Home > Mobility > Expert Contributor

Logistics: Growth Engine for the Nearshoring Era

By Francisco Ricaurte - UPS
President, UPS Latin America

STORY INLINE POST

Francisco Ricaurte By Francisco Ricaurte | President - Wed, 09/11/2024 - 14:00

share it

In today’s global landscape, Mexico's economic dynamism is marked not only by its ability to adapt to evolving international trends but also by its ability to take full advantage of them. The recent momentum gained by nearshoring — a strategic shift of manufacturing and service operations closer to end markets — is a clear example of how Mexico has positioned itself as a strategic destination for investment and production. This trend has not only redefined global supply chains but has also created a fertile environment for Mexican exports, which have reached historic levels, benefiting both producers and consumers.

They contribute to a virtuous cycle where production is incentivized, trade is energized, and ultimately, consumer welfare is enhanced. This growth in exports represents a medium- to long-term activity that requires meticulous resource planning. When managed effectively, it can lead to sustained economic growth and the creation of a more resilient economic framework.

For Mexican companies, this is a unique moment. Mexico has consolidated its position as one of the main investment destinations in the context of nearshoring, which has driven a reconfiguration of production chains at a global level. In fact, according to recent data from the Bank of Mexico, the country has become one of the three main recipients of foreign direct investment in Latin America, much of which is linked to the relocation of operations to our country.

Seizing this opportunity requires strategic vision and collaboration with partners who understand the complexities of the global environment. Today, technology plays a crucial role in this transformation. At UPS, we invest more than a billion dollars annually in technology globally. These investments are not just numbers on a balance sheet; they translate into concrete solutions that allow Mexican companies to operate more efficiently and securely.

A clear example of cutting-edge technology integration is the use of AI-enabled warehouses, which optimize every stage of the logistics process. From package sorting to inventory management, AI drives not only greater efficiency but also a level of precision that was previously unimaginable. This technology is essential for facing the challenges of global trade and ensuring that our clients’ operations remain smooth, no matter the circumstances.

Moreover, technology not only allows for greater agility but also strengthens the security of operations. In a world where speed is crucial, it is vital that companies can trust their products will reach their destination without mishaps. That’s why security must be a priority, with investments in technology that allow real-time monitoring of every stage of the logistics process. This approach reduces risks and enables proactive responses to any potential disruptions.

In order to transcend, it is essential to keep in mind the collaborations and investments not only in the present, but also to advance some steps in the chain to be prepared to face the challenges of the future and continue to permeate an industry that offers the opportunity to grow and expand in an increasingly competitive market.

Nearshoring presents an unprecedented opportunity for Mexican companies. However, fully harnessing this potential demands careful planning, investment, and continuous adaptation. At UPS, we are committed to being the partner that accompanies businesses on this journey, providing solutions that not only meet expectations but exceed them. Our goal is clear: to be better and bolder, to become the world's premier provider of package delivery and logistics solutions.
 

You May Like

Most popular

Newsletter