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Tech-Driven Innovation Underpins Supply Chain Solutions

Eduardo Haros - Racing Cargo


Adriana Alarcón By Adriana Alarcón | Journalist & Industry Analyst - Tue, 09/19/2023 - 10:30

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Q: What role have emerging technologies played in making your supply chain resilient? 

A: We have traditionally worked with numerous software solutions. About three years ago, we started a new division within Racing Cargo called Zenix, which develops our intuitive software to handle all company operations and allows us to provide transparency to our clients. A year ago, we began using this software not only in terms of track and trace but also to anticipate what will happen in the market.

Q: How does Racing Cargo's predictive software forecast various market options in the shipping industry?

A: During certain seasons, it is necessary to manage truck loads because while a lot of cargo is imported, the same amount of cargo will not necessarily be exported back. It is key to match these loads because logistics is all about the round trip. But the importing client will not necessarily be the one providing the exporting load. Often, we have to make the trip ourselves. 

Our system balances these loads in several ways to secure the return trip before we reach the destination. We used to do this manually, and occasionally we still do, but we are looking to automate this process.

Q: How does the company contribute to enhancing not only efficiency but also the overall quality of services provided to clients? 

A: Clients typically request a great deal of information about day-to-day operations. We offer personalized solutions, using technology to tailor the customer service according to the specific needs and requirements of the client. We innovate by making technology accessible to the client. Innovation is more than technology; it can be as simple as improving supply chain processes. The company has an internal innovation department that continuously generates a variety of improvement ideas for our clients. 

Q: How does Racing Cargo support the nearshoring logistics needs of its customers and have you seen a growing demand for logistics operations, particularly in the auto sector?

A: Automotive companies represent 60% of our clients. We are highly attuned to the needs of this industry. Nearshoring is becoming more prevalent and we are seeing many quotation requests to relocate plants. We have received numerous quotation requests for rigging services, which involve dismantling plants, transporting them and reassembling them at the new destination. 

In many cases, clients also want to know the best relocation option for them and we help by connecting them with the appropriate entities that can provide guidance. The company also has a department specifically dedicated to helping businesses relocate. We have partnerships with various institutions to facilitate this process.

Q: What has been your experience with the relocation to Felipe Ángeles International Airport (AIFA)?

A: We have a warehouse within the Mexico City International Airport (AICM), and now we also have a warehouse at AIFA, both of them to facilitate services for our clients. We still see less volume than we would prefer at AIFA because most of the cargo still comes in on passenger flights, which continue to arrive at AICM. We have not encountered significant issues because there is not as much volume. As long as there is no change that directs international passenger flights to AIFA, we will not see a real problem in volumes.

Q: What do you envision for the future of the logistics industry in Mexico and how will Racing Cargo play a role in shaping this future?

A: The future within Mexico looks promising. To make that future even better, we must be better prepared. We have been preparing by investing in technology for years. The better prepared we are to receive foreign investment, the more it can benefit us.

Q: As demand for space keeps growing due to nearshoring, what are Racing Cargo's plans for expanding warehouse facilities to address these needs?

A: There are many opportunities in warehousing and distribution. We are investing in these areas and in equipment. Being a freight forwarder company with assets enables us to provide a much more personalized service. In the warehousing and distribution segment, we are investing significantly in the area surrounding Laredo, Texas, to construct new warehouses. The warehouses will not replace our existing business partners because the demand is high and we also need them to succeed.

Q: Racing Cargo recently expanded into Hong Kong. What are Racing Cago's plans for further expansion and growth plans for the Latin American logistics sector?

A: Our clients are always the driving force behind our decisions. We will open Racing Cargo Italy, which we have been planning for several years, and we will continue to evaluate many other options. Sometimes, it is preferable to start from scratch depending on the specific needs of each country.

Photo by:   Racing Cargo

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