Digitalization , technology, and infrastructure investment are essential pillars for building more resilient and dynamic supply chains in North America, specialists agreed on the panel ” Keeping Pace with Cross-Border Demands ,” within the framework of Automotive Logistics & Supply Chain.

The panel included Magdalena Pongratz, inbound planning specialist at Volkswagen de México ; Ricardo Álvarez, vice president and general manager of Supply Chain Solutions at Ryder México; and César García, sales director at Uber Freight in Mexico.

The experts agreed that close collaboration, flexibility, and the adoption of technological innovations are key factors in facing current challenges , such as bottlenecks, and anticipating obstacles that may arise in the future in supply chains.

During the discussion, it was highlighted that digitization has ceased to be a trend and has become a necessity that improves transportation processes . As an example, the Transportation Management System (TMS) was cited, along with its evolution into a data exchange tool for a key player in customer service, and Ricardo Álvarez noted his experience in developing the tool.

“We tasked our engineers with developing a new model of our TMS to be 100% applicable and to act as mediators in the process to make it applicable to everyone. So, if someone tells us we want to fail, now the public is reviewing every detail. We are becoming a technology company, and this is part of our integrated solutions,” he noted.

Meanwhile, César García emphasized that investment in technology and infrastructure is a strategic priority for addressing the industry’s challenges . He pointed out that innovation should not be seen as a problem, but rather as the solution that accelerates processes. In his experience, particularly in border regions, alternatives have been implemented to optimize cash flow and consolidate operations, in addition to the adoption of artificial intelligence (AI) in processes.

“What we need are three direct lines of management and flexible capacity solutions, because only with these can we react quickly and have the right processes in place. These are the two main characteristics for us,” he noted.

Finally, Magdalena Pongratz pointed out that transparency and open communication strengthen strategic transitions , while building a collaborative logistics ecosystem allows for raising the level of service and efficiency.

“In Mexico, it’s all about deep collaboration with our indigenous countries because we see, with all the new volume, with all the change that is happening, that we can build a resilient network that can support service providers in the long term,” he concluded.

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

El cargo Digitalization and collaboration: key elements for resilient supply chains apareció primero en T21.

SAN PEDRO GARZA GARCÍA, NL.- In recent years, the logistics sector has faced the evolution of processes , from the simple movement of goods to the integration of advanced technologies that facilitate regulatory compliance, but in the current context it is experiencing a significant transformation driven by the need to adapt to new regulatory challenges and a constantly changing economic environment.

As mentioned in the Empowering Your Foreign Trade panel at the Uber Freight Powering Intelligent Logistics Summit , historically, logistics departments have focused on the transportation of goods . However, this vision has changed and players in the sector are faced with the need to modernize their operations, which includes the incorporation of technology, the automation of processes and the use of artificial intelligence for data analysis.

“We have been hearing about the evolution of a department that was dedicated to moving things from one place to another,” said Javier Ortiz, director of the Foreign Trade and Customs Committee of Index Nacional.

In this regard, the panelists agreed that one of the most significant challenges is the increase in automated oversight by the authorities, which is expected to be a change that will create a heavy burden for companies, which will have to adjust their internal processes to comply with the new regulations.

In this regard, Daniel Rodríguez, Trade Compliance Director Mexico at Uber Freight, expressed his concern about the tendency to view the sector as a victim of regulation, which can divert attention from responsibility and effective management.

This change in perspective is crucial for import and export departments in Mexico to adapt to a scenario where compliance and inspection issues are increasingly complex.

In this regard, Eduardo Reyes Díaz Leal, director of GBI Trade & Law , stressed that the “absurd oversight” that the sector faces, instead of helping, regulation can further complicate operations , so the direction it may take is uncertain.

This uncertainty is exacerbated by growing protectionism, both nationally and internationally.

For example, the pressure of environmental regulation, such as the new carbon footprint rule in Europe, affects Mexican companies that must adapt quickly to meet the demands of the global market.

The concept of trade compliance has therefore become central to the discussion on logistics.

Daniel Rodríguez pointed out that it is vital to get involved in this issue, including the analysis of rules of origin and compliance with trade agreements .

On the other hand, efficient communication between all actors in the supply chain is essential for success, so Eduardo Reyes reiterated that it is crucial that everyone, from the CEO to the operational staff, is aligned.

This synergy allows for better anticipation of challenges and a more agile response to regulations.

In the face of these challenges, staff training and professionalization have become more crucial than ever, as has improved internal communication.

“The more efficient we are in communicating the issues we see, the better the support will be,” said Javier Ortiz.

This approach to communication allows companies to anticipate changes and adapt quickly to new market demands.

In addition, Daniel Rodríguez highlighted the importance of technology and anticipation in this new environment, emphasizing that the use of digital tools can be a determining factor in improving efficiency and compliance.

“Starting to look into studying one or two steps before I have to run my process becomes imperative to ensure a smooth operation within the supply chain,” he said.

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

El cargo Adaptation and transformation in response to new regulatory challenges apareció primero en T21.

SAN PEDRO GARZA GARCÍA, NL.- The transportation of goods in Mexico is an essential pillar of the economy, but it faces a series of complex and constantly evolving challenges, from structural problems, such as the lack of adequate infrastructure and the shortage of operators , to emerging factors, such as road safety and environmental sustainability. Logistics in the country requires comprehensive solutions that involve both private industry and authorities.

According to industry experts, the combination of transport theft, regulatory changes and political and economic uncertainty is affecting the sector’s ability to maintain efficient costs and ensure safety in its operations.

Jorge Charvel, Vice President of Operations at Uber Freight, referred to the trade balance to point out that road transport largely predominates the movement of cargo in the country , with 56% of goods moved by this means, while 26% is transported by sea and only 10% by rail.

At the Uber Freight Powering Intelligent Logistics Summit , specialists commented that one of the main obstacles to the transportation of goods in Mexico is the insecurity on the roads, an issue that affects not only transportation companies, but also operators and the total cost of logistics operations.

“Insecurity in the State of Mexico, Mexico City and the Bajío corridor has worsened, significantly affecting the movement of goods,” said Victor Salazar, Commercial Director of Trayecto .

He added that cargo thefts, mainly at night, have become an endemic problem in these areas, causing disruptions that are difficult to quantify and increasing operating costs.

He explained that this situation not only increases the cost of insurance premiums , but also represents a direct threat to the safety of drivers, who increasingly face greater risks in their work.

In response, many companies have had to invest in advanced technology to monitor their units in real time, using GPS systems, on-board cameras and early warning sensors to prevent incidents.

They have also strengthened their customer service departments to efficiently manage the prevention and follow-up of these incidents, working closely with insurers and authorities.

For her part, Cecilia Garza, Vice President of Brokerage at Uber Freight, emphasized that, although not all variables that affect transportation can be controlled, the key is prevention and strategic planning .

“Strengthening security protocols and constantly assessing the risks associated with the routes is essential to mitigate these incidents,” he said.

Garza mentioned that a crucial part of the strategy is to work together with clients to develop preventive plans , adjusting loading and unloading schedules and optimizing transport routes to avoid the highest risk areas at critical times.

He pointed out that this preventive approach also involves collaborating with authorities and security forces to obtain up-to-date information on the areas of greatest risk and to make informed decisions that minimize exposure to dangers.

At the same time, Cecilia Garza highlighted the need to create alliances with technology providers that can offer innovative solutions, such as more sophisticated tracking systems and predictive analysis to anticipate potential threats.

Another crucial aspect of freight transport in Mexico is the environmental impact generated by the extensive use of road transport.

Humberto Vargas, vice president of Union Pacific , addressed the importance of the railroad as a greener and more efficient alternative in terms of fuel consumption.

“Railways consume only a third of the fuel that road transport uses to move a ton of cargo,” he said.

In a context where sustainability has become a priority issue for many industries, rail transport represents a viable solution to reduce carbon emissions and move towards a greener economy.

Humberto Vargas also explained that Union Pacific has begun testing 100% electric and natural gas locomotives , with the aim of further reducing polluting emissions. However, he acknowledged that the challenge lies in the infrastructure needed to make this technology scalable and accessible to the sector.

“Although the initial costs are high, we believe that rail will play a key role in meeting environmental goals for 2050,” he said.

Vargas also said that the railway could alleviate some of the burden currently borne by the country’s roads, which would also contribute to reducing the deterioration of the roads and reducing traffic accidents.

But for this transition to rail to be effective, the director explained that it is necessary to improve and expand rail infrastructure throughout the country, an effort that requires collaboration between the public and private sectors.

Regarding road transport, Víctor Salazar highlighted the age of the trucking fleet in Mexico as another of the major challenges.

“The average age of tractors in the country is 20.3 years, which means that most vehicles operate with highly polluting engines,” he explained. He added that this factor not only generates environmental problems, but also affects productivity and safety on the roads, since older vehicles are more prone to mechanical failures.

Faced with this reality, some companies such as Trayecto have begun to invest in renewing their fleet with more modern and efficient units.

“At Trayecto we have acquired units with EPA 10 technology and compressed natural gas engines, which has allowed us to significantly reduce emissions of polluting gases,” said Víctor Salazar.

These investments not only help meet environmental regulations, but also improve operational efficiency and reduce long-term costs, as newer vehicles tend to require less maintenance and consume less fuel.

Comment and follow us on X: @jenna_GH_ / Sent / @GrupoT21

El cargo Security, infrastructure and demand, transport challenges in Mexico apareció primero en T21.

In an increasingly interconnected world, logistics plays a crucial role as a backbone of the economy, so smart solutions to optimize transport and cargo management are increasingly necessary.

With its strategic location and growing economy, Mexico has established itself as a key player in cross-border trade , and according to market projections, Mexico’s cargo and logistics sector is expected to grow from $128 billion in 2023 to more than $171 billion by 2029, underscoring the urgent need to adopt more efficient, technological and integrated logistics solutions that respond to current and future challenges.

In this context, Uber Freight will hold the Powering Intelligent Logistics Summit 2024 on October 22 in Monterrey, Nuevo León, an event that will be a meeting space for industry leaders, technology companies and logistics specialists , who will meet to discuss the changing landscape of cross-border logistics.

One of the key topics to be addressed during the summit is the impact of nearshoring on supply chains across North America, a trend that has gained ground, particularly in Mexico, generating a reconfiguration of supply chains, which must now be more agile, flexible and technologically advanced.

Additionally, with increased trade between Mexico, the United States, and Canada under the United States-Mexico-Canada Agreement (USMCA), cross-border logistics faces additional complexities as companies must navigate an ever-changing regulatory environment , as well as address security, capacity, and sustainability challenges.

The Powering Intelligent Logistics Summit 2024 will provide a platform for attendees to discuss emerging trends in global logistics, with keynote presentations and panel discussions, the event will address critical topics such as foreign trade, transportation, technology and innovation, and economy.

Additionally, Lior Ron , CEO of Uber Freight, will share the company’s vision for the future of cross-border logistics, while Eduardo Reyes Díaz Leal , an international trade specialist, will provide in-depth insight into the economic trends that are shaping the logistics landscape for the coming years.

Other presentations and panel discussions will address topics on foreign trade, transport security and logistics technology, with practical information on regulatory complexities, capacity optimization and centralized data management .

Uber Freight will also be one of the event’s main attractions, where it will present some of its most innovative solutions, such as its integrated transportation management system (TMS) , as well as advanced warehousing and customs clearance services, designed to improve visibility and efficiency of freight operations.

Click here for more information and registration.

Comment and follow us on X: @GrupoT21

El cargo Powering Intelligent Logistics Summit 2024: Driving cross-border logistics with Uber Freight apareció primero en T21.

Uber Freight , the cargo division of the mobility technology platform, recently detailed in its report “From the United States to Mexico: a guide to strengthening cross-border transportation,” that, although the Mexican market is on an upward trajectory, factors such as nearshoring and cargo theft require a strategic approach to ensure efficient compliance , high – quality service and cost savings.

“If your team isn’t thinking about nearshoring, you risk falling behind your competition by missing out on faster shipping, travel, and cost savings. As more companies migrate to Mexico, it is necessary to diversify transportation modes to manage increased demand and capacity crises. “Having transportation management systems (TMS) that provide real-time supply chain visibility will support operations and provide access to up-to-date information and shipment tracking data,” the document reads.

The transportation and logistics solutions provider detailed that cargo theft and fraud are also becoming more common in the United States, for example, according to information from CargoNet , theft increased more than 57% between 2022 and 2023 . “In addition to causing financial losses for carriers, increases in crime pose higher insurance policy costs,” he said.

At this point, Uber Freight recommended taking measures to combat crime, with joint strategies with transportation partners, to “ implement security procedures and keep drivers safe, for example, transporting goods only during the day at critical points of cargo theft . Additionally, it is pertinent to consider investing in TMS that provides fraud prevention technology solutions. “In addition to real-time shipment tracking to detect suspicious activity, and built-in automation to verify carriers with unique identifiers.”

During  June 2024, motor transportation theft in Mexico experienced an increase of 4.1% compared to the indicators of the same cycle in 2023; Meanwhile, when compared to the previous month, May 2024, the registration for the sixth month of the year is 4.2% lower, according to a report from   Overhaul .

Meanwhile, Mexico’s commercial exchange with the world is going from strength to strength. From January to June 2024, the value of exports (oil and non-oil) amounted to 299,387 million dollars (mdd), 2.6% higher than the same period in 2023; Of this figure, 83.81% was destined for the United States (28.70% automotive and 55.11% others), according to the report from the National Institute of Statistics and Geography (Inegi) .

In turn, the accumulated value of total imports in the first half of 2024 was 304,885 million dollars, an amount higher by 2.2% than that observed in the same period of 2023.

This year Mexico became the United States’ main trading partner, ahead of China and Canada.

Comment and follow us on X:  @GrupoT21

El cargo Nearshoring and cargo theft, critical points for cross-border transportation: Uber Freight apareció primero en T21.