Tech, Manufacturing, and Logistics Drive Industry Innovation

Technology, manufacturing processes, and logistics are deeply interconnected: advances in one area directly influence the others. In recent decades, however, manufacturing innovations have accelerated technological adoption, pushing logistics companies to integrate new tools and systems to meet evolving industry demands.

Evolving Manufacturing Processes and Their Impact on Logistics 

Technological advances in manufacturing processes are reshaping logistics needs in the aerospace and automotive sectors, introducing new challenges as change accelerates.

“Digital transformation is irreversible; it cannot be stopped. It is essential to understand what works, what does not, and how AI can be integrated ethically and effectively into the industry. The key is to manage these changes properly and work toward a global convention on its use,” says Felipe García, Business Development Manager, British Standards Institution (BSI).

Examples include automation and robotics in the automotive industry and AI-assisted design and additive manufacturing in aerospace. Automation standardizes processes, speeds production, and reduces labor needs. According to The Global Robotics Report 2023, automation in automotive manufacturing is projected to grow 14% annually through 2026. However, lean, traceable inventories also require more precise and frequent deliveries of parts. In aerospace, additive manufacturing reduces prototype needs and can cut time-to-market by up to 64%, according to Raise3D.

Data analytics further enhances efficiency by optimizing processes, anticipating demand, and improving coordination. While results are more visible in automotive, it has also accelerated traditionally artisanal aircraft production. Still, adoption varies. “Industry 4.0 offers transparency, but efficiency gains in aerospace are not always enough to justify large investments. Adoption should follow a clear cost-benefit analysis,” says Dennis Schunigi, Partner, Ingenics.

Just in Time, Just in Sequence, and Just in Case
Recent global disruptions—from pandemics to wars and trade-route blockages—reshaped supply chain strategies. Some companies embraced the Just in Case (JIC) model, stockpiling parts to hedge against interruptions. Others doubled down on Just in Time (JIT), eventually evolving into Just in Sequence (JIS), where materials not only arrive on time but also in the exact order needed.

“Companies must know where their parts are and understand the risks at every step. Without this visibility, disruptions can halt production overnight,” adds Schunigi.

Each model has trade-offs: JIC offers resilience but demands space and risks obsolescence; JIT minimizes inventory but increases vulnerability; JIS improves precision but is highly sensitive to delays. Some firms, like Mazda, now use hybrid models.
“We have learned from past crises,” says Miguel Barbeyto, President, Mazda Mexico. “Our strategies focus on decentralization, engineering flexibility, and maintaining stock of critical parts. Diversification of suppliers and alternative components are key to reducing vulnerabilities.”

The Rise of Multimodal Approaches
“Large foreign companies have invested heavily in technology, using route planning and data analysis to optimize operations. But most logistics providers still just move packages from point A to B with minimal optimization,” says Federico Tamayo, Director and Founder, Last Mile Consulting. Smaller firms often lack tools to improve efficiency, reduce costs, or enhance delivery times—creating bottlenecks.

Traditionally, multinational companies relied on multiple logistics providers for air, sea, land, and last-mile transportation. While this could reduce costs, coordinating across so many providers often canceled out savings.

According to Mexico’s Ministry of Economy, the Transport, Postal, and Storage sector attracted US$2.73 billion in FDI in 2024—7.4% of Mexico’s total and a 19.6% increase over 2023, according to Nearshoring News. This growth has fueled the rise of major multimodal service providers.

Two advantages stand out:

• Centralized management, reducing the need for large in-house logistics teams.

• Operational flexibility, allowing companies to navigate disruptions without halting production.
   

“The pandemic highlighted the importance of knowing all suppliers and having contingency plans for multiple scenarios,” says Sandra Gómez, Vice-President and General Director for Mexico and Central America, ARGO-EFESO.