Multi-Modal Transportation Solutions for The Automotive IndustryBy MBN Staff | Tue, 01/01/2019 - 13:31
Q: How has Hub Group strengthened its logistics offering and how has that strategy impacted the company’s operations in Mexico?
A: Hub Group’s vision is to be a world-class, multi-modal transportation company. We have focused our corporate development initiatives on expanding and enhancing our multi-modal transportation solutions, including an acquisition strategy that introduced dedicated warehousing capabilities. For the customers we service in and out of Mexico, our multi-modal strategy has optimized their supply chain by leveraging our strong rail relationships and deep carrier base on both sides of the border. With a single point of contact, we deliver a seamless multi-modal solution that gives customers better visibility and more control over the cost and performance of their network.
Q: What role does the Mexican automotive industry play in your development strategy?
A: Network balance plays a critical role in providing the best service and value to our customers. We constantly look for opportunities to reposition our network’s capacity with the best potential for immediate response. This tactic helped us maintain even capacity levels when the market tightened in 2018. We were able to target Tier 1, Tier 2, Tier 3 suppliers and their OEMs to find suitable network lanes, and help them reposition equipment while offering cost-effective capacity. In 2019, our strategy continues to focus on these opportunities, due to their strong synergies with our natural network pattern.
Q: What does Hub Group look for in its transportation suppliers to ensure valuable multimodal transportation services?
A: Our focus is on safety and service. The quality of our carriers is a reflection of the quality of our company, so we carefully approach, procure and activate carriers in our network. With an established carrier management system, we actively track critical KPIs, safety performance, insurance status and capacity to ensure our customers are matched with the most adequate carriers on both sides of the border. This blend of high-performing C-TPAT-certified carriers optimized by Hub Group is a tailored solution that is executed with a single point of contact to streamline communication, generate results and ensure safety and security from door-to-door.
Q: What are the main gaps still to be filled in Mexico’s supply chain logistics offering?
A: In Mexico, there is a great opportunity to shift the transportation industry’s mindset from a transactional, capacity-focused operation to a more strategic, holistic solution. Integrated services help provide better visibility and assign solutions that can mature over time, offering consistency that is more carrier-friendly. As customs and storage services become a bigger part of the supply chain execution in Mexico, using a provider that can manage these ancillary elements alongside the companies’ multi-modal network will drive the best value to the business. We have aligned our strategy to provide fully-integrated solutions that complement the service-sensitive nature of automotive networks and have yielded proven results.
Q: What is Hub Group’s strategy to support JIT logistics for automotive companies?
A: Capacity is just part of the solution we deliver our customers. A consultative approach coupled with proactive supply chain engineering is what allows us to make a true impact on our customers’ networks. We engage with OEMs and their suppliers to understand their unique processes and develop solutions that meet network demands. Because of this approach, we have crafted new solutions that enhance our customers’ ability to manage cost and performance in a JIT scenario, including various multi-modal expedite solutions depending on opportunity.
We have also invested heavily in technology in recent years, most notably by being the first intermodal provider to have GPS units installed in each of the 53 company-owned intermodal containers. Through better visibility and enhanced customer platforms, we can more precisely manage network exceptions and provide the tracking necessary to allow for mitigation before there is a disruption. Since many customers rely on maintaining a quality relationship with the OEM, we put it on ourselves to align our solutions with their needs and generate results.
Q: What is Hub Group’s strategy to reduce the carbon footprint of its clients’ embarkments?
A: Hub Group is an industry leader in sustainability and holds industry accreditation from the EPA SmartWay program. The company is also EcoVadis Bronze-certified. Intermodal conversion is at the heart of our sustainability initiative due to its meaningful carbon dioxide reductions and day cab-friendly networks. We also take an analytical approach to our customers’ networks to identify opportunities for optimization.
Hub Group is a US-based transportation management company founded in 1971 that specializes in multimodal logistics services. In Mexico, the company focuses on southbound logistics for several industries, including automotive