Transforming the Supply Chain Through Innovation

Mexico’s economic landscape calls for efficient logistics, which can be achieved by adopting emerging technologies and investing in infrastructure, agreed experts during an event organized by the #SoyLogístico Association.

“Improving infrastructure will be crucial for enhancing international logistics by two or three points,” said David Martínez, General Director, #SoyLogístico Association, during the event. 

Logistics has solidified its role as the backbone of all businesses, crucial for efficiency and competitiveness in an increasingly globalized and demanding market. Investment and innovation in logistics processes are essential. Some companies are even investing in advanced technologies to automate their operations. This transformation has resulted in more efficient, secure, precise, flexible, and faster supply chains, with greater transparency and visibility. However, adopting these technologies involves a significant learning curve.

During the event, Francisco Giral, Founding Partner, Netlogistik, highlighted that the supply chain is divided into six logistical functions: procurement, production, storage, transportation, domestic trade, and point of sale. These functions must always align with the business strategy and its needs, he added.

Demand volatility, security, and infrastructure are the main challenges in the supply chain, found a report by Deloitte. According to ConaLog’s “Logistics Performance Indicators in the Consumer Goods Industry” report, the biggest obstacles to business objectives were the economy, security, and infrastructure. Supply chains must be agile and flexible to face these challenges and meet increasing consumer demands.

This can be done by adopting emerging technologies, which are vital for analyzing and continuously improving the supply chain. Logistics expert Francisco Estrada said during the event that digital twins and big data can be used to predict events and efficiently meet demand. Precise supplier selection and understanding economies of scale, product elasticity, and cost reduction are crucial. 

Planning is essential to prepare for challenges. Three-to-five-year strategies are essential to strengthen business growth, says Marcos Tirado, Financial Director, Grupo Pinturerias. 

As Mexico prepares to receive a new government administration, the logistics sector calls for infrastructure investments that strengthen logistics. 

“With the new government, we hope to modernize ports and, if we are fortunate, demilitarize customs because they are not efficient as they were. Additionally, the growing number of blockades is a concern. If the government addresses this and ensures blockades are shorter, it will help people. Another very important point is transportation theft, which is difficult to tackle because it involves local, federal, and state authorities," says Martínez to MBN.