Moving Cargo and Opportunities Through TechnologyWed, 05/08/2019 - 16:10
In a globalized, changing and competitive economy, technology has become an opportunity catalyst. Logistics plays a fundamental role in guaranteeing optimal relations with customers and suppliers. When logistics meets technology, distribution channels and the supply chain evolve toward new ways of moving cargo, says Eduardo Porter, CEO of Agility Logistics México. “Agility sees itself as a technology company that moves cargo and goes beyond being a traditional logistics company. Globally, Agility Logistics places great emphasis on the simplification of logistics processes through technology,” says Porter. “We want to take advantage of the facilities of electronic invoicing to be more efficient, help the environment and facilitate the work of our employees by going paperless,” he adds.
The implementation of new information and communication technologies in the traditional logistics sector is essential to manage the information flow used in such operations. However, the main areas that continue to influence the performance of the value chain are, according to the WTO, customs procedures, private sector development, business facilities, attractiveness and infrastructure. “Mexico has the necessary infrastructure to develop in the logistics sector. However, improving the conditions related to land transport, tractors with double trailers and insecurity could boost the performance of both the economy and the logistics sector,” he says.
Agility Logistics’ global headquarters is responsible for identifying market trends and the commercial approach in the countries it operates. “Agility Logistics analyzes what are the most attractive markets for the company in Mexico, which is why our focus is on the automotive and construction sectors. However, our headquarters have identified opportunities for Agility Logistics to operate in the pharmaceutical and food industries. We are leaders in perishable logistics in other parts of the world. We think we can also be competitive in Mexico,” says Porter.
Each year, Agility Logistics provides around 415,000 tons of air freight and 740,000 TEU of ocean freight and manages 2.2 million m2 of warehousing and storage in over 100 countries. “In South America, we are leaders in logistics services for the export of salmon and berries by air cargo, in Europe we are leaders in perishable products, while in India we are focused on the transport of generics for the pharmaceutical industry,” says Porter. “Overall, we are leaders in different sectors all around the world and we also want to become leaders in Mexico.”
Agility’s global experience in e-logistics benefits the supply chain of international companies but also local companies nationwide. According to the Emerging Market Logistics Index 2018 published by Agility Logistics, the growth prospects for SMEs and large companies in emerging markets are positive for the coming years, which translates into growth opportunities for the logistics sector. The report also highlights that Mexico has three major challenges to overcome to achieve a greater development of its economy: structural reforms, the change of government as well as growth of e-commerce. Mexico is a country with great commercial appeal, both for companies that seek to export to other countries and for those in the country that want to operate internationally.
“Unlike other Latin American countries like Brazil, Mexico has many facilities to perform logistics services. Mexico has the best documentation process for imports and exports in the region and has very good infrastructure,” Porter adds. For emerging economies like Mexico, the WTO recommends focusing on providing the necessary investments in basic infrastructure and its maintenance, as well as developing a broad program to promote trade.
Agility’s efforts are focused on pooling the company’s experience in other countries to better develop its services in Mexico. Agility believes the essential factor to promote this development is human talent. “The secret to being a successful logistics company in multiple sectors is partly due to technology and experience but a large part is also due to the people who work to provide these services. It is essential for Agility to have well-trained professionals who are experts in the industries we work with to continue providing the best solutions for our customers,” says Porter.