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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El cargo State of Logistics 2025, the logistics transformation apareció primero en T21.

SimpliRoute , a Chilean company specializing in logistics solutions with artificial intelligence (AI), presented its ADA AI technology. This launch, supported by ProChile, seeks to address and solve the deficiencies identified in the Mexican logistics sector , according to a joint press release. 

In this sense, ADA AI aims to optimize routes and logistics decisions through predictive analysis, allowing Mexican companies to interact with their data without requiring specialists. 

In this regard, Álvaro Echeverría, CEO of SimpliRoute, commented that AI applied to logistics not only reduces times and costs , but also allows companies to meet sustainability objectives. 

“We are looking at how companies can reduce their carbon footprint, especially in a sector where 60% of emissions come from transport operations,” said Echeverría. 

He also indicated that the idea behind this launch is to reduce delivery times by up to 35% and generate operational savings of around 30 percent. 

Likewise, and according to the statement, companies seek to use these technologies to reduce carbon emissions , in a context where transport operations generate 60% of emissions in the logistics sector. 

The collaboration between ProChile and SimpliRoute includes training programs for Mexican companies , with the goal of integrating AI into their processes in an effective and sustainable way. 

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El cargo Chilean AI arrives in Mexico to contribute to National Logistics apareció primero en T21.

The use of Artificial Intelligence (AI) can transform production and logistics in Mexico, as it will allow for improving, simplifying and optimizing processes, in order to trigger the country’s economic growth , although there are challenges to enhance this tool, such as investment, regulation and government support, considered Álvaro Echeverría, CEO of SimpliRoute , a last-mile logistics optimization platform.

The country has made progress in adopting AI in physical operations, with 50% of operations leaders indicating its widespread use in their organizations, however, the industry continues to lag behind when compared to other markets, due to the lack of a regulatory framework and greater government attention.

According to the consulting firm Mordor Intelligence , the cargo and logistics market is estimated at 136.11 billion dollars (mdd) for this year, with a growth projection of up to 171.40 billion dollars in 2029, at a compound annual rate of 4.72 percent.

He also highlighted that the growth in transportation services has strengthened the competitiveness of Mexico’s exports, which in 2022 reached 590.93 billion dollars .

Given this scenario, the challenge is to overcome some challenges, such as the lack of investment and the absence of a clear focus on the part of the government, which is why a long-term vision is required that promotes innovation and technological development in the country, with regulations that guarantee the ethical and safe use of Artificial Intelligence.

“Mexico needs a robust regulatory framework that addresses data security and privacy in order to foster trust in technology and attract investors,” Echeverría stressed, adding that “the adoption of AI can transform logistics in Mexico by improving inventory management, optimizing delivery routes and estimating sales demand.”

The SimpliRoute specialist pointed out in a statement that companies must collaborate with recognized suppliers and train their staff to counteract the risks that come with the implementation of AI, which include data security and the lack of specialized human capital .

He also indicated that the Mexican government would have to work together with local producers and manufacturers to establish a sustainable practice with the use of technology , which in addition to helping to consolidate our country as a competitive player in the context of the relocation of production lines ( nearshoring ), would allow for reducing costs and increasing efficiency.

According to a Samsara study , 94% of operations leaders believe it is necessary to invest in AI solutions to stay competitive, and 87% of organizations plan to increase their investment in AI in the next 12 months, which is crucial to meet the demands of the logistics sector .

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