SAN PEDRO GARZA GARCÍA, NL.- A small and medium-sized company (SME) does not struggle to grow in Mexico, but to survive. In the country there are just over four million economic units in this category, which are 99% of established companies and where seven out of 10 jobs are generated, according to official data.

Most new SMEs do not survive their third year of life due to the challenges of not having financing possibilities, but also due to incorrect management of their logistics activities , the lack of technological tools and infrastructure.

“It is more difficult for an SME to access international markets first because of its financial capacity and then its operational and productive capacity,” said Mauricio Medina, CEO of TIP Mexico , during his participation in ETYL 2024 , a Grupo T21 event, during the panel Logistics solutions for SMEs in the T-MEC .

He added that for the 25% of SMEs that do have access to credit, the financial costs in the country can lead to higher operating costs.

In the logistics field, companies such as Quintaesencia Logística have sought to support the SME segment with specialized services , given the knowledge that these are companies that may not be consistent in their shipments or when they need to transport their goods they are small in size.

“We realized that there were many companies that were not being served as they should be or as they demanded precisely because of their size,” said Adrián Hernández, general manager of Quintaesencia Logística, during the ETYL, who explained that in the last decade they have dedicated themselves to building networks with their transport providers such as trucking companies, maritime lines and railway companies in order to have spaces available for SMEs when they need them.

The services offered by Quintaesencia Logística also incorporate visibility and traceability of goods , since for SMEs having this often means surviving or disappearing, given that a large part of the assets that will provide liquidity to these companies once their goods are placed in the final markets can be transported in a container.

In these circumstances, logistics operators must develop operational involvement with SMEs, as well as provide flexibility, according to Adrián Hernández.

This same flexibility has led railroad companies like Canadian Pacific Kansas City (CPKC) to bring more SMEs onto the rail network, allowing them to take advantage of the connectivity it offers across all three North American countries.

“How can we bring rail to small and medium-sized businesses? The first thing is to have system capacity and we have a new service that is competing directly with trucks, it is called the MMX, which is a train that is going from San Luis Potosí to Chicago consistently in 3.8 days,” said David Eaton, commercial director of CPKC de México.

Finally, the specialists agreed that the incorporation of technology will facilitate the operations of SMEs, since they can count on reductions in storage costs, operational efficiency, inventory forecasts and improvements in production.

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El cargo Logistics and financing, among the great challenges for SMEs apareció primero en T21.

SAN PEDRO GARZA GARCÍA, NL.- The supply chain of the beer industry established in Mexico is a success story, even more so in a country that poses extensive logistical challenges for producers and their transportation providers in the search to satisfy the demand of insatiable end consumers.

A Mexican consumes on average just over 60 liters of beer annually , a market that contributes to the economy of more than five thousand farming families, but which has also become the country’s main export product in the agro-industrial sector.

In the case of Heineken , which acquired Grupo Cuauhtémoc Moctezuma in 2010, but whose history dates back to 1890, its supply chain has evolved in recent years based on the challenges that have arisen.

Its seven breweries (production centers) and a malt house in Mexico receive hundreds of tons of inputs and packaging necessary for the production of its beer catalog daily and, from there, the final product comes out (around four billion liters per year) which is stored in its 170 distribution centers in the country and exported to international markets, as well as to the 17,000 Six convenience stores , which have established themselves as one of its main sales channels in the local market, even as an essential part of its omnichannel strategy (physical and digital channel).

“Everything flows through the multimodal transport process: rail and road transport for inbound activities ; and rail, road transport and maritime transport for outbound operations ,” said David Gallardo, Director of Transport and Warehousing at Heineken Mexico, during his participation in ETYL 2024 , a Grupo T21 event, in Success Story 2: Beverage Industry .

The executive indicated that, following the acquisition of the Cuauhtémoc Moctezuma Brewery, Heineken made the decision to focus more on its core business and develop a strategy with third-party partners in its movement of inputs, packaging and final product, with whom it travels up to 120 million kilometers annually to supply the domestic and export markets.

“A large part of added value is understanding consumer habits to understand and plan the S&OP ( sales and operations planning ) process,” said Gallardo, who indicated that they currently have control over the peaks in demand that occur during the year, which allows them to have better management of their inventories.

However, the opposite happened during the COVID-19 pandemic, when this industry was not closed for the first time since the Mexican Revolution, and had to do so for two months. “They were going to put candles outside the factories so we could get going again,” Gallardo said.

Strategic third party partners

The extensive logistics needs that Heineken presents from its production and distribution activities in Mexico have been the turning point for the development of strategic third-party partners. One of them is Grupo México Transportes (GMXT) , based on its two railway companies, Ferromex and Ferrosur.

“We cover the main production areas in Mexico, where all the breweries are located,” said David Jiménez, deputy director of the Industrial Segment at GMXT, who explained that intermodal corridors have been built to support their clients, in this case the breweries, in their long-distance transports, but also in their last miles, even through transport partners.

“(We have developed) systems for securing (empty) cans to reduce damage and loss. We have innovated to load all the products onto the railway, which was previously unthinkable ,” he said.

According to Ángel Garibay, general manager of ALA Transportes , Trayecto (number 1 in the Top 100 of Auto Transport ), for a company like Heineken, with large logistical needs, involvement with its transport providers has to be at a deep level.

This has forced ALA Transportes to always seek continuous improvement and professionalization  in its services, and “understanding the model of the client’s needs.”

In this case, ALA Transportes is involved in the movement of raw materials and finished products for Heineken, which although it is not a just in time model , it is necessary to understand that each product or input requires a different specialization in the transport model and even certified operators.

“There are a significant number of configurations for these needs and once the design of the model to be worked on is in place, it requires a significant connection in technology. For Heineken, it requires real-time production or finished materials and requires a joint design to be able to achieve the service required,” said Ángel Garibay.

To provide the service to Heineken, ALA Transportes has installed a control tower from which the traceability of the movement of goods is provided, but also as a security tool for the products being transported.

“ Today the challenge in Mexico is security . Unfortunately, in this area we seek to be as dissuasive as possible. The product we transport is sensitive to rapid handling,” he said.

In the case of Ferromex, Jiménez indicated that the company invests around 40 million dollars a year in security , in response to an increase in theft and vandalism on the railway.

“We have a security intelligence area, a security control center in Guadalajara, where the intelligence and security area controls and monitors the trains. We have drones that fly from Guadalajara in case there is a community that is going to be affected by railroad robbery ,” he said.

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El cargo The sparkly and successful beer supply chain in Mexico apareció primero en T21.

SAN PEDRO GARZA GARCÍA, NL.- Within the framework of ETYL 2024 , specialists highlighted the main challenges facing the cold chain , ranging from security to the lack of trained operators, challenges that without adequate logistics can jeopardize the quality of the service.

In this regard, and during a workshop entitled Cold as added value to logistics , Alejandro Pedroza, Commercial Director of González Trucking , Gustavo Equihua, CIO of Frialsa Frigoríficos , and Adrián Sánchez Cortés, Operational Manager of Grupo Multimodal Altamira addressed crucial issues such as security, technology and sustainability in this vital sector for the transportation of perishable products.

The speakers also explained that the deterioration of infrastructure and insecurity on Mexican roads are the main challenges for the conservation of products that require strict temperature control, such as food, pharmaceuticals and chemicals.

They agreed that the main objective is to avoid loss of quality and ensure safety at every stage of logistics, from production to the point of sale.

In this context, Alejandro Pedroza pointed out that “what we sell is temperature. Our challenge is to keep it stable throughout the product’s journey.”

Pedroza also mentioned that real-time monitoring devices are essential to prevent failures in refrigeration equipment.

“We have invested in systems that allow us to monitor the boxes in real time. This not only guarantees the ideal temperature, but also helps us make quick decisions if any failure occurs,” added the Commercial Director of González Trucking.

Another of the major challenges facing the cold chain in Mexico is insecurity , since, according to Pedroza, “refrigerated products, especially meat, are very attractive to organized crime due to their high value and ease of resale.”

The loss of merchandise not only affects suppliers, but also impacts end consumers, since a break in the cold chain can compromise the quality and safety of products.

For his part, Adrián Sánchez Cortés, from Grupo Multimodal Altamira, added that one of the key factors to guarantee a successful cold chain is synergy with customers .

 “We make sure we know their needs well in order to adapt our processes. This is essential to avoid temperature drops and offer an efficient service,” explained Sánchez Cortés.

He also stressed the importance of technology in this sector, highlighting that real-time monitoring not only allows for maintaining the correct temperature, but also for reacting immediately to any unforeseen event.

The lack of well-trained operators is another challenge affecting the cold chain in Mexico. According to Pedroza, “the average age of transport operators in our country is around 54 years old, and fewer and fewer young people want to get involved in this sector due to the risks on the roads and insecurity.”

Added to this is the migration of drivers to the United States, which exacerbates the shortage of qualified labor to operate refrigerated vehicles.

“Without trained operators, maintaining cold chain efficiency is becoming increasingly difficult,” Pedroza added.

Gustavo Equihua, from Frialsa Frigoríficos, also highlighted the importance of maintaining high standards of safety and traceability in the products they handle.

“Every small change in temperature directly affects the shelf life of products. Every degree lost by a frozen food, for example, reduces its shelf life and compromises its quality when it reaches the final consumer,” Equihua explained.

This shows that the cold chain depends on efficient transport and also on rigorous control throughout the entire logistics chain.

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El cargo These are the challenges weakening the cold chain in Mexico apareció primero en T21.

SAN PEDRO GARZA GARCÍA, NL.- Infrastructure, security and regulations are the main challenges facing the freight transportation industry in Mexico, according to specialists in the transportation and insurance sector gathered at ETYL 2024 , from Grupo T21, during the workshop The Future on the Road .

In this regard, Mario Alberto Villa, Deputy Director of Risk Prevention at Quálitas , explained the main technological innovations focused on safety and accident prevention for cargo transportation and addressed both the advances in artificial intelligence and the need to improve road infrastructure.

“There are large areas where there is no coverage, which remains a challenge for satellite monitoring,” Villa said, stressing that although technologies are advancing, infrastructure still limits their effectiveness.

Villa said automation is beginning to have a significant impact on the workforce, but stressed the importance of operators.

“Today technology threatens some jobs, but there are human factors that cannot be replaced,” he said.

He also stressed that the implementation of cameras and telemetry systems can reduce accidents by monitoring drivers’ behavior in real time. However, he admitted that there are problems with the connectivity of Mexican roads.

The role of autonomous vehicles in the future of transportation in Mexico was also discussed . In this regard, Villa commented that the adoption of these trucks could take several more decades.

“In other countries they are talking about releasing the first autonomous truck in 2025, but in Mexico that scenario seems more distant,” explained the deputy director of risk prevention at Quálitas.

The workshop was attended by the active participation of the participants, who expressed their doubts about legal liability in the event of accidents with autonomous vehicles, an issue that the country’s authorities have not yet clearly defined.

The conference also highlighted that, although there has been significant progress, much remains to be done in terms of infrastructure, safety and regulation so that the transport sector can fully benefit from new technologies.

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El cargo ETYL 2024: Innovations and Challenges in Freight Transport Security in Mexico apareció primero en T21.

For the fourth consecutive time in northeastern Mexico, the ETYL (Transport and Logistics Meeting) will address the dynamics of nearshoring by exploring the logistical opportunities and challenges faced.

In two days of activities that promote networking , the creation of an agenda and the linking of various sectors , ETYL will bring together nearly panelists and speakers, in addition to more than 200 attendees from the logistics and transportation community.

The activities that begin this Wednesday, October 9, include the keynote lecture Economic and Competitive Perspectives for the Country 2024-2030 , which will be given by Carlos Elizondo Mayer-Serra.

Maite Ramos, general manager of Alstom Mexico, will be giving a conference entitled: Forging leadership and commitment in the mobility industry , where a scenario of human capital management will also be presented.

Find out the full ETYL programme by clicking here.

In addition, there will be two success stories from industries that are facing high dynamism in the economy, such as the beer industry and the automotive industry , with a particular focus on auto parts.

The programme includes four workshops where topics such as road transport safety, Asia-Pacific supply within the framework of nearshoring, e-mobility logistics and logistics solutions for SMEs will be addressed.

El cargo ETYL 2024 Kicks Off Tomorrow, Focused on Maximizing Nearshoring Opportunities apareció primero en T21.