Survival of the Logistically Fittest

When an ecosystem changes, everything in it is bound to adapt. The COVID-19 crisis has produced changes in all industries, leading to the rise of new logistic models. Two major companies, an e-commerce powerhouse and a logistic giant, are planning to invest in Queretaro to address the boom in online sales brought by the pandemic.

E-commerce sales have increased significantly following the COVID-19 pandemic, leading to new challenges and ways to optimize deliveries, reports T21. FedEx Express recently expressed interest in investing in Queretaro, according to T21. The logistics company announced the expansion of its current operation facility in the city, which aims to take advantage of the dynamic financial region of the Mexican Bajio. The US$3 million planned investment will allow the company to increase its capacity by around 265 percent and cover the 110 routes that go around the state. The company also signed an agreement with the government of Queretaro to support MSMEs in their logistics. Recently, FedEx announced large investments planned for the country, as reported previously by MBN.

MBN also reported on the adaptation strategy Mercado Libre, Latin America’s e-commerce giant, implemented. The strategy involves a new fleet that will represent a MX$1 billion (US$50.2 million) investment, consisting of four new airplanes that will cover four different routes in the country with a total capacity of 40 tons. Líder Empresarial mentions that Mercado Libre’s strategy, called “MeLi Air,” will allow the company to reach any place in Mexico in less than 24 hours with all planes leaving from Queretaro’s Intercontinental Airport. “We know our plane fleet cannot have a better home than Queretaro. The Mercado Libre platform will deliver in less than 24 hours, which translates to better business and more opportunities for everyone,” Omar Ramírez Reyes, Director of Mercado Deliveries, told Líder Empresarial.

For an effective logistics transformation, T21 highlights that companies must consider:

• Adopting flexible logistics solutions to inform consumers of where their orders are at all times.
• Incorporating emerging technologies, such as artificial intelligence, blockchain, robotic collaboration and automation, among others.
• Generating logistic micro-hubs as part of a new model of urban distribution.
• Using alternative vehicles and fuels to make the adaptation more sustainable for the planet.
• Managing talent to find new logistical profiles with new forms of leadership.
• Establishing collaboration between the public and private sector to find even more optimization.