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Using E-Logistics for Effective Nearshoring

Edgardo Hamon - Dachser Mexico
Managing Director

STORY INLINE POST

Sofía Garduño By Sofía Garduño | Journalist & Industry Analyst - Thu, 04/13/2023 - 09:00

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Q: How does Dachser offer a secure and operational logistics network across the different industries in which it operates?

A: Dachser has a rich history dating back to 1930. We are a traditional and family-oriented company and, as of 2022, Dachser has accumulated over €8 billion in revenue. With a global workforce of over 32,000 employees and more than 400 owned offices spread across 40 countries, we are a significant player in the industry. Our operations involve the annual transportation of over 42,000 tons and 81,000 shipments worldwide. We also possess 1.7 million m2 of space that we make available to our clients across the world. Our proprietary operating system connects all our operations, ensuring that they consistently take place under the same set of high standards.

We provide intelligent solutions to our customers through three core divisions: European Logistics, Dachser Air & Sea Logistics and Food Logistics. The last one specializes in perishable and  European Logistics robust force in the market, our customer retention rates reflect our commitment to building long-term relationships with clients. We operate under a flat hierarchy, which enhances our agility when making critical business decisions. 

Q: What added value does the company offer its clients through its e-logistics platform? 

A: We offer our clients various platforms that provide them the flexibility they require. Our in-house system Othello connects us globally for all maritime and air operations. We have Domino for terrestrial operations in the European continent, which connects our extensive network of over 15,000 units. Mikado is our warehouse management system that streamlines operations. 

We continue to grow and invest in IT platforms by acquiring companies with dedicated software. This strategy has already yielded results because we can now provide more information and value-added services to our clients. E-logistics has become increasingly important, especially after the pandemic, and we aim to expand our services by developing our own e-commerce platforms with added features to enhance the customer experience.

Q: How is Dascher adapting to the nearshoring boom?

A: Nearshoring has presented a significant growth opportunity for us. With over US$2.5 billion in investment coming in for nearshoring, we recognize the growing interest in this trend, particularly in the automotive sector. In anticipation of this development, we have taken steps to strengthen our national presence in key cities, such as Guadalajara, Puebla, Queretaro and Monterrey where we have a well-established team. 

Nearshoring operations require a different type of management, so we have built teams with extensive industry experience. We proactively engage our clients, attend industry events and keep a strong pipeline to stay on top of market trends. We also have a presence in Queretaro, which continues to see growth in foreign investment. Furthermore, we are committed to investing in Guadalajara and Monterrey to expand our presence and provide comprehensive business solutions. We provide service to the entire supply chain.

Q: What are Dachser’s objectives in the aerospace industry?

A: The aerospace industry has significant potential, which we have seen through our success in the Bajio. Dachser’s infrastructure is strong enough to support our growth in this industry. We aspire to grow in various sectors and we have several groups dedicated to different areas. In aerospace, we have set short-term goals and are taking the necessary steps to obtain global certifications before entering the market. Currently, Dachser has ISO 9001 certification to operate in the entire aerospace sector.

Q: How are you leveraging the opportunities that the COVID-19 pandemic introduced to the healthcare industry?

A: Our company has experienced significant growth and in 2022, we conducted over 180 charter operations, many of them for the pharmaceutical sector. We have obtained certifications in the Americas and the European Union that demonstrate our commitment to quality and safety. Our team aims to expand our services in the pharmaceutical industry. We are actively seeking local partners with refrigeration chambers to cover cold chain logistics. Our progress in this area has been significant and we anticipate even more growth in the future.

Q: How has Dachser’s new office in Puebla benefited the company’s operations and what are your expectations for its performance?

A: Puebla is a highly attractive market due to the presence of large OEMs, such as Volkswagen and Audi. It also has an extensive network of Tier 1 and Tier 2 suppliers. We have experienced significant growth in this market largely due to the positive feedback from our customers. Our focus on providing excellent service has been instrumental in driving this growth. By offering personalized services that are tailored to the specific needs of our clients, we have been able to expand our footprint in the region. We are actively considering opportunities to expand our contract logistics capabilities in Puebla particularly in the area of storage, in which we anticipate a surge in demand in the coming months.

Q: Dachser just implemented an Emission-Free Delivery service in multiple cities. What impact does Dachser expect from this program?

A: Dachser has a well-established policy that prioritizes economic, social and environmental matters. Our commitment to the environment is not limited to our regional directors but also extends to the executive board. We are also working on local codes of ethics and sustainability. Dachser in the European Union has made significant progress by transitioning to low-emission units and we plan to switch all units to electric in the medium and long term. By 2025, our commitment is for all units to be electric. In Mexico, we are actively encouraged by corporations to invest in solar panels in our own warehouses to reduce our environmental impact. We are determined to contribute our part to make a positive change.

Q: Dacsher has a large female workforce in Dachser Americas. How relevant is the participation of women in Dachser Mexico?

A: This is essential to Dachser Mexico, which has two women on its management team. More than 60% of our fleet are women. This topic is of great importance to Dachser, as we strongly support gender equality and recognize the importance of seeking more opportunities for women within the company.

Q: What new projects is the company launching in the short term?

A: Our goal is to further enhance our presence in the automotive sector by focusing on European companies, leveraging our consolidation through our own units in the EU. To maintain a competitive edge in a challenging market, we have established specialized agreements with certain carriers for air and sea transportation. We have also created a unique product called Interlocking, which unites European logistics with Air and Sea Logistics. By streamlining services, costs, transit times and processes, we can offer our customers an unparalleled experience. This is especially beneficial for accounts with business in both regions. We foresee a promising future thanks to this strong collaboration between our two business units. As always, we strive to deliver innovative solutions that meet the needs of the market.

Dachser offers logistics solutions throughout the whole supply chain thanks to its closely integrated, worldwide transport and warehouse network, which comprises over 400 locations in 40 countries. 

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