Logistica de Mexico was founded 18 years ago to provide consultation for companies on their supply chain and logistics. When we founded the company, we focused on SMEs as these represent 90% of the economy. Our focus was to implement projects for such companies and help them improve their logistics and supply chain, and to be more competitive in their markets. Logistics is largely divided between two sectors of supply chain: planning and execution. We find logistics and supply chain in almost every phase of a company's operation, whether it is buying raw material or distributing to the final market. Planning can help players avoid spending too much. In these last few years, awareness of the importance of logistics has increased. Companies that invest in their logistics and supply chain are more competitive than ever before. We mainly found, 18 years ago, that CEOs of companies did not want to know anything about logistics, as though moving products was an unimportant part of their operations. Their focus was on other parts of the company, such as manufacturing, finance, or sales. Nowadays, if you ask CEOs, over half find logistics to be a strategic subject for their company's performance and results. They are more involved in these matters.
Aug. 19, 2019
Director General, Logistica de MÉxico
The Mexican market is definitely much bigger than other countries in LATAM. There are about 140 million people in Mexico compared to 30 million in Peru. The purchasing power in Mexico is much higher than in Peru as well. Therefore, as a multi-Latin company, we want to grow in the Latin American market to enter other countries, and Mexico is one of the bigger options. It also has the advantage of having a market that is similar to others we operate in. While there are other big markets such as Brazil, there is a language barrier, and we decided to enter the Mexican market in 2010, and we have been growing since then. The market is extremely large. We expanded our facilities in 2018 and made large investments, even though we are still waiting to see what will happens with the logistics of the new tri airport, and how will it affect cargo, as we also have bonded warehouses in Mexico City and Toluca. At the end of the day, we adapt to the rules of the game; an airline has to fly, an airport has to receive it, and cargo has to be delivered. In the Mexican City Airport today, we have two facilities, and while studies are being conducted for Santa Lucía, we are working with Toluca Airport to expand our presence there. We had to grow our facility in Mexico City to accommodate the amount of cargo we receive today.
Managing Director, Leschaco Mexicana
As a logistics provider, there is a positive increase in demand from the chemical industry to import products. However, this is not good news for the chemical industry itself, as it would prefer to have fewer imports and more exports to reach a more balanced business portfolio. We are fairly pleased with the current scenario and see it as a great opportunity to further grow our business within the chemical sector. On the other hand, we also would support more balanced import and export volumes. Leschaco is a rapidly growing medium-sized global player with a fleet of more than 5,000 tank containers that we operate on a global basis. Right now, we have more tank containers being imported than exported, which does not always make the whole operation profitable. The country does not have the infrastructure it needs to meet demand. The government has not given enough support to motivate investment; however, the country is in the first steps of undergoing a transformation. It will take some time to see the fruits of this effort as private investment continues to seep in. With regard to new services and products, it is important for Leschaco to expand with contract logistics in the Mexican market. Warehousing and domestic distribution will complete our door-to-door logistics portfolio, becoming a real one-stop shop solution for our customers.
Managing Director Mexico, Crane Worldwide Logistics
Crane Worldwide Logistics, a global freight forwarding and logistics service provider, was established in Houston in 2008. The company opened its Mexican operation 10 years ago, in 2009, one of its first overseas offices and a strategic location due to the important trade volume between both nations. Today, we have five offices here: Mexico City, Guadalajara, Monterrey, Manzanillo, and Tijuana. Between the industries we are serving in Mexico, oil and gas, automotive, and technology definitely represent the most important ones in terms of volumes of freight transported. However, we are expanding as well into other very dynamic sectors such as renewable energies, aerospace, and mining. In 2019, we plan to increase our footprint in the southeast of Mexico, to come closer to our growing oil and gas clients. We handle our business with a keen sense of urgency, and we strive to be our clients' advocates. Mexico has made great progress over the last 15-20 years in terms of logistics. Time spent at customs in particular has improved significantly. Mexico has its local regulations, and specific customs regimes that can sometimes be confusing for foreign companies; however, as long as rules are followed properly and paperwork is in order, we have come quite close to US or European standards in terms of efficiency.
Luis Guillermo Ramirez
The Mexican economy is a work in progress. That means that the current administration is trying to tackle certain problems that have been inherited from other administrations. Corruption and poverty are problems that most emerging economies, and even the developed world, are facing today. The current leaders are trying to cope with these issues by utilizing all the tools available and the different policies that they can implement. We believe Mexico is in the transformation process, and we have an optimistic outlook, regardless of comments about the government being center-leftist. At the end of the day, this economy will surge. It is an economy that is too big to fail. We are focusing on technology, automation, people and processes. It as an overall global strategy, and we believe transformation is key. We have a five-year plan and are reviewing our procedures every six months. One of the key aspects of Tical is that we learn every day. We apply those learning points in changing our strategy to suit and accommodate what the consumer needs. Our main differentiator in Mexico is a focus on specialization from the Central American market. We bring solutions that are not commonly seen in the Mexican logistics sector. We have the knowledge of 46 years in the market in Central America. We are able to tell customers everything about supply chain in the region.
General Manager, MLTI
MLTi is present across Mexico at strategic points such as Mexico City, Aguascalientes, Guadalajara, San Luis de Potosí, and Querétaro; our core business is the automotive sector. We handle considerable land shipment to and from the US, which makes up 60% of our business. We have been growing and getting closer to the assemblers directly. Traditionally, we have worked with Tier-1 and Tier-2 companies, but today we are seeing demand coming directly from the assemblers such as General Motors or Mazda. They see in us a highly competitive company compared to other logistics firms that while very large, lack the personalized treatment we have with assemblers. We provide services for the US, Brazil, and certain countries in Asia. Moreover, we also offer financing options, whereby companies have greater flexibility in terms of payment. We are already working with companies that produce autoparts for electric cars. In the long term, this trend could affect logistic providers because electric cars have fewer engine parts to be transported. For now, we are not seeing much change in this aspect. Assemblers will take some time to adapt to electric cars. In the meantime, we are seeing business as usual. The eventual transportation of electric auto parts will happen as companies start doing more tests and implement new production processes. For example, we brought some engines from Austria by air to a plant in San Luis de Potosí.