Logistics Done the Mexican WayFri, 09/01/2017 - 15:18
Q: As a Mexican company, what strategies have you implemented to compete against international logistics giants?
JV: Some of our clients have had experience with international logistics companies but have found there is no added value in their offering. Besides our storage and distribution services, we try to improve our clients’ operations by recognizing and highlighting areas for improvement. We like to consider ourselves a consulting partner for our clients. Rather than offering this as a separate service, we include it in our standard solutions
Dicka Logistics manages 152,000m2 of storage and distribution space in the country, including both our own warehouses and the in-house operations we manage through agreements with companies such Nemak and Whirlpool. In these cases, the client has its own warehousing facilities and we control all warehousing operations with our own employees, forklifts, scanners, security, racks, computers and preventive maintenance.
Q: Which companies are Dicka Logistics’ preferred clients?
JV: We are focused on big clients that need to move at least 3,000 pallets. We do not serve small operations and we try to have a fixed number of customers to offer a personalized service. Other companies our size like to handle 350 clients with between one and 3,000 pallets. However, those are complex operations because small customers can be very demanding. We sometimes service companies with 2,000 pallets or less but that depends on their growth expectations and how well they are doing in the market.
Q: Being a provider for Nemak, how important is the automotive sector for your operations?
JV: The automotive industry looks for good service; it does not care that much about price as long as it can get quality. Just-in-time is crucial because a faulty process can freeze a plant, which can lead to excessive costs. Developing our know-how in the sector is imperative and the fact that we are already working with a leading supplier like Nemak can help us greatly when attracting new clients.
Q: What are your strategies to grow your presence in major automotive hubs such as the Bajio region and the north of the country?
HC: Automotive clusters are recently playing a more active role in the industry by promoting projects that can benefit their associates. We are establishing close relationships with clusters both in the north and in the Bajio region. Aftermarket companies, in particular, require new logistics providers to support their growing operations. Many original equipment suppliers are entering this new business segment and we are targeting both Mexican and foreign players.
Q: What technology have you implemented to make your processes more efficient and to ensure traceability?
HC: We just finalized a significant investment in a warehouse and transport management system to improve our services. This platform will allow us to connect with our clients’ interfaces in real time, ensuring inventory control and traceability in all warehousing and distribution operations. Within the automotive industry and particularly in the aftermarket, we have found both fully automated companies and others that manage their operations traditionally. There is a great opportunity with all of them.
Q: How much has Dicka Logistics grown and what are your expectations considering the potential of the automotive market?
JV: Automotive keeps growing and we are ready to meet more clients in this sector, especially in the aftermarket segment that is growing at double-digit rates. Many companies want to grow their distribution centers, which means we can offer them our own facilities or in-house management of their warehouses. We want to make this industry a priority for Dicka Logistics and our goal is for it to represent 20 percent of our revenue. In 2016, we grew approximately 45 percent in revenue and we are expecting similar results this year.