INTEGRATE THE STATE

Mexico 2014 | TRANSPORT | B2B: LOGISTICS SOLUTION

International and domestic logistics firms recognize Mexico's unparalleled location, allowing for the development of comprehensive supply chain solutions.

Ingo Babrikowski
INGO BABRIKOWSKI
CEO
Estafeta
Jorge Torres
JORGE TORRES
President Mexico
FedEx Express

What is the basis of your success in Mexico?

INGO BABRIKOWSKI The most important component underpinning Estafeta's success is innovation and the search for new offerings to bring to our customers. Some time ago, we were the first company to use tracing and tracking in Mexico. We were the first to offer an overnight service in Mexico via air and also, during the economic crisis, we started to provide freight tracking services with the quality of a courier company. Lately, we have begun to offer a mobile platform for the iPhone and BlackBerry. In 2013, we launched a platform for e-commerce, which provides a store for our clients to sell their products online. We realized that many of our clients wanted to sell online, but didn't know how to do so. They would set up a webpage, but lack the appropriate payment facilities, which actually can be complicated for small companies.

JORGE TORRES FedEx operates in 220 countries and territories, and Mexico is one of the few markets where we have domestic services besides the US, Canada, UK, China, India and, more recently, Brazil. It is not only due to the proximity of the US, but also because we believe Mexico to be a key market in terms of internal commerce and economic growth. It is one of the 220 countries and territories in which we offer the most services, which is a confirmation of confidence that brings about better logistics solutions and possibilities for customers. We have a wholesale commitment to the country. I have been in the company for 23 years and believe in the evolution of FedEx in Mexico and FedEx with a Mexican flavor. We have active participation in the community. People, Service, Profit—that is the philosophy of FedEx. Putting people first is not only the right thing to do, but also good business. The corporation has grown based on that philosophy since 1973, and it will remain at the center of everything we do.

What challenges exist to expanding e-commerce?

IB E-commerce is quite young in Mexico, and is growing slowly. One reason for this is the culture; you have to learn to use e-commerce. For example, people do not want to reveal their credit card data online out of concerns over fraud. There are many other considerations in e-commerce; collecting at the consignee's door is complicated because the driver has to carry change, for example. It is crucial to offer a range of payment options, and we do so, including at convenience stores.

JT In Mexico, there are 17 million active internet buyers. The level is set to rise to 25 and then 35 within the next couple of years. That will lead to exponential growth, which is obviously important for us as a company and a nation. We offer e-commerce shipping solutions today and there are major retail companies utilizing FedEx. Since we started to work with them, the YoY growth in transactions is indeed exponential, although there is plenty more room for growth.