Archive for Mexico

Mexico – The Land of Sunshine, Tequila, and.…Automated Warehouses?

During my discussions with warehouse automation suppliers and WMS suppliers, Mexico was frequently noted as a strong spot within an otherwise weak Latin America region. Warehouse automation vendors didn’t really point to an overarching factor driving sales to companies in Mexico. But WMS suppliers informed ARC that the WMS selling environment in Mexico remains favorable due to increased nearshoring efforts by US companies. Multinationals care more than ever about agility in their supply chain, as China’s costs increase, Mexico’s proximity is becoming more appealing. I dug further into macroeconomic reports to see if there were additional insights to be obtained. I came across the Department of Commerce 2016 Top Markets Report on the Cold Chain in Mexico. This report states that Mexico’s supermarkets have been growing at a rapid pace.

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How the Mexican Peso Is Impacting Cross-Border Transportation

The devaluation of the Mexican peso over the past two years has been rather extreme. Two years ago, one U.S. dollar was worth about 13.5 pesos, and today it’s worth about 18. As a result of this severe drop in value, U.S. goods have become very expensive for Mexicans, and Mexican goods have become cheap for Americans. In fact, many markets across the globe have become cheaper as the dollar has gotten stronger – making […]

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This Week in Logistics News (November 4-8, 2013)

Forget cloud, social, and mobile. Forget WMS and TMS. Forget BI and analytics. As was confirmed for me yet again this week at a conference, the most utilized supply chain and logistics application, the reigning champ of them all, is the Excel spreadsheet. As the saying goes, old habits die hard. In other news… JDA Software to Release Next-Generation Solution for In-Store E-Commerce Picking Operations C.H. Robinson Reports Third Quarter Results XPO Logistics Announces Third […]

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This Week in Logistics News (July 15-19, 2013)

I passed on spending $1100 to fix my car A/C, so I’ve been driving around with the windows down this summer. When you have Cuban blood, 99 degrees is nothing to complain about (although I reserve the right to change my mind). In this week’s news, new products and services and a couple of acquisitions top the list. Con-way Freight Raises the Bar on Mexico Service, Adds Door-to-Door Tracking, 24-Hour Customer Resource Center, Enhanced Web […]

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This Week in Logistics News (February 18-22, 2013)

This was school vacation week and I spent most of it either with cross country skis or ice skates on my feet, which isn’t so bad except for the fact you have to be out in the cold to ski or skate, and I’m allergic to the cold, unlike my kids who would outlast any polar bear in a blizzard. As I take a break to warm up, here’s a look at this week’s news: […]

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This Week in Logistics News (December 3-7, 2012)

I’ve been reading a lot lately about how sitting for too long isn’t healthy, and how many business professionals are now using stand up desks at work. So I decided to work standing up this week, and because stand up desks are expensive, I employed my Cuban ingenuity and built my own using an ironing board and five of my Encyclopedia Britannica books. I am happy to report that my lower back feels much better. […]

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Guest Commentary: Mexico – Manufacturing Companies Move Toward Near-Sourcing

All eyes are on Mexico as the cost of manufacturing in China rises, forcing businesses to rethink their global sourcing strategies. Companies that once flocked to China because of its massive pool of cheap labor and attractive government incentives are now finding themselves at risk of losing the advantages that brought them to China in the first place. A number of factors are to blame: a diminishing population of low-cost workers, rising production costs, and […]

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One Company’s North American Near-Shore Supply Chain

I recently had a conversation with the Director of Logistics at a US-headquartered industrial manufacturing company that has several plants in Mexico, the US, and Canada. He had several interesting things to say about his company’s regional supply chain. First, let’s talk about the basics of this integrated, regional supply chain that includes Mexico. Near-shoring in Mexico offers real labor arbitrage opportunities. In the case of this manufacturer, the cost of a fully-burdened worker in […]

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Guest Commentary: From Offshoring to Nearshoring: Understanding the Shifting Sourcing Dynamic

While Asia remains the Mecca for low-priced goods, many companies are discovering the hidden costs and risks associated with offshore manufacturing. Volatile shipping rates and capacity, uncertain forecasts, limited alternatives and overall speed-to-market needs have businesses looking for viable alternatives. Many are turning no further than our neighbor to the south – Mexico. Rising Costs, Sinking Capacity The Asian shipping market was hit hard in late 2008 and 2009 as the recession bore down on […]

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