OXXO Mexico’s Distribution Network
One of the most successful stories of expansion, reach, and volume for retail chains has been developing in Mexico: OXXO is the country’s convenience stores leader in Mexico and Solistica has been key in the exponential growth of this company over the past 15 years, contributing the necessary logistics support.
With a disruptive model, OXXO’s stores have been set up throughout the country in both urban and rural settings, highways, airports, and a myriad of points of sale that have made it Mexico’s retail leader. In addition, its model is expanding to other Latin American countries.
Solistica has participated in OXXO’s exponential growth throughout Mexico. The relationship began in 2004, when we designed a distribution network to meet the demands of the store chain’s logistics. At the time, OXXO had 2,000 points of sale.
To meet the challenge of OXXO’s planned growth, we immediately designed innovative projects offering increased efficiency for a distribution network capable of meeting the supply demands arising from the company’s nonstop store openings all over the country.
Another major mission in this strategic challenge was to keep the number of SKUs under control, efficiently manage reverse logistics from points of sale, which currently stand at 18,000 convenience stores.
By implementing a dedicated fleet (100% of the fleet serving OXXO); innovating with multiple temperature vehicles; designing loading and unloading gadgets (the electric hand truck, for example); and by incorporating the reliable delivery concept (which involves high quality levels for deliveries, even when our clients’ employees are not present), we have been able to reach a Fill Rate of 97% at some Distribution Centers.
In addition, we lowered waste well below the industry’s standard and, thanks to highly efficient reverse logistics, we lowered costs considerably for our client’s supply chain.
In this case, Solistica’s work with OXXO broke the traditional paradigms for distribution operations; gathering a series of logistics solutions that have helped us grow to offer what our clients need in a customized and comprehensive manner, regardless the industries they belong to.
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