AMVO Recommends Optimizing Logistics in Mexico

The COVID-19 pandemic has accelerated how people communicate with the digital world. This transformation has greatly affected e-commerce for businesses and consumers, as both have had to adapt. The Mexican Association of Online Sales (AMVO) released a white paper on strategies in logistics based on current tendencies and success stories from national and international companies. AMVO is dedicated to optimizing Mexican logistical chains, believing that collaboration between the Mexican government and the private sector could help overcome some current challenges. The white paper addresses matters ranging from storage options to distribution lines.

“In terms of geography, Mexico has an extension of almost two million m2. Despite that, transportation lines are well developed and logistics of transportation should not be a challenge for e-commerce. However, it is not the same thing to deliver to Condesa in Mexico City, than Jicotlan, a small town in Oaxaca,” the report reads. Expanding distribution lines is important in terms of logistics. AMVO’s white paper offers different strategies to overcome challenges in the industry, which include the following:

• Infrastructure developments that enable growth and capillarity in logistic chains
• Availability of alternative transportation methods
• Increased security and coverage for remote or highly dangerous locations
• Incentives to increase the availability of shipping options and final client delivery at a competitive price
• Increased trust in the delivery process

This month, AMVO released a study on the logistical indicators of e-commerce in Mexico to explain what are the main logistical challenges sellers have in Mexico, the kind of operation centers that they have and the number of orders they dispatch. The study, made with data from an online survey among 78 AMVO-affiliated companies, offers insight into the industry, which was catapulted because of the COVID-19 pandemic.

The study highlights that most companies face the following challenges when selling through digital chains: high shipping costs, damage to products and errors made when submitting the delivery address by consumers. Most returns are made by customers who complain about product damage, caused by product mishandling during the shipping process. T21 analyzed the study and highlights different measures companies took to overcome some of these challenges, particularly in communicating with the consumer.

Meanwhile, companies have implemented measures that aim to create better contact with the client, such as personalized notifications via phone or email. AMVO highlights that the Mexican industry needs to keep updating to overcome newer challenges and find greater opportunities.