Logistics in Latin America is undergoing a transformation process in which the adoption of technology, automation, and platform integration are marking the difference between companies leading the sector and those still facing structural challenges.
This is revealed by the second edition of the State of Logistics study , prepared by SimpliRoute , which this year expanded its scope to more than 1,500 companies in the region and incorporated Brazil into its analysis.
According to Álvaro Echeverría, CEO and co-founder of SimpliRoute, this study provides a more precise understanding of the challenges facing logistics in Latin America.
“This year, we expanded the scope of the study. We added more countries, including Brazil, which has allowed us to see different challenges in the region. We also saw greater organic participation from companies, reflecting a growing interest in improving logistics,” he said in an interview with T21.
The results reveal that the sector is moving toward greater digitalization , but that key challenges remain for companies to address in order to remain competitive.
In this regard, the report shows that 84% of companies in the region have implemented or are in the process of adopting technology in their logistics operations.
Within this digital transformation, artificial intelligence (AI) has taken on a special role, with a significant increase in its implementation.
“Last year, only 34% of companies had integrated AI into some logistics process. This year, the figure rose to almost 52%, demonstrating a growing need for optimization and automation in the sector,” Echeverría explained.
This growth in technology adoption responds to the need to improve operational efficiency, reduce costs, and optimize data-driven decision-making.
Furthermore, in a context of rapidly advancing digitalization, cybersecurity has become a central concern for businesses.
The study reveals that Latin American companies are at different stages of optimizing their supply chains . 59% say their operations are continuously improving, while 87% admit they need to make changes to their logistics to become more efficient.
On the other hand, 28% acknowledge that they need a thorough review of their supply chain processes.
This overview demonstrates that, although there has been significant progress in modernizing the sector, there are still areas of opportunity that require immediate attention.
Logistics challenges in Latin America
Despite advances in digitalization, companies still face significant obstacles that affect their competitiveness. The study identified four major challenges: transportation efficiency , technology and automation , supply chain challenges due to the geopolitical context , and inventory management .
“The main challenges are divided into three broad areas. The first is developing analytical skills, which many people consider key to strengthening their teams. The second is building high-performance teams, a fundamental challenge for any organization. The third is talent acquisition, focused on attracting people with an analytical profile. Together, these three elements allow us to form teams capable of generating value through analysis and strategic decision-making,” added Álvaro Echeverría.
Key market in regional logistics
Álvaro Echeverría commented that Mexico is consolidating itself as a sophisticated market within the logistics sector, with a growing demand for analytical talent .
While in other countries the focus is on developing high-performance teams, in Mexico, data analysis skills have become the most valued skill.
“In Mexico, the main skill required continues to be data analysis. This reflects a more sophisticated market, where companies are seeking to optimize their logistics processes with accurate information and data-driven strategies,” Echeverría explained.
Furthermore, uncertainty surrounding trade relations with the United States has had a domino effect on logistics, affecting companies’ strategic decisions.
“Mexico is a key driver for the region. What happens in its economy and trade policies has a direct impact on other Latin American countries. Many companies are cautious, waiting to see how market conditions evolve,” Echeverría commented.
In this regard, the specialist noted that having this data strengthens collaboration between companies and countries in the logistics sector.
Historically, Latin America has operated with an inward-looking approach, without comparing data with other market players; however, this approach is beginning to change.
“Studies like this help companies understand whether their problems are unique to them or shared across the industry,” Echeverría said.
An example of this transformation is SimpliRoute’s partnership with the Monterrey Institute of Technology for this study, which has generated valuable information for the sector and encouraged the adoption of best practices in the region.
State of Logistics 2025 reveals that logistics in Latin America is undergoing a transformation.
“This study helps us understand where the industry is headed and what steps we need to take to improve. Logistics is a sector where many things happen at the same time, and having reliable information allows us to prioritize what’s truly important,” said Echeverría.
The full study will be presented this Wednesday at The Logistics World Summit & Expo in Mexico City.
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