Tech Fragmentation Limits Productivity in Mexican Logistics

Seventy four percent of logistics companies in Mexico face technological interconnection problems, which limits their productivity, reveals SimpliRoute's State of Logistics 2024 study. Despite investment in innovative tools, the lack of integration between systems prevents maximizing operational efficiency.

"The Mexican logistics buyer is much more likely to acquire technology than in other countries in the region. However, there has been no strategic vision on how to make these systems interact with each other," says Alvaro Echeverria, CEO, SimpliRoute.

Mexico is one of the most dynamic markets in the adoption of logistics technology in Latin America, ranking third in the region behind only Argentina and Colombia, according to the Technology Innovation Index 2024. In the logistics sector, digitization has driven the implementation of solutions such as AI, autonomous vehicles, and drones. However, the lack of interconnectivity between platforms has prevented these tools from generating a significant impact on hourly productivity.

SimpliRoute's study, based on surveys of logistics companies in the region, reveals that Mexico has a higher number of technology platforms implemented compared to other countries. However, this adoption does not translate into proportional improvements in efficiency, due to the fragmentation of systems.

The lack of interconnectivity affects data synchronization between key areas such as distribution, routing, and real-time monitoring, Echeverría tells El Economista. 

To improve productivity, Echeverría urges companies to define specific problems that can be solved with AI, develop internal capabilities in data analysis and systems integration, and establish strategic alliances to accelerate the implementation of solutions.