Market Niches Create Opportunity for Logistics OperatorBy Jan Hogewoning | Wed, 06/10/2020 - 09:52
Q: In which market niches has Kundiso Red Logística (Kundiso) positioned as a leading player?
A: There are three market niches in which Kundiso is positioned as a leader. The first is with clients that are deemed too small for large logistics companies and that lack volume. We do not believe there are small businesses and we are proud to say that several of these small companies have grown and we became a sort of commercial partner to them, even taking joint risks. This is one of our key differentiators, we share risks with our clients and our competitors are sometimes unwilling to do that.
Another niche in which we have a strong participation is the wine segment. In the past 10 years, the Mexican wine market has boomed. As a result, we decided to specialize in wine management, imports, permits and more.
The third niche is with large and consolidated industries that have problems that traditional logistics companies cannot solve. For instance, we have large clients whose distribution network is managed by players like DHL. Every now and then they have specific logistics emergencies and these large companies cannot help them. In some cases, they have to send products to remote locations that are difficult to reach by large logistics companies that already have established routes. Since Kundiso is member of the International Federation of Freight Forwarders Association (FIATA) and Americas Alliance, we can easily contact a counterpart in other parts of the world to be able to complete the logistics chain. We have an important exports channel to Colombia and Central America.
Without minimizing volume, we prefer to focus on specialization and added value markets. We provide individualized services and we treat all our clients differently. We know them, we know what they do and with this information we offer them the best possible solution. If we are not the best option for them, we are honest and tell them so.
Q: What are the most common problems your clients face?
A: Some clients approach us because they want to begin import operations but they do not know anything about the required process. In these cases, we act as a consultant and help companies develop their operations, starting with permits and training them on how to make payments to foreign providers. Also, many small clients do not take into consideration the time it takes to complete all these processes. With larger clients, we have found that they often require services that are so exotic and out of their comfort zone that they do not know who to talk to.
Q: What is the level of digitalization in logistics and trade operations?
A: Customs in some advanced countries have the capability to implement certain technology tools, but other countries do not have access to neither the resources nor the technology. Homogenizing processes, technology and requirements is extremely hard. The other problem is that there are different actors involved in import and export processes, so putting all of them on the same page and certifying everyone is difficult.
We are seeing an increase in portability and mobile solutions. As part of this trend, Kundiso has been working to implement a new system on the cloud that allows us to be available all the time everywhere. All the trends we are seeing are related to information and real-time traceability. However, it is difficult to implement this type of technology in Mexico since implementing it demands a large investment, and most of the time is in other languages. Even, after making the investment, companies will realize that the internet services in Mexico are not efficient, which requires investing in a better internet service package, and results in more expenses.
Q: What are the challenges that Kundiso faces in Mexico in terms of infrastructure?
A: There are significant challenges in terms of security, and we have had to upgrade our systems to prevent theft. Road and railway blockades have taken a toll on our operations and increased our costs.
Q: What are Kundiso’s priorities for the next two years?
A: We want to continue focusing on our portability and mobility efforts and our business niches. We will also continue exporting to Central and South America focusing on risk prevention.
Kundiso Red Logística is a Mexican logistics provider that offers tailor-made solutions for the entire logistics chain, depending on the clients’ needs. It has over 10 years of experience as a logistics operator