Feb. 4, 2015

Alexander N. Schad

Dominican Republic

Alexander N. Schad

Executive President, Schad


Alexander N. Schad was born in 1971 and is currently the Executive President of Frederic Schad, SAS with over 20 years experience in the transportation industry. He has a Bachelor’s degree in Finance from the University of South Carolina and a Master’s degree in Business Administration from the Kellogg Business School at Northwestern University. Alexander is the former President of the Dominican Freight Forwarder’s Association and current Treasurer of the Latin American Logistics Operators Association. He is also Vice-President of the Trade Facilitation Committee at the American Chamber of Commerce of the Dominican Republic.

In what sectors are Schad's services most required, and what customers are you targeting?

Schad mainly serves the consumer goods, food and beverage, pharmaceuticals, technology, and telecommunications industries. Our motto is “get there first." So, for example, pharmaceuticals is an important sector for us because of the time-sensitive focus. We are also active in the free zone manufacturing sector, which has a large component of medical device firms. In term of clients, we focus on multinationals and large national companies, mainly because these are the organizations that are more advanced in their logistics planning and are willing to outsource.

What is the importance of your partnership with Deutsche Post DHL, and its role in the overall development of Schad?

DHL Global Forwarding has been our partner for more than 40 years. Branding-wise, it is important for us because DHL is the number-one logistics company in the world. However, more important than this is the network that DHL has. While Schad's presence is in the Dominican Republic, we have access to the offices of DHL everywhere in the world, permitting us to serve customers along the entire global supply chain, from origin all the way to the end consumer.

What innovations and technologies is Schad using for its operations?

We are implementing automated warehouse management systems that are controlled by radio frequency, which gives us immediate data and inventory visibility. Within the transport sector, we have an in-house Transportation Management System that controls our 250 trucks while being monitored by GPS. In 2014, we are also implementing a business process management system as well as an electronic document storage and retrieval system, which aims to improve our overall process efficiencies.

What have been the major milestones for Schad in 2014?

During 2014, we have consolidated our trucking network to provide daily coverage to all the municipalities of the Dominican Republic. Our logistics operation in the eastern part of the island was consolidated, and now offers customs brokerage, warehousing, and distribution from our center in Punta Cana, mainly to serve the tourism sector. These services guarantee our customers same-day deliveries with over 99% accuracy. Looking to reduce risks, several projects were successfully completed ending with our Business Alliance for Secure Commerce certification.

In August 2013, SOFOS unveiled the country's biggest rooftop solar panel array, at your logistics complex. What is the importance of this investment for the development of the country's energy sector?

We feel good that our green energy production is equivalent to the consumption of over 100 homes. It is also a sound economic decision earning a positive return on investment. The Dominican Republic has long had a problem regarding electricity, with high costs, irregular production, and blackouts. We are heading in the right direction to improve that. We applaud the government's decision to provide incentives to ensure more green energy is produced. Schad also has a second such facility, which came online in July. The new project is in our truck terminal, and is about half the size of the first one.

How would you assess the current condition of the logistics sector in the Dominican Republic and the country's potential to become a future regional hub?

I think, as a country, we have an adequate and comparatively modern infrastructure. Established service providers such as airlines, ocean cargo liners, land transport companies, logistics operators, and warehousing companies, offer multiple competitive services. The Dominican Republic just needs two more things, the first being the legal framework that will enable the country to become a hub. Under the current framework, it is too expensive and time consuming to import and export products as a transshipment hub. We are already working with the presidency and the customs authority on a new regulatory framework. Secondly, regarding education, we still need quite a bit more development. There is a need for more in-depth specialized training in our industry. Currently, almost everyone in this sector learns on the job. The academic sector offering is a necessary ingredient for the competitiveness of the Dominican Republic.