Innershoring: An Emerging Trend That Strives for Self-Sufficiency

Q: What market gaps led to the creation of Grupo Zeit, and how has your approach evolved in response to market needs? 

A: Grupo Zeit, founded in 2018, started as a traditional freight forwarder. To stand out in a competitive market, we chose to specialize in the automotive industry. Instead of offering general logistics services, we focused on deeply understanding the automotive supply chain, from Tier 1 suppliers to OEMs, designing tailored logistics solutions that address specific challenges.

We continuously train our team to ensure timely deliveries, considering key factors such as costs, urgent timelines, and proper transport conditions. This has allowed us to develop efficient routes and enhance service quality. We are members of Mexico’s leading automotive clusters, which enables us to connect with the industry and create more effective solutions. Beyond logistics, we immerse ourselves in our clients’ production processes, visiting plants and participating in training programs to optimize our services.

We own transportation equipment, warehouses at the border, and an expanding IMMEX warehouse for foreign trade, which has been crucial to our growth. Our strategy has been to specialize and deliver real value to the automotive industry, ensuring more efficient and strategic logistics operations.

Q: How do you respond to unforeseen disruptions during transit, especially for time-sensitive shipments?

A: Given the urgency of time-sensitive shipments, especially in the automotive industry, we first analyze the operation in detail. Often, the initial data provided is insufficient, so we dig deeper to determine the best transport options, transit times, and potential risks. For example, we avoid flights with connections due to the increased risk of delays. Our priority is always ensuring timely delivery through a thorough route analysis while minimizing any possible risks.

Q: How does Grupo Zeit leverage data analytics and customer insights to create tailored logistics strategies? 

A: At Grupo Zeit, each client has a dedicated account leader who serves as the single point of contact for all logistics operations — whether land, air, or sea. This ensures seamless communication and accountability. We identified inefficiencies in traditional 3PL structures, where multiple intermediaries complicate processes. By making a person responsible for each account, we streamline operations and enhance visibility. This leader, supported by a traffic team and technological tools, ensures full oversight of shipments, minimizing delays and improving efficiency.

Q: Which transportation segments and routes have demonstrated the highest growth, and what factors have driven this trend? 

A: Maritime and land transport have seen the highest growth, especially in US operations due to high volume and long-term planning. Air transport is the least preferred in the automotive industry because of its high costs, but it becomes essential for urgent shipments. While air freight is used as a last resort, most operations rely on sea and land logistics.

For exports, the Mexico-US land route is the most popular, used by 80% of Mexico’s exports — mainly from the automotive industry — going to the United States. This key trade corridor is driven by supply chain dependencies and industry demand.

Q: How do you navigate the challenges of border congestion while ensuring efficient and secure cross-border operations?

A: Logistics is constantly evolving. Previously, companies stored goods at the border before last-mile delivery, but due to added costs, they now optimize shipments and send direct loads, reducing storage needs but increasing border congestion. Peak seasons also create bottlenecks, but border operations are generally smoother than seaports like Manzanillo. Grupo Zeit uses Nuevo Laredo for 98% of its border crossings, with minimal traffic in Tijuana, Colombia, and Reynosa. However, infrastructure investments will not drive growth unless security improves along key trade routes.

Q: What strategic advantages does the company gain from its alliance with FERROMEX, and how do you integrate its services into your broader supply chain model? 

A: The partnership with FERROMEX enhances supply chain resilience by reducing reliance on subcontracting, allowing us to improve services while cutting costs and transportation times. By working directly with FERROMEX, we improve transportation efficiency, particularly for high-volume shipments. This multimodal approach offers a 20% cost reduction compared to road transport and enhances security. It is an ideal solution for non-urgent, large-volume freight. Additionally, our alliance with APM Terminals at Lazaro Cardenas ensures priority handling for automotive shipments, complementing our strategy of diversifying routes and optimizing resources.

Q: What shifts have you identified in Mexico’s supply chains, and how are they expected to evolve in the long term?

A: The logistics and trade sectors are facing uncertainty, particularly regarding tariffs. Global economies like the European Union and the United States are redefining supply chain structures, impacting how companies operate. A key emerging trend is innershoring, which focuses on strengthening local SMEs for raw material production. This strategy aims to reduce dependency on imports, lower logistics costs, and counterbalance rising tariff expenses.

To succeed, businesses need skilled personnel and structured growth. Many SMEs produce high-quality goods but lack the capacity for large-scale commercialization. The Mexican government is supporting this shift through incentives, helping the country remain competitive despite tariff increases.

Unlike nearshoring, which depends on foreign investments, innershoring builds self-sufficiency. While this transformation will not happen overnight, industry leaders and organizations like the National Autoparts Industry (INA), private companies and different government programs are already pushing companies to adopt this approach. The challenge now is ensuring Mexican suppliers are prepared to meet industry demands.

Q: What challenges and opportunities do you identify in the relationship between Asia and Mexico?

A: Asia has shown an impressive recovery after the pandemic, and Mexico can learn from its strategic vision. Instead of seeing it as a threat, we should look for alliances that strengthen our market. Mexico remains an attractive destination for global investments, including from Asia, due to its strategic position. While it is essential to boost domestic production, we should also seize collaboration opportunities in sectors like automotive, where China’s presence is significant.

Q: How do you envision the future of the logistics industry, and what strategic initiatives is Grupo Zeit implementing to capitalize on emerging opportunities? 

A: The future of logistics in Mexico looks promising, especially with trends like innershoring. Mexico’s wealth of talent and skilled labor, combined with growing government support, positions the country well. However, a shift in mindset is necessary to move away from dependency on foreign markets and embrace local solutions. Grupo Zeit is actively fostering change within the automotive industry by encouraging collaborations with Mexican companies, despite challenges from foreign leadership.

As the new president of CENCOMEX for the Bajio region, I am working to enhance expertise in foreign trade and customs compliance. CENCOMEX provides essential training in compliance, IMMEX, and the USMCA, which is crucial for adapting to new trade regulations, like the 65% regional content requirement. We are equipping our team and partners to ensure resilience across the supply chain, supporting both automotive and other sectors in meeting these new demands.

Q: What are Grupo Zeit’s key goals and expectations for this year, and what specific milestones or achievements would define success for the company? 

A: Grupo Zeit’s main goal for 2025 is to adapt to market changes by having a proactive approach, focusing on strategic solutions rather than waiting for external direction. Success will be defined by how well we prepare for future challenges, using our data and insights to stay ahead of industry trends. We are committed to offering optimized solutions to our clients’ supply chains, rather than just addressing problems.

To achieve this, we are constantly improving our capabilities and investing in team development. Key to our success is building the right relationships to ensure we have the right people in place to drive our strategies forward. Our success will be measured by our ability to stay ahead of the curve, offering efficient solutions that meet the evolving needs of our clients.

Grupo Zeit is a Mexican company with global coverage that specializes in logistics and supply chain with a focus on the automotive industry. It offers tailor-made solutions to customers by adapting to their supply chain.