CASE STUDY. LOGISTIC CHALLENGES FOR SSANGYONG MOTOR COLOMBIA (Article published in Spanish)

Abstract

The appreciation process of the Colombian Peso and the economic growth of Colombian economy from years 2005 to 2006 generated a huge increase in cars’ sales. In order to take advantage of this market opportunity, SsangYong Motor Colombia, a multinational firm specialized in dealing of Diesel – vehicles, had to face many logistic challenges. By the second semester of 2007, an increase in the maritime freights for merchandise coming from Asia caused the raise of the transportation costs of cars by vessels. Added to this, the supply of vessels did not lift up and the few spaces that were available have been already sold. The Buenaventura’s port situation was not helping either, with an over demand of its installations, the unpacking and loading costs were elevated, and merchandise designated to duty-free zones were first attended. As a response, SsangYong developed three possible alternatives. This case studies each of these possibilities from the perspective of logistic for international business; it is based in a real situation so it allows the interpretation of the fluctuating global market and its relations with Colombia.