Tech-Enabled Fleet Management: The Quest for Efficient Logistics

Mexico’s logistics landscape is at a crucial juncture as it deals with the dual challenge of enhancing its operational efficiency while curbing its environmental impact. Technology-enabled fleet management solutions emerge as key drivers in navigating these challenges, fostering resilience, agility, and sustainability within the supply chain.

Regulatory considerations are also advancing, driven by ecological awareness and efforts to reduce carbon footprints. While there's a focus on electromobility, fossil fuel consumption remains a challenge. Under these circumstances, technology and Big Data could be employed to enhance efficiency, reduce consumption, and minimize carbon footprint impact, says Jorge de Lara, Director General Fleet and Mobility, Edenred.

Fleet management solutions, empowered by technology, play a pivotal role in fortifying the supply chain against disruptions. According to CANACAR, freight transportation contributes significantly to Mexico's economy, accounting for 3.7% of the national GDP and facilitating the movement of 54% of goods by road. 

Sustainability requires digitizing processes beyond paperless solutions to address issues like empty miles that significantly contribute to diesel consumption and machine wear, says Javier Selgas, CEO and Board Member, Fr8App. Efficient fleet management systems reduce errors, centralize information, and integrate solutions for various stakeholders. Investing in talent with a technological innovation mindset is also crucial to smooth technological processes.

According to the National Inventory of Greenhouse Gas and Compound Emissions, the transportation industry's emissions surged to 147.9 million t of CO₂ equivalents in 2019, marking a 57% increase since 1990. Within this sector, the trucking industry shoulders a substantial burden, contributing 92% to these emissions.

Despite emerging technologies, challenges include ensuring real connectivity among all supply chain actors. In the European Union, traceability goes beyond cargo location to consider its environmental impact, involving global certification issues, higher penalties, and challenges to companies' competitiveness, says Karina Lerma, Vice President, SwissCham México.

A significant challenge for logistics companies comes from the persistent imbalance between product supply and demand, resulting in an uneven flow of containers across regions. This disparity leads to the accumulation of empty containers at demand centers, requiring efficient repositioning to ensure the seamless continuation of shipping activities. 

Balancing experience and adoption is crucial, as software alone cannot make decisions, says Gonzalo Gutiérrez Rangel, National Sales Manager, El Puerto de Liverpool. Empowering stakeholders is essential for streamlining the supply chain. The value of a company lies in its database, so the digital transformation is crucial, he adds. Balancing information sharing without affecting operations is challenging but essential for logistical efficiency.

Technology-enabled fleet management solutions bring unparalleled visibility and traceability to the supply chain. By leveraging data analytics and real-time tracking, these solutions enhance the monitoring of products throughout the entire supply chain. These measures are crucial not just for businesses but also for the environment, according to the National Chamber of Cargo Transportation (CANACAR).

Balancing the need for information sharing and protection is crucial, especially regarding legal matters, says Pamela Villareal, Co-Founder and CEO, OTIF. Cybersecurity and information management are major concerns for companies, says José Antonio García, Director of New Business Development, ONEST Logistics.

By integrating technology-enabled fleet management, real-time tracking, data analytics, and route optimization algorithms, companies can identify strategic opportunities for relocating empty containers, minimizing downtime and contributing to a more sustainable and resource-efficient logistics ecosystem. This technology-driven strategy aligns with sustainability, emphasizing the responsible use of resources and reducing environmental impact within the logistics industry.

The journey toward sustainability in Mexican logistics faces obstacles, ranging from high implementation costs to a lack of government support and limited infrastructure. However, the growing awareness among businesses, coupled with innovative technological solutions, provides a pathway forward. Collaboration among companies, consumers, and the government is essential to overcoming challenges and creating an environment conducive to sustainable logistics practices.

“Digitalizing the supply chain is complex, with challenges such as measuring carbon emissions and identifying the most polluting aspects for targeted solutions. Visibility is crucial for influencing the public agenda and addressing potential issues in digital and physical infrastructure in the next five years”, says Villareal.

The transportation sector could be critical for Mexico’s transition to a low-carbon economy. The country has set ambitious targets to reduce carbon emissions by 50% by 2030. This commitment underscores the importance of sustainable practices within the transportation sector, including adopting technology-enabled fleet management solutions.