Single Platform Ensures Clear Shipping StrategyFri, 12/01/2017 - 15:23
Q: How much of an impact does the Mexican aerospace market have on Expeditors’ worldwide operations?
A: After 21 years in Mexico these operations have become the fastest growing of all Expeditors’ facilities around the world. The airfreight market is growing in Mexico, especially compared to the rest of Latin America. Expeditors’ market share is below 5 percent, so there are enormous opportunities for us to grow in this segment.
Our market penetration in Mexico is similar to our share in the rest of the world. Expeditors’ relationships with aerospace companies in the US are more established than those in Mexico. We are only beginning to make waves in the aerospace industry. Being a service integrator and wanting to provide flexible and varied services to our customers, we developed strong partnerships with a wide variety of companies. We have excellent relationships with airlines, trucking companies and warehouses.
Q: How do you capitalize on your global network?
A: We have a number of different solutions for all industries, but our core solutions include our single platform and business solutions department. We have a single system for all the different branches. When customers do business with us, they work with one single system no matter where they are in the world. The platform is electronically integrated, which allows us to have a wide variety of different measurement tools for customers. The single platform is reliable and provides real-time information for tracking from all branches with access.
Q: What are the main challenges you face in Mexican industry?
A: Infrastructure problems are the main challenge, especially for airfreight. The limitation of direct international flights from most Mexican cities results in expensive and time consuming cargo changes. Old infrastructure, such as the Mexico City airport with its limited customs holding areas, also make it more difficult for companies that manage airfreight.
Q: What are the main competitive advantages you offer to clients?
A: Our main advantage is the organic growth of our systems and staff. The fact that we have not sold, bought, or merged with other companies has allowed us to have a single platform. This also ensures a clear strategy for human resources. We hire mainly from Mexican schools and almost never from the competition. The company offers an internship program, in-house training that motivates our employees, and a very low turnover rate. Our staffing strategy creates stability within the company, which is as important as client retention for a company to prosper.
Q: What solutions have you created for other manufacturing industries?
A: Although airfreight is our strongest sector, we consider ourselves to be logistics integrators. The more our business solutions department can integrate different areas for the customers, the stronger our solutions will be. We manage a lot of airfreight for the automotive industry, and we have new technological tools to help with reliable tracking.
The shipping methods that clients prefer depend on their budgets and the industry’s needs. The contract manufacturing industry produces high-value products with short shelf lives, while the healthcare industry moves expensive products that often require temperature control. Automotive has production constraints so companies need to move products quickly. All these industries need a fast airfreight service.
Q: What are your expectations for the rest of the year?
A: We have very high expectations. Our own growth in the past five to six years has been rapid, and there are still industries and markets we intend to penetrate. We expect 2017 to be a big year for Expeditors in Queretaro and we hope to gain more business in the Bajio region.