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Home Automotive

Automotive Logistics in Mexico Accelerates: Adaptations and Challenges in Times of Transformation

Industry leaders prepare for a shift towards faster and more flexible logistics networks.

T21 Media by T21 Media
14 November, 2024
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Automotive sector leaders discussed the changes that the logistics of the automotive industry in Mexico are undergoing, given the entry of new manufacturers and the redesign of distribution routes, both nationally and internationally, with a focus on how to respond quickly and efficiently to growing demand.

In this regard, the specialists agreed that the industry requires a comprehensive rethinking , in which flexibility, effective communication and the integration of new technologies play a fundamental role.

In this way, within the framework of the 10th edition of Automotive Logistics & Supply Chain Mexico , Roberto Zavala, Vice President of Operations in Mexico for Wallenius Wilhelmsen , highlighted that one of the main changes in the industry is the transition from centralized networks to decentralized networks , which allows for better adaptation to fluctuations in demand and the distribution of risks.

Zavala explained that this reconfiguration of the logistics network is essential to respond to the growing volumes of vehicles entering and leaving Mexico.

He also stressed the need to be prepared to face possible crises in the coming years, since having diversified options gives the industry greater resilience.

For his part, Carlos Eudave, Senior Manager of Vehicle Logistics at Nissan Mexicana , highlighted the importance of having dedicated logistics services that provide greater security and control in the flow of vehicles , especially in the context of fluctuating production volumes.

“These types of services allow companies to protect their business and optimize resources,” said Eudave.

However, it acknowledges that the implementation of these services requires careful evaluation to ensure that cost competitiveness is maintained.

Eudave also mentioned that this strategy allows the company to have greater adaptability to unexpected changes in demand.

Kaizad Dalal, head of automotive at Maersk Mexico , discussed the innovative use of containers in vehicle transport as a response to the disruptions that have affected the sector.

“Although containers were a temporary measure, they are now emerging as a permanent solution that coexists with other methods of transport,” Dalal explained.

In addition, Hector Martinez, head of the Export Sales and Logistics Department CBU at Honda de Mexico , added that effective communication with suppliers and shipping companies is crucial to avoid delays and maintain the flow of products.

“Clear communication is essential to ensure that everyone is aligned and corrective action is taken in a timely manner,” Martinez said.

He also stressed that establishing weekly communication with logistics partners allows Honda to quickly adapt to changes in the supply chain and resolve problems before they significantly affect the distribution flow.

Experts agreed that the lack of adequate infrastructure remains one of the main obstacles to optimizing automotive logistics in Mexico.

According to them, currently, many port facilities and logistics centres do not have the capacity to handle the volume of vehicles required by the market, which limits growth potential.

However, to alleviate this situation, some companies are exploring the development of new facilities specialized in vehicle handling and the expansion of connection points in strategic cities such as Monterrey and Mexico City.

On another note, the impact of recent changes in Mexican labor legislation was also a relevant topic on the panel. Roberto Zavala commented that the implementation of new regulations generates additional pressures on the industry, which forces companies to rethink their staff retention and recruitment strategies.

According to Zavala, maintaining a trained and stable workforce becomes essential to ensure the continuity of operations, especially in an environment where efficiency and speed in the supply chain are critical.

This, according to Wallenius Wilhelmsen vice president, requires significant investment in training and a focus on employee well-being to keep employees engaged.

Technology is also emerging as a key ally in meeting these challenges. The panellists highlighted that the implementation of digital and artificial intelligence solutions in automotive logistics systems allows not only for better vehicle tracking, but also for optimising decision-making processes.

“Access to quality data is invaluable for managing efficient logistics and anticipating disruptions before they occur,” Dalal added.

Finally, the specialists agreed that the future of automotive logistics in Mexico depends on the sector’s ability to be more agile and adaptable to market changes. Collaboration between different actors in the chain, such as manufacturers, logistics providers and authorities, will allow responding to the demands of a sector in constant evolution.

“It is vital that all those involved work together, establishing clear trade agreements and protocols that allow for rapid adaptation to market needs,” concluded Héctor Martínez.

Panellists anticipated that next year will be marked by greater stability, although they stressed that contingency preparedness will be a decisive factor in remaining competitive.

Comment and follow us on X:  @karinaquintero / @GrupoT21

Tags: AUTOMOTIVE LOGISTICS & SUPPLY CHAIN IN MEXICOHONDA OF MEXICOMAERSK MEXICONissan MexicanaWallenius Wilhelmsen

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índice de Confianza del Transporte y Logística – Cuarto trimestre 2023 10 destinos de exportación de vehículos pesados 2023 Descubre el Top 10 de destinos de exportación de vehículos pesados en México en 2023 La venta de vehículos pesados rompe récord en 2023 5 marcas de camiones más vendidas