Empire National Adapting to Just-in-Time Needs
STORY INLINE POST
Q: What was Empire National’s process to begin operating in Mexico?
A: The company started operations in Mexico with two main divisions. The first manages small units called “SprinterVans” for the US Market,which are capable of carrying up to four pallets. The main advantage is the speed because expedited loads are urgent, primarily serving the automotive sector. These urgent deliveries are crucial for Just-in-Time operations, where even a delay of 10 minutes could cause a production line to stop. Expedited units that are not classified as cargo vehicles rather than heavy freight trucks have more flexibility in terms of driving hours and mileage restrictions within the US.
Our other department focuses on identifying import and export opportunities between the north and northeastern regions of Mexico and in the US. We identified a significant opportunity during the pandemic for expedited shipments in Mexico due to the reduced availability of dry van trailers and truck drivers. Companies increasingly preferred expedited services and, to meet this demand, we strategically redirected our fleet, by that time, of 300 sprints from the US to serve Mexican clients.
Q: From Empire National’s perspective, what are the Mexican supply chain's main weaknesses? How do these influence your US and Mexican operations?
A: The Mexican market is still reluctant to adopt technology. Many Mexican businesses prefer face-to-face interactions and manual processes rather than using platforms to book or post available loads and manage documentation. As a company involved in both markets, we strive to adopt the best practices from the US, adapt them to the Mexican market and the same way around.
Technology is crucial in this business, particularly when it comes to communication. It becomes even more critical when we are dealing with many parties, such as truck drivers, customers and suppliers. As a transport company, we need to maintain effective communication with all parties to ensure smooth operations.
In the US, everything is interconnected, so we can access various platforms to see stats and scores using an identification number. This allows us to see how many times drivers, trucks or carriers have been stopped in a month, their accident history, any fines they may have and more. These insights serve as our initial filter to prevent potential problems.
We rely heavily on GPS tracking, which is essential both in Mexico and the US. In Mexico, we ensure that the drivers we work with have their equipment monitored. In the US, we have more flexibility, as we can use various applications to track drivers' cellphones. We send them a link through an SMS code from our system and once they accept it, we can track them instantly. This tool greatly expedites our operations.
Q: How do security conditions influence your operations in Mexico? What hotspots do you identify in this regard?
A: Insecurity is a significant issue that can limits and hinders operations. We have to be prepared to handle and react to such situations, which is something we constantly train our team for.
I see two security concerns. One is the theft of merchandise, either through deception or other means, and the other is related to drug trafficking and the overall insecurity throughout the Mexican country. For instance, in the central part of the country, extortion and scammers are prevalent. To address these issues, we implement filters to verify the companies we work with and avoid potential risks. Insecurity is particularly prominent in some border areas. Because of this, around 80% of freight movements are conducted through Laredo, Texas, as it is way safer.
Q: How is the company preparing for the increased demand for logistics services due to nearshoring?
A: Investments always lead to more job opportunities. Although there is some concern about the impact of artificial intelligence and automation on employment, I do not see significant changes in the logistics sector, especially here in Mexico. Companies like Tesla may heavily automate their operations, resulting in fewer workers but, when it comes to logistics, I do not foresee a widespread replacement of human operators or operations workforce. In fact, I believe that investments in automation will have a positive impact, creating more job opportunities and boosting the country's economy. The logistics sector will continue to thrive, offering lucrative prospects for growth and employment, without significant disruptions from technology-driven changes.
As a relatively young company, we are in a growth phase where we constantly strive to improve. Each new business or project presents different challenges and we are actively seeking opportunities with more demanding clients who require specific parameters and specifications for their projects. We often learn through experience, although we try to minimize this by seeking guidance from experienced consultants who can help us save time and avoid unnecessary mistakes. However, a significant part of our approach is taking the leap, facing challenges head-on and finding solutions. Each successful resolution becomes a precedent that we can adapt to our processes for future endeavors.
We have been moving freight for automotive companies like Toyota, KIA and Nissan, which have stringent timelines and requirements. By meeting and adapting to our clients' needs, we continue to improve our processes and aim to incorporate the knowledge gained from each experience into our future endeavors.
Q: What are the company’s plans for the mid and long term?
A: We plan to open an office in August 2023 in Queretaro, an important industrial hub in Mexico. This office will be part of the network we have been building over the years, which now comprises one office in Ukraine, one in Poland and another two in the US.
Our vision is to expand to Guadalajara and to enter other Latin American countries in the future. We will maintain our youthful spirit and the core values that we have held since the company's beginning. Our team shares the same mindset of constant improvement and growth.
Empire National is a US-based logistics company with more than six years of experience. It offers land, sea and air freight services and has eight offices in Mexico, the US and Eastern Europe.






By Fernando Mares | Journalist & Industry Analyst -
Mon, 07/31/2023 - 11:19









