In This Issue
Supply and Demand
  • Wood pricing has increased by more than 50 percent in Mexico. Traditional local source supply has diminished. IOS has responded by increasing capacity to bring in wood directly from mills and treat it at point-of-use to meet customs regulations.
  • IOS supports customers with JIT services through its Laborgistics® process in Mexico, allowing customers to eliminate receiving facilities in El Paso. Reducing layers in the supply chain cuts cost.
Update - Tech and Facilities
  • New 96" CAD table MORE >
  • Data Services Division adds new plant MORE >
  • 100,000-sq.-ft. facility MORE >
  • Accredited by Mexican agency MORE >
  • Five-color, $1.4 million printing press MORE >
  • Distribution center expansion includes 450 trailers MORE >
Global Report - International News

Mexico > China > Mexico
Companies that relocated operations from Mexico to China are in boomerang mode — the time-to-market is becoming more crucial in today’s global business environment and Mexico is a solution. Freight logistics and lead times to get products from Asia are becoming increasingly difficult because of congestion.

Airlines
IOS relations with airlines have gone global, with a customer service system that originated in Paris and is now used in the U.S.

IOS Germany has completed the acquisition of a production site, which IOS already owned in part. IOS Germany is now producing in three facilities: Heusenstamm (Frankfurt), Waltershausen and Bad Langensalza, the new site.

IOS Slovakia signed its first contract directly with a Slovak company.

IOS France extends ISO 9001:2000 certification to all sites. According to Sebastien Aquilo, Quality Manager, this international recognition demonstrates the company’s ability to deliver services consistent with customer expectations of quality and timely delivery. The resulting strong commercial advantage will allow IOS to further develop to meet and exceed customer expectations.

Trend Watch
RFID Goes With Pallets
From an industrial standpoint, there is a trend toward introducing RFID this year for high-volume vendors who sell to large retailers. This facilitates the inbound and outbound control of U.S. shipments. IOS is evaluating how and when to introduce RFID technology into its process for Mexico operations. Options include tracking the entire pallet that contains products, or individual products on pallets, depending on what data is desired.

Speed-to-Market and Accuracy too
With an increased need for forms processing — medical/dental, insurance, financial/banking — IOS is ramping up services to expedite smooth, accurate processing for its customers. Accurate classifications are paramount so claims can be properly processed the first time and payments can be applied correctly.

Check 21
With the introduction of Check 21, the banking industry is gradually changing the way it does business. IOS facilitates corrections for those checks missing, coded incorrectly, unreadable or that have an incorrect name and address. Though few errors occur using Check 21, the high volume of large multinational banks equates to a flow of needed corrections.

Contract Packaging Association Gets New Name, Fresh Start
The Contract Packaging Association is looking to increase its visibility and effectiveness. One initiative will be a targeted magazine, Contract Packaging, from the publishers of Packaging World.

Contract packaging is “hot.” Survey results (Packaging World, April 2004) show that more than four in 10 companies will increase their use of contract packaging services during the next two years. Various estimates put the industry’s annual growth at 15 percent to 40 percent.

Yet contract packaging remains a misunderstood corner of the industry among firms that might enhance their bottom line by buying or providing these services. The publishers of PW, seeing the need to bridge this information gap, will introduce Contract Packaging magazine in 2005. CP magazine will serve as the official publication of the Contract Packaging Association, kicking off with a monthly e-newsletter in early 2005. The magazine will publish a print version twice in 2005, with the April and September issues of PW. MORE >

Inside IOS
IOS prepared for new U.S. customs regulation
A new customs regulation is going into effect regarding wood packaging materials transported from Mexico to the United States. The ISPM 15 regulation is designed to protect against exchange of insects between countries. Insects are often found in wood packaging materials such as wood pallets, crating blocks and skids. These items will soon have to be specially heat-treated and certified to pass border inspection.

IOS anticipated that this regulation would soon be adopted in the U.S. for Mexican imports and invested in a wood treatment unit, growing its 50-person operation to 120 employees in one of its several Juárez plants in Mexico. The plant expanded from 20,000 sq. ft. to 75,000 sq. ft. to accommodate the demand for wood pallets from IOS customers. The monthly output of treated wood pallets is 100,000 with the company’s 2005 expansion projected at 500,000 per month by year’s end. IOS is featured in the March 2005 issue of Twin Plant News for this new innovation.

IOS announces new division names
IOS announces division and specialty changes in February. The three divisions include:
  • Data Services
  • Manufacturing & Assembly
  • Packaging & Logistics
Specializations in packaging include corrugated boxes, pallets, Vendor Managed Inventory (VMI) and Just-in-Time (JIT) Services. IOS can accommodate packaging requirements for all sizes and types of products for customers with boxes, wood pallets, crates, corner protectors and other specially designed packaging materials.

See iosnet.com for details on divisions and specialties.

Division News
Packaging & Logistics Division News
Automotive supplier Visteon has chosen IOS as its primary packaging logistics supplier for 2005-2007 for Chihuahua operations. The alliance between Visteon (former parent company: Ford) and IOS demonstrates the potential of IOS to expand into other parts of Mexico for all clients.

Data Services Division News
New Contract
FedEx International, both EU and NA, is doing its air manifest throughout North and South America — and some from Europe — and is working with IOS. More details in the next issue!

Rebates
Rebate business is booming — promotional fulfillment, rebates, and increased capabilities make IOS a premier processor.

Patent Pending
A program for a new name and address-keying platform is being patented by IOS. Used for subscriptions, surveys, donor lists, mailing lists, parking tickets, tax returns and more, this program makes the process faster and more accurate.

White Mail
IOS sorts, screens and forwards customer white mail to the right department or processing facility. Incoming mailroom processing and outgoing mail are both easily outsourced to the right provider. General, unstructured mail, such as consumer correspondence (questions, complaints, etc.) can be handled off site and the reply process expedited.
 

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