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Mexico 2019 | TRANSPORT | INTERVIEW

UPS is betting on general trends in the growth of e-commerce to propel its operations in Mexico, already a crucial logistical hub for the North American economy.

Ronald Mayorga
BIOGRAPHY
Ronald Mayorga started his career in UPS over 31 years ago. Before being appointed President of UPS Mexico, he was Director of Operations in the Red River South District, one of the biggest districts in the US. During this time, he was responsible for restoring operations after Hurricane Harvey in 2017 in only nine days.

What role does Mexico play in the company's operations?

Mexico has an extremely significant role to play. We are now in a global economy, and this means all international markets have a massive role to play in contributing to UPS' bottom line. The best part about Mexico is that we are growing. 2017 was a great and record-breaking year, and in 2018 we were able to surpass that. Between January 2018 and January 2019, we grew 20%. Mexico plays a huge role in the UPS enterprise. We seek to become the leaders in this market, and we are actively pursuing this goal.

How is the rise of e-commerce impacting UPS in Mexico?

We cover all the different sectors in this area. Right now, e-commerce is growing the fastest. In the next five years, e-commerce is predicted to grow by 35%, which will challenge us to keep up with this fast pace of growth. Mexico has a population of around 130 million, and 62 million of them have access to the internet; however, only 2% of those 62 million are currently purchasing online. Still, the average age in Mexico is 28, meaning that soon, there will be an explosion in e-commerce. We need to be ready for this growth, and we are excited by the many prospects on the horizon. We are also interested in assisting firms with logistics services and growth development. We are keen to help the micro-, small-, and medium-sized firms that will enjoy growth in the coming years. We will focus more on the export component of our business. We will continue to expand just as we always have. Domestic e-commerce is another area that we will focus on a great deal.

How does UPS use technology to improve its operations and efficiency?

Every year, UPS invests USD1 billion in technology. Some of this technology goes into our vehicles, including telematics. Telematics is a system in our vehicles that allows us to assess the health and efficiency of our assets. The system lets us know when parts and components are about to break down, so we can change them before things can interrupt our operations. Additionally, there is a safety component to the system that tells us when drivers are speeding, not wearing their seatbelts, or tailgating. The other component of the system shows the driver the most efficient route.

In what ways is UPS improving the services it offers in the country?

This is difficult to identify because we offer many services. We recently opened a new service in Juarez, and cross-border travel has always been a challenge. A current challenge is how we can expedite moving goods and services from Mexico to the US. There is a great deal of red tape required for businesses to cross the border. There are many changes coming though, which is positive and will help the industry and economy. In Juarez alone, there are around 350 manufacturers interested in cross-border trade, and we are learning about the needs of these firms from a logistics perspective.

What are the main areas of opportunity you have identified in Mexico?

We are moving forward quickly in Mexico in terms of logistics. The new trade agreement with the US will open up many doors, and goods will be able to flow much more. This includes the flow of goods between countries, and we will only see more goods flowing around the region. The sky truly is the limit, and that is the exciting part about being in Mexico.