Local Logistics Ready to Break Throug

Q: From a logistics point of view, what are Nuevo Leon’s main infrastructure needs and capabilities?

A: Nuevo Leon has sound road infrastructure but air transportation is hampered by the limited number of international flights out of Monterrey International Airport and airlines here generally use smaller aircraft that do not have enough cargo space. The airport lacks the capacity to support large aircraft. This limits our ability to transport pieces over 250kg, forcing us to transport those by road to Mexico City. Another alternative is for companies to transport their products by road to a port or to a different airport.

This is not the case in other cities. Guadalajara has grown considerably due to the food and electronics industries. These sectors contributed to the growth of the city’s airport and its international aerial connectivity. Monterrey’s infrastructure has resulted in local companies traveling to Houston to transport goods on larger aircraft, especially in the case of the oil and gas industry.

Several companies are unaware of this possibility. Greater communication regarding the area’s infrastructural options would greatly benefit local manufacturing companies by generating a more effective supply chain.

Q: What are Dylo’s main strengths and challenges as a local logistics business?

A: We realize that each industry has unique demands and most companies already have well-defined routes and processes. The aerospace sector requires lean delivery times in comparison to other sectors. Dylo is in an excellent position to support the industry because we are the only Mexican member of the Aerospace Logistics Group, an international association whose goal is to address the sector’s needs.

Dylo’s goal is to consolidate by focusing on three areas. The first is human capital because our employees are our most valuable asset. The second area of opportunity is our finances, which can be improved with more discipline. The third step is to generate different platforms in various industries. Many logistics companies use a single model for all companies but creating a specific platform for each individual sector makes a significant difference.

Our main strengths are in sea and aerial transportation, while our largest challenge is acquiring human capital and financing as we grow. We also need to increase our presence in Mexico where there is a great deal of competition.

Q: Why are Third Party Logistics (3PL) not more popular in Mexico?

A: 3PL is less popular because most foreign companies that enter Mexico already have well-developed logistics plans. Even those that do not operate their own logistics have strict guidelines that force them to use a predefined company. Many of these companies do not realize that international logistics companies are unaware of the local economic environment, legislation and processes to which they need to adapt. Large logistics and transportation companies may work smoothly in other economies but can end up being unprepared for Mexico. It can lead to subpar services that may impede the growth of the companies for whom they work. Local companies are better acquainted with Mexico and its characteristics.

Q: How can Dylo and other companies take advantage of their regional knowledge to increase their client base?

A: Local logistics companies can provide the same coverage as international businesses at similar prices. We adapt efficiently to the needs of foreign firms yet we are often overshadowed by big names. The problem can be solved by approaching companies directly.

Not having offices in their countries can complicate the process because foreign companies are often unwilling to switch from their established providers. It is difficult to create new relationships with clients because they have many companies to choose from and we are not well known yet. To attract potential clients, the most effective strategy is to offer a cost-savings solution. We must to understand the company, its processes and sector to ensure satisfaction. In some cases, alliances can be created with foreign transportation companies, which is beneficial for both parties.