Centrepot

Situation
Centrepot is a third party logistics company that provides services such as warehousing, fulfillment, packaging and local pickup and delivery. Centrepot's customers range from the automotive industry to product retailers to chemical companies. Two Memphians started the company in 1998. They knew they wanted to stay in Memphis, and they were aware of the Foreign Trade Zone program available in Memphis. What they were surprised to find out was that no business was taking advantage of this program. The partners agreed they could offer their customers a great service by taking advantage of the Foreign Trade Zone.

Solution
Centrepot worked with the Economic Development Staff in Memphis to become eligible to function as a Foreign Trade Zone. The process was simple. Now, Centrepot operates as a Foreign Trade Zone and has expanded their facility to four times its original size at opening. Centrepot believes their business has grown as a direct result of being a Foreign Trade Zone.

Results
Today, Centrepot services all types of clients who benefit from the Foreign Trade Zone. They have more than doubled their revenue in three years and are currently 102% larger by freight volume than they were in 1998. They have done so well in taking advantage of the benefits the Zone offers that many other communities have come to them to ask for advice in setting up a similar program in their cities.

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