Miguel Muñoz
Managing Director of Geodis México
Geodis México
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View from the Top

R&D is not Only for Component Production

Sat, 09/01/2018 - 10:33

Q: How has Geodis built a name for itself in the Mexican automotive sector?
A: The automotive sector has been the cornerstone of Geodis’ growth in Mexico for the past 10 years. Our specialization in the industry has helped us build tailor-made solutions for our automotive clients and also to translate our knowledge into other industrial sectors. Although our growth today is not that reliant on automotive, this sector still represents 25 percent of our business. We understand that we cannot neglect our operations in this segment and we are continuously working to establish new partnerships both with suppliers and with OEMs.
The biggest advantage we can offer clients with our build-to-suit approach is our response immediacy in the event of any logistics emergency with the use of special charters or even onboard-courier services. Our team is highly trained in the industry’s language and we can help our clients track cargo not only by shipment but by part number. Even though suppliers may place an order for a specific product along with the rest of their materials, thanks to Geodis’ system OEMs can track a single part to know exactly when it will arrive to their door. We know what components are in each container, resulting in a much more efficient logistics solution with absolute visibility.
Q: In which automotive regions does Geodis see the most opportunity to grow its operations?
A: The Bajio and central Mexico are the main regions where Geodis has developed a strong presence. We have recently opened new offices in Leon and we already had presence in Queretaro and San Luis Potosi. Monterrey is also one of the last offices that Geodis inaugurated back in 2015. Over the last 18 months, the company has favored regionalization as a key strategy for further development and the north of the country has been a priority. Our first two years in Monterrey have been quite slow but after adjusting our business strategy and providing further training for our personnel, we expect to gain a much stronger position in the region.
Nationally, we have grown at a double-digit rate year-on-year for the last six years. In 2017, Geodis grew its operations by 17 percent and we are estimating an increase of 15 percent for 2018.
Q: What is Geodis’ experience in non-emergency operations?
A: We participate in our clients’ planned logistics and we have an internal business intelligence division, which we refer to as our R&D division, that helps us operate based on a company’s demand forecasts and inventory capabilities. We analyze our clients’ operations based on a long-term plan. Our business intelligence unit, coupled with our procurement division, creates an implementation plan that guarantees we will be able to meet our clients’ demands for the duration of the project at the price we originally specified. We dedicate whatever time and resources are needed to build a solution that meets all our clients’ requirements.
Q: Emergency services are becoming a standard offering in the logistics sector. How can Geodis take this service to the next level and stand out from its competitors?
A: It is true that logistics companies might have a similar service lineup, which means that the only true differentiator can be the experience and reliability that we offer to the client. Our team is in many cases multilingual or at least bilingual and is up to date with the latest needs and trends in the industry. We have even developed a Center for Automotive Competitiveness based at our headquarters in Mexico City and with branches all over the country. The center serves only our automotive clients. Many of our competitors split their business according to type of freight (air, sea or road) but we chose to build a single cell solely focused on the development of our automotive partners.