MRO procurement and supply chain specialist Entec International has secured new business worth around $13m USD in the first year from one of their major customers. Entec will expand their 3PMRO services to 11 countries across Latin America (Mexico and Brazil), Central America and South America (Colombia, Argentina, Peru, Guatemala, Chile, Dominican Republic, Uruguay, Puerto Rico, Ecuador), building on their success with a global Leader in convenient foods and beverages over the last three years in the APAC (Australia, New Zealand, Thailand) and AMESA (Saudi Arabia, Egypt, Pakistan) regions.
According to Business Development Manager at Entec Richard Zeverona, “Operating in some of the most complex and challenging regions in the world is not without its challenges, but the extension of our relationship with this major FMCG client to a further 20 plants reflects the success of earlier trail-blazing contracts and significantly extends our global footprint.”
Contracts have already been signed with Brazil, Colombia and Argentina, with all other contract signings scheduled for completion by the end of 2020. The new contracts are for the delivery of Entec’s unique ‘3PMRO’ services, which deliver significant productivity savings and optimisation of plant inventory, returning operating cash to the business whilst substantially reducing the CO2 emissions normally required to deliver the MRO components that keep manufacturing plants moving to LATAM Operations.
The first twelve months of the contracts will see Entec providing streamlined off-shore procurement services to multiple sites within a minimum of 10 countries in the LATAM and CASA regions. Once all contracts are live and active, Entec anticipates delivering savings in excess of $1m USD across all operations in 2021.
In subsequent years, Entec will become more closely integrated into their client’s procurement and engineering organisations, involving managing all on-shore procurement, which ultimately will further reduce operational costs and deliver additional savings to the client.
As part of their commitment to the project, Entec will be opening a North American Regional Service Hub in the US to provide regional logistics and enhanced customer service capability.
Mike Robinson, CEO of Entec International, comments, “The development of the LATAM and CASA markets demonstrate the successful partnership of Entec with one of its major customers across its operations worldwide, and is an opportunity for us to demonstrate our capability in delivering effective 3PMRO services to FMCG companies on a global basis, streamlining operations, returning cash to the businesses and reducing C02 emissions.”
He concludes, “We are delighted to have expanded into Latin America. We look forward to replicating our superb results in other regions for our client and to exploring new opportunities for growth in a region which we believe has huge untapped potential for us.”