wheels Portable Distribution System pre-loaded demountable bodies are line-hauled to a drop-yard at a regional market on a semi-trailer and demounted. Next, locally-domiciled straight-trucks mount the bodies and make deliveries while empty bodies from the previous round of deliveries make the return trip to the warehouse on the semi-trailer. This system is less expensive than regional warehousing and provides the benefit of demountable truck bodies for local deliveries at the regional market. It also facilitates rapid deployment into emerging markets and adds an element of flexibility to distribution programs because drop-yard locations are quicker and easier to implement and/or relocate than regional warehouses.

Rustin Cassway, President of Demountable Concepts, Inc., comments on the strategic alliance in Mexico by saying, “Although some unique challenges may arise through language and cultural differences, companies in Mexico are very interested in streamlining logistics and reducing operational costs, just like in the United States. We are very excited about the business this market presents and look forward to developing new applications of our proven systems in Mexico and the rest of North America.”

Demountable Concepts, Inc., established in 1989, is North America’s premier manufacturer and supplier of Demountable Straight-Truck Delivery Systems and the Warehouse on Wheels Portable Distribution Center. In addition to Mexico their clients in Canada and the United States include mass retailers, furniture retailers, building supply, lumber and millwork manufacturers, beverage distributors, snack food companies, party rental suppliers, nurseries and other industries.

The system is available through most truck leasing companies and dealerships and the company has a North American network of that installs the system onto new and existing trucks. Demountable Concepts also supplies truck body builders with the parts necessary to make bodies interchangeable.