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Reliable Partners Needed to Face Mexico's Logistics Challenges

Justin Facey - KENSA Logistics
CEO

STORY INLINE POST

Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Mon, 08/05/2024 - 12:49

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Q: What were the reasons behind your decision to open new offices in Guadalajara, Jalisco, and how do they enhance customer service?
A: This approach allows us to offer clients a better service. As planned, we now have six offices in Mexico. Our success is due to our focus on being closer to the client. By decentralizing operations and administration, we can now attend to clients in person. For example, if a client in Guadalajara has a need or question, we can quickly address it. Although the need for physical documents is decreasing due to digital processes, having a local presence allows us to promptly assist clients with any inquiries or requirements, offering our distinctive boutique service. 

Another goal we achieved this year was completing the acquisition of car carriers, which have enhanced the service we give to the automotive industry. 

Q: What have been the main changes after the military assumed control of Mexican customs?
A: Change is often met with resistance but, eventually, everything settles into place. Challenges persist, particularly with customs restrictions, port issues, and logistical constraints. Logistics in Mexico is complicated by port congestion, inadequate infrastructure, and complex customs processes. These issues contribute to high costs. Some terminals recently announced tariff increases, exacerbating client dissatisfaction with expensive service. Ideally, high prices would be offset by excellent service, but Mexico faces high costs coupled with less-than-satisfactory service.

Q: How are you incorporating technology into your operations and training to streamline your processes? 
A: Since its inception, KENSA Logistics has focused on implementing state-of-the-art IT systems to enhance efficiency and control operations, allowing employees to provide a boutique service. Our competitive edge lies in our sophisticated IT infrastructure, which supports real-time updates from shipping lines, airlines, and transporters, enabling us to offer accurate and timely information to clients about their shipments.

AI has been essential in maintaining high-quality data. We are meticulous about the input to ensure that the information we provide is accurate. AI helps us improve internal operations, but our goal is to use it to enhance, not replace, direct customer service.

Q: What is KENSA Logistics’s approach to sustainability and what initiatives is the company deploying in the area? 
A: KENSA Logistics has been committed to sustainability since the start and was a pioneer in offering carbon measurement services in Mexico. As the saying goes, "What is not measured, cannot be improved." We started by providing clients with carbon footprint data, allowing them to see how different routes or airlines affect their emissions.

We offer information on route optimization and alternatives to help clients reduce their carbon impact. As one of the founding members of EcoNetwork in Mexico, we continue to be a leading provider of this service. While not mandatory for all companies, it is increasingly sought after by firms in the European Union. We also measure our own carbon footprint to ensure sustainability within our operations.

Q: What steps should the government take to maximize the benefits that nearshoring offers to the Mexican economy?
A: Nearshoring relies on several key factors, with logistics being fundamental. Effective logistics is crucial for clients to transport their machinery and products to Mexico. Infrastructure also plays a vital role, and there are notable deficiencies in port facilities and road networks.

Security is also a significant concern, as many clients face challenges. While nearshoring has gained popularity due to US tariffs on Chinese products, it is important to address issues such as energy availability, water supply, security, and infrastructure. Without these, any potential benefits of nearshoring in Mexico could be diminished.

Q: How does KENSA Logistics help SMEs by improving their logistics operations? 
A: KENSA Logistics serves all types of clients, which is a key advantage over our competitors. We provide comprehensive support throughout the transportation process and beyond. This includes ensuring clients comply with regulations, such as NOMs, and understanding requirements for importing or exporting, including packaging, labeling, and commercial information.

Whether a client is small or large, KENSA Logistics offers essential guidance and expertise on international and domestic logistics. We help address regulatory and logistical challenges, providing valuable support for clients of all sizes.

Q: What are KENSA Logistics’s overall plans for the remainder of 2024 and 2025? 
A: We continue to focus on expanding our services and improving our systems, particularly with more AI applications  and new offerings tailored to different sectors. We are heavily invested in the automotive sector, handling both finished cars and parts, which require distinct logistics.

For finished automobiles, international transportation methods vary, and distribution within Mexico remains a challenge. KENSA Logistics has made significant investments in transportation equipment for nationwide car distribution, covering various brands. We plan to expand in this area, providing the necessary services for the automotive sector, known for its specific and high demands. We also manage the distribution of cars for both retail and export, as well as reverse logistics when cars are delivered for sale or collected for export.
 

 

KENSA Logistics is a solutions provider serving the energy, oversize, overweight loads, automotive, construction, hospitality, perishables, and retail industries, among others. It has wide experience in dealing with customs, transport, and sustainable operations.   

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