Resort Development Case Study
Challenge
A privately held real estate development and management company
had recently chosen a site in Anguilla as a good location for an
investment resort. The developer worked with their architect
to create a site plan and their interior designer to create a spec
book containing all required furniture, fixtures, and
equipment. The purchasing agent then worked on behalf of the
developer to select numerous vendors across the world to supply the
necessary materials.
However, the development group had no international shipping
relationships, no means of clearing customs and more importantly,
no way of managing all their vendors' products to the resort
location. Particularly when one considers the scale of this
$500 million dollar development, allowing the purchasing agent or
even the vendors themselves to arrange for transportation and
consolidation would have resulted in an inefficient and costly
process.
Action
Suddath Logistics Group / Centra Worldwide stepped in and worked
closely with the developers to strategically manage all of their
vendors. Our team took control of the process at the vendor
location and managed, tracked and negotiated freight to a
consolidation point in Miami. As the vendor's product arrived
in Miami, it was inspected for damage, scanned into the
consolidation point and put into inventory. Once the product was
needed at the site, it was scanned outbound and marked as "in
transit" in the tracking system, showing the quantity and value.
Upon its arrival in Anguilla, the product was again scanned and
shown as installed.
Result
Suddath's streamlined process allowed the development group to
have the correct products when they needed them, where they needed
them. Ultimately, they were able to reduce their operating
costs while creating a level of transparency in the system that
assured a smooth construction process. While the underlying
cost savings that come with the increased efficiency of the process
are difficult to quantify, Suddath has pinpointed that we were able
to save the developer in excess of $5 million on transportation
costs alone and an additional $500,000 on installation costs.
What makes Suddath's solution unique is that our goal is
always to ensure the best interest of the Developer/Owner rather
than rely on the connections of vendors or purchasing agents who
might not have the most cost efficient solutions. While our
team is engaged in supervising the day-to-day details of the
project, we also consistently have our eyes on the bigger
picture.