Added Value Services Evolving Established Logistics Fleet Provide

Q: Tresguerras is now celebrating its 80th anniversary of operations. What have been your most important achievements throughout the company’s lifetime?

A: In 1935, Tresguerras started as a small regional company in the city of Celaya. At that time, there were only eight available trucks, and the route merely covered Celaya to Acambaro with a stop at Salvatierra. Operational growth was limited for the first 30 years, leading to the company almost going bankrupt in the 1960s. My father, Leopoldo Almanza Vera, decided to liquidate the company in 1968 and establish the current variable capital corporation. After this strategic move, the company’s growth soared. Today, Tresguerras specializes in package transportation and truck loading services, and is considered a packaging leader on the Mexico City to Ciudad Juarez route. Since I took over in 1992, we have focused on the three main areas of quality, technology development, and investment in infrastructure.

Q: What have been the primary approaches in ensuring that this growth and focus continues?

A: Firstly, we certify our service quality with the highest available credentials. In 2003, we received an ISO-9001certification leading to a systematic improvement in internal processes, with clear service indicators. We are currently being evaluated for the ISO-28000 certification, which is more focused toward safety than quality. The priority is prevention, so we try to stay at the forefront of every technological advancement to minimize any safety risk that could materialize. Secondly, our Tresguerras Digital Services tool was developed to collect information that will inform clients about the status of their shipments, including delivery confirmation, an email status service, and digital signature collection. Regarding infrastructure investment, we currently have 104 warehouses in 60 branches across the country, which has led to strategic alliances with key transportation players. Seven years ago we signed an agreement with UPS, which contracted a broad range of services from us. We now manage all of their Mexican packaging but we can also receive international shipments to any of our facilities as we offer cargo consolidation between Mexico, Canada, and the US. We are about to consolidate another alliance with a company that manages transportation processes in Central America, and our aerial cargo program is already in motion with a different company.

Q: How will the company increase its 95% coverage in Mexico to reach the complete territory?

A: Mexico City, Guadalajara, and Monterrey, have proven to be the most fruitful for Tresguerras. Mexico City alone holds one third of our total business, but Puebla and Toluca have also developed considerably. We expanded to the Pacific region four years ago and, although there were already well-established companies, we have been able to create solid connections with Tijuana, Mexicali, Hermosillo, and Ciudad Obregon, to name a few. The packaging volumes that we work with specifically alongside automotive OEMs are quite small. Even so, we are currently holding meetings with a Japanese logistics and transportation company that is very closely related to the automotive industry, as well as being very well positioned in the US with a keen interest in working in Mexico. If we can reach an alliance with this company, we will immediately have an advantage in the automotive industry, leading us toward 100% coverage and the expansion of our logistics operations. Tresguerras also offers services to complement our main packaging business, encompassing home collection and drop-off services, merchandise insurance, and storage facilities. The company is now also starting to be recognized as a logistics provider since we started offering storage, inventory, and reverse logistics services to our 8,000m2 Tultitlan warehouse, and we are opening another warehouse in Monterrey.

Q: What is your new vehicle acquisition approach in the context of the Incentive Program for Efficient Vehicles (PIVE) program?

A: According to the PIVE regulation program, every year we purchase 250 vehicles, of which 150 are acquired to expand our fleet, while 100 vehicles replace existing units. As a result we operate one of the most modern fleets in the country. We have a close relationship with Kenworth, Volvo, International, and Freightliner, with whom discussions are held every year to assess details regarding quality levels. This may include fuel economy, price range, financing plans, and post-sale service. The latter is the most important for maintenance and spare parts. Therefore, we have our own workshops in place where most of our truck maintenance is held.

Q: What strategies is Tresguerras implementing to attract new business?

A: The most important approach has been strategic alliances. As well as UPS, we have signed partnerships with CEVA, CFI, and recently with DHL. These companies help us attract clients, and we complement their services with ours. Our strategic alliances are extremely important, and we must continue to develop new partnerships. Our 2015 expansion targets have already been met. Therefore we have shifted focus toward setting up additional warehouses in large cities so that our clients do not have to drive long distances to drop off their packages, and our aforementioned aerial cargo project is a step we are very excited about. Our IMMEX division also improved its operations, taking on simple operations like stamping and packaging. Everything is performed manually without the need for a plant and we are expecting to close 2015 with 15,000 operators in this division.