More Investment Needed in Logistics

Distribution and logistics are booming areas in businesses, who need to invest more in process automation and improving delivery times.

Thursday, March 15, 2012

The international consulting firm Miebach, from Germany, has conducted for the first time a regional study on distribution and logistics among Central American companies, with the participation of 238 companies, 80 of them in Costa Rica (39% of the total).

The main findings for Costa Rica were that companies are expanding sales, have well qualified staff, but there are lags in terms of infrastructure, automating internal processes and product delivery times.

39% of the Costa Rican firms surveyed belong to the consumer goods sector, 22% are distributors, and the others are in logistics and retail services.

"Locally, one fifth said they had annual increases in the order of 5% to 10% per year and another percentage just over 10%. None experienced negative growth", reported Elfinancierocr.com.

Regarding logistics costs, in the case of Costa Rica they are divided as follows: 29% for stock, 22% for transportation, 20% for staff payments, and another portion for infrastructure.

Costa Rica has slower delivery times than other countries. The average in Central America is less than 48 hours for 60% of companies, in Costa Rica nearly 60% do so in a period of between 48 and 72 hours.

More on this topic

Costs Which Can be Avoided

February 2011

Taking time to eliminate hidden costs in business may be the best short-term investment.

In the article by Omar Becerril at Altonivel.com.mx, he highlights some of the types of expenses in which businesses often incur. Even highly efficient processes may be covering up unnecessary costs that can be avoided.

Not Enough Logistics Parks in Costa Rica

March 2014

It has been estimated that there are 80 million square meters of space in unmet demand for use as warehouses, industrial buildings and Office-warehouses by logistics companies.

In response to this lack of supply identified by Colliers International new projects have appeared west of the capital, near the logistics centers of companies which distribute their products nationwide.

Costa Rica, Pfizer Regional Operations Center

March 2009

Beginning in January 2010, Pfizer will focus all its operations for the Caribbean and Central America in Costa Rica.

This was announced by company executives for Latin America and the Caribbean during a meeting with President Oscar Arias.

The representatives of the pharmaceutical company also expressed satisfaction with the signing of an agreement with the Costa Rican Ministry of Health to develop a joint campaign against smoking.

Poor public services put brakes on investment, say Costa Rican business leaders

May 2008

Business leaders in Costa Rica say that big delays in public works are putting a brake on their investment plans.

"Because of the problems with public transport, we've had to lay our own transport for workers. That adds to costs but it's the only way to make sure they get to work on time," said Christian Rodríguez, vice-president for operations of Western Union in Costa Rica.

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