Strategic Partnerships and Innovation in Logistics

Q: How does Go Global customize its logistics services to meet the unique needs of clients across various industries?

A: We specialize in the automotive and appliance industries. Our journey began with appliances, working with companies like General Electric and Mabe, however, we now have over 250 worldwide clients, all from different industries and from countries such as Japan, Korea, Taiwan, USA, China, Canada, Brazil, Colombia, Italy, France, Spain, etc. Our strategy involves being located within 2km of our clients' plants to provide tailored services, such as last-mile delivery, door-to-door services, storage, and cross-docking, ensuring security in the production line.

We started 20 years ago in San Luis Potosi and expanded to Celaya, Guanajuato; Queretaro, Queretaro; Saltillo, and Monterrey, Nuevo Leon. Our goal is to act as an extension of our customers by delivering products directly to their final destinations and offering additional support services. Our primary clients are suppliers, not end users, and we assist them in establishing and growing their businesses in Mexico. We focus on integrating into our clients' processes, including addressing quality issues, developing and designing parts, and ensuring supplier approval. By offering comprehensive services, we help our clients feel comfortable and supported in Mexico. 

Q: How does Go Global Trading assist foreign companies in entering and establishing their presence in new markets?

A: Go Global Trading started as a supplier representative. We now have offices in China, Korea, Taiwan, and Japan. We helped customers find, source, and bring special parts to Mexico. As demand grew, we established our own warehouses instead of contracting with big companies. We work closely with suppliers, assisting them in setting up inventory and expanding their business. For companies with enough volume, we help them establish plants in Mexico to supply both Mexico and the United States.

We adopt a collaborative service mindset, acting as partners and extensions of our customers in Mexico. We focus on Tier 2 and Tier 3 suppliers, which often lack the resources to establish their own offices. Our main focus is on foreign suppliers who need services in Mexico but lack the financial capabilities or prefer not to work with large companies. We provide tailored support to meet their specific needs.

Q: Which of your services are in higher demand as a result of nearshoring?

A: Our warehousing services are the most demanded due to nearshoring. While nearshoring often focuses on big companies and their suppliers, we target small and medium suppliers who lack capabilities in Mexico. This is crucial because Mexico does not produce many components like plastics, electronics, and special steels, which need to be imported.

In the appliance and automotive sectors, by supplying one company, one can often supply many, as they share common needs. We aim to help suppliers establish inventory in Mexico to respond quickly to demand changes. The COVID-19 pandemic highlighted the importance of having sufficient inventory to handle logistics disruptions, such as port issues and container shortages. Maintaining optimal inventory levels is now more critical than ever.

Q: How do your warehousing services minimize storage time and enhance supply chain efficiency?

A: We leverage technology to optimize our warehousing services. We are partnering with a company called MINE KPI’S to implement an IoT warehouse management system (WMS), which includes intelligent GPS-enabled labels to track materials within the warehouse. Mine KPIs is a leading Latin American (LATAM) Data Science and Advanced Software company focused on changing the way companies manage their operations. This innovative technology allows us to store different materials without needing designated spaces for each product. This system provides flexibility to adapt to changes in demand, volume, and inventory levels. By maximizing our storage capabilities and improving accuracy, we deliver better, more efficient services and enhance supply chain efficiency.

Q: What strategies has Go Global developed to manage supply chain disruptions, such as port congestion and transportation delays?

A: We keep close to both producers and end customers, primarily in the US AND  ASIA to quickly respond to their needs. Many factors are beyond our control, such as political, economic, and climate changes, so we emphasize strong partnerships and teamwork with customers to find the best solutions. We prioritize proactive and clear communication. If there is a potential issue, we inform our clients immediately to collaboratively address the problem. This approach helps us manage disruptions effectively and maintain supply chain efficiency.

Q: What partnerships is Go Global seeking to expand its reach and enhance service offerings?

A: As a small to medium-sized company, growth and service quality hinge on finding strong partners. We seek partnerships where both parties contribute effectively to the process. We are collaborating with a technology company to improve our warehousing services, enabling us to anticipate demand and foresee changes. We started a partnership with a Chinese logistics company called Supplywise Logistics to bring in more suppliers, due to a successful relationship with them, we created a joint venture called YG Worldwide. This Joint Venture will help us expand our customer base in Mexico and facilitate delivery to the United States. Our goal is to solidify these partnerships over the next two years.

Q: What are the biggest challenges Go Global faces and how are you addressing them?

A: Our biggest challenges include fake news, miscommunication, and financial constraints. For Mexican companies, securing financing from banks is difficult. We aim to improve communication and build trust in the Mexican financial sector, emphasizing that Mexican companies can deliver high-quality services.

Potential investors often have concerns about energy, water, and state-provided benefits. They expect incentives like free land or labor, which are not typically available in Mexico. We address these concerns by focusing on our flexible, asset-light model. We rent spaces as needed to adapt quickly to changes, emphasizing our customer service orientation.

Q: What are Go Global's expectations for the future of the logistics industry?

A: We are considering whether to shift our business model to include owning our own buildings. We see a key opportunity in Celaya, which has a 15,000m² space available and close to a planned interport. By developing operations there, we can capitalize on the area's untapped potential before others arrive.

Our strategy includes extending our capabilities and incorporating technology, assembly, and production services. We plan to remain flexible and adapt per project rather than making sweeping changes across the company. This approach will help us stay agile and responsive to industry developments.

Q: What are Go Global’s growth plans for the short, medium, and long term? What key initiatives and investments will the company launch?

A: In the short term, we aim to stabilize our rapid growth, as we grew by 25% over the past two to three years. We also plan to enhance our last-mile services, ensuring just-in-time deliveries every two hours to various plants. 

In the medium term, we aim to become a 4PL logistics company. To do this, we will focus on finalizing our partnerships with the technology company and our joint venture with the Chinese logistics company. These collaborations will help us expand our service offerings and improve efficiency. 

In the long term, we will evaluate the possibility of owning our own buildings and further expanding our operations in untapped areas like Celaya. We also remain with the objective of one day becoming a 5PL logistics company. Our approach will remain flexible, adapting to project-specific needs to sustain growth and innovation. 

Go Global, founded 20 years ago, is a supply chain management that offers warehousing and distribution services for automotive and appliance companies.