Comprehensive Approach Drives Logistical Efficiency

Q: Since its inauguration in February, how have operations developed at the company’s Distribution Center (CEDIS) in Queretaro?

A: Operations at CEDIS have advanced significantly since February. The initial phase involved the modernization of various systems and infrastructure to streamline and automate processes. One key aspect was recruiting new labor, which has proven to be a demanding endeavor. The relocation of vital organizational components to Queretaro has also required careful management to ensure its smooth integration.

The CEDIS sets itself apart through its comprehensive approach. More than just a storage facility, it serves as a versatile hub for the company and other market players. The facility is accredited to manage diverse equipment, including refrigeration units and freezers. It is the largest facility of its kind in Latin America. As operations advance, CEDIS continues to drive the region's technological advancement and logistical efficiency.

Q: What priorities need to be addressed and how are you advancing these efforts?

A: The current phase of the project involves the allocation of a second investment of MX$350 million (US$20.5 million). The initial MX$350 million was invested in securing the land, construction and related essentials. The second investment will focus on enhancing our infrastructure, optimizing our truck fleet and technical systems and implementing ERPs like SAP, among other areas. We will also expand our workforce and invest in automation, implementing advanced technologies like cameras and a QR system. 

Q: The goal of the CEDIS was to strengthen El Crisol’s position in the Mexican market. How has this process evolved and what are your projections for the near term?

A: Initially, we focused on implementing automation and refining operational dynamics, ensuring the seamless synchronization of inventory management across diverse subsidiaries. 

We have optimistic projections for the near future. We anticipate a seamless transition to the CEDIS, bolstered by the confidence of integrating proven practices. This cohesive strategy is expected to enhance our market position, streamline operations and solidify El Crisol's standing in the Mexican market. 

Q: How have your logistics and distribution processes improved and what impact has this had on operational costs?

A: Our processes have improved thanks to automation and operational refinement. This comprehensive approach streamlined inventory management across subsidiaries and adeptly accommodated diverse requisites, resulting in lower operational costs.

Automation, particularly within the subsidiaries, has led to enhanced efficiency and accuracy. By seamlessly synchronizing inventory and addressing logistical nuances, we have significantly reduced errors and streamlined operations. These improvements have, in turn, contributed to the reduction of operational costs. As we fine-tune the process, we are confident that the ongoing enhancements will continue to drive operational efficiency and contribute to sustainable cost savings over time.

Q: As the industry sees pandemic-related demands wind down, how is El Crisol adapting its product offering to the industry’s needs?

A: The landscape has undergone remarkable shifts, turning what was once optional into an essential necessity. It is imperative to remain agile across products, markets and supply chains. El Crisol's Distribution Center, which was built to meet the demand for reliable supply chains, encapsulates our adaptability. This responsive approach is shaping the future, fueled by diversification, proactive strategies and unwavering customer focus.

Q: How has El Crisol's online platform enhanced product accessibility and availability? 

A: The introduction of El Crisol's online platform in 2020 marked a step forward in product accessibility and availability. This digital avenue proved successful among smaller customers and laboratories, which sought convenience in viewing product details, comparing prices and accessing high-quality images. However, this success was observed predominantly within specific customer segments. Other clients such as farmers, industries and universities prefer traditional purchasing methods due to the need for careful handling, installation and certification.

While the online platform has its benefits, traditional purchasing methods continue to be prominent. Customers in research and academia continue to prefer established sales processes. The complexities of transporting chemicals and the need for specialized handling has played a role in maintaining this preference. 

Q: What are the benefits of your partnership with Científica Senna and Lauka Mexicana? How do these collaborations contribute to the company's growth?

A: El Crisol is composed of subsidiaries tailored to specific market segments. The Scientific Center, for example, exclusively serves the life science sector, focusing on genetics, biology, immunology and physiology. 

Strategic collaborations with partners, such as Científica Senna and Lauka Mexicana, further amplify El Crisol's growth. Científica Senna concentrates on the life science domain, while Lauka Mexicana is effectively engaging with Mexico's extensive network of sub-dealer companies. These partnerships reflect El Crisol's comprehensive approach, positioning the company to successfully navigate diverse markets and channels. 

Q: How does your product portfolio support the development of strong talent for healthcare operations?

A: El Crisol's strategy focuses on the scientific arena, particularly in research and education. This product segment is strengthened by our association with the American Type Culture Collection (ATCC) and other key institutions. ATCC has a broad range of cell line products, which are essential raw materials for a broad spectrum of research projects in Mexico. 

El Crisol's portfolio encompasses a comprehensive range of products designed to cater to both educational and industry demands. They span from cost-effective, quality educational materials to cutting-edge, high-value items, such as medical devices for oncology. The company's approach involves continuous investment in diversifying its product range, ensuring accessibility to a wide audience. This strategic breadth enables El Crisol to provide offerings that range from products with more affordable price points to those representing the latest innovations. The company's portfolio serves as a toolkit that supports the development of healthcare professionals and talent across various operational spheres.

Q: What are the company’s goals for 1Q24?

A: We are focusing on expanding the reach of CEDIS, securing initial customers and enhancing our e-commerce platform for a seamless experience. By integrating automation, the Distribution Center will enable customers to easily track and stay up to date on their orders. In 2024, we plan to bolster our support strategy by leveraging our Solution Center to penetrate Central and South American markets more aggressively. We plan to deepen our expertise in these markets and strengthen our HR department and teams.

We will renew our branch office in Guadalajara, Jalisco, in the first quarter of 2024. We acquired new land and facilities to cater to the growing opportunities of this thriving pharmaceutical hub, which is the second-largest in Mexico. 

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