5 Things to Know About U.S.-Mexico Logistics

Talking Logistics

Trade flowing across the United States-Mexico border has grown exponentially since the North American Free Trade Agreement (NAFTA) was enacted in 1994. It has been further spurred by the trend of nearshoring over the last decade, as American companies have relocated their manufacturing facilities to Mexico to take advantage of a skilled workforce, improving infrastructure, and proximity to the United States. carrier tractors to a 26-kilometer zone inside the Mexico border.

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All Signs Point to Mexico Playing a Greater Role in Supply Chains

Talking Logistics

What do you think about Mexico? My short answer: What do your customers think about Mexico? For most 3PLs, their customers — across a variety of industries — are growing their presence in Mexico, either manufacturing there or growing their supplier base there, so 3PLs need to align their services and capabilities accordingly to the changing supply chain networks of their customers. Mexico mode…Freight moved by pipeline increased 11.4

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Is Mexico the World's Next Manufacturing Hub?

Elementum

Mexico may become the global manufacturing nerve center if the country plays its cards right. According to Deloitte’s 2016 Global Manufacturing Competitiveness Index, Mexico ranks number eight out of 40 countries including Canada, Sweden, and Vietnam. Deloitte has also highlighted the country as a major manufacturer of electronics parts , machinery, and appliances, among others. Mexico has its share of challenges, of course.

Questions Companies with U.S.-Mexico Trade Should be Asking

CH Robinson Transportfolio

Mexico border, his words seem unusually predictive. Specifically discussing how the internet of things will impact supply chains, he said: The internet of things provides companies the ability to source parts and inputs, and sell, globally. Consumers can now buy directly from overseas retailers and manufacturers, and with the increase in the de minimis value by Congress from $200 to $800, we increasingly see the U.S. Mexico trade risks. Nearly three years ago, C.H.

Skillfully Managing Manufacturing Reshoring Projects

Cerasis

There’s more involved in successfully reshoring a foreign manufacturing operation back to the U.S. Reshoring is a hot topic in manufacturing. These “Bring Manufacturing Back” initiatives have many moving parts and require careful planning and execution and very skillful project management. location and the best facility for manufacturing are key components to the overall success of the program. Transferring a manufacturing line from one location back to the U.S.

The Pros and Cons: International and Domestic Sourcing

Unleashed

It’s easy to oversimplify the differences between sourcing for parts locally or internationally. When considering where to purchase from, the prevailing idea seems to be that domestic sourcing allows for better control and shorter lead time, but international sourcing is more cost-effective. Let’s compare the strengths and weaknesses of both international and domestic sourcing options. International Sourcing. Reaping the benefits of international sourcing.

Bringing It All Back Home – OTR TMS Supports Reversion to Regional Manufacturing

Supply Chain Collaborator

Will the trend toward a return to “regional manufacturing” boost volumes in over the road transportation in North America as manufacturers move away from Asian overseas operations? American manufacturers are adapting to significant modulation in the nature of their supply chains as market forces and current global events promote operating “closer to home”. As a result, a new focus on network resilience and the idea of more regional manufacturing emerged.”.

Sourcing Analytics Combined with Relationship Management is Key for Automotive Suppliers

Supply Chain View from the Field

I spent some time visiting this week with Sensata in Aguascaliente Mexico. Sensata is a major manufacturer of automotive sensors, with major customers such as Continental AG, BMW, Bosch, Nissan, Caterpillar and others. At the time, Nissan had just opened a second manufacturing facility, which hired over 12,000 people. This was having a major impact on Sensata, and also suggests the increasing growth in the Mexico industrial market for manufacturing facilities.

This Week in Logistics News (May 25-29, 2015)

Talking Logistics

Robinson Celebrates 25 Years of Business in Mexico. Last November, JDA Software and IBM announced a “new integrated offering [that] will provide retailers, wholesalers and manufacturers with intelligent sourcing, fulfillment and order management capabilities.” Here are some excerpts from the press release: Nexternal provides an omni-channel commerce platform that serves manufacturers, distributors and retailers. Mexico freight totaled $45.2

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Why SMEs May Lead a Shift Away from China Sourcing

Logistics Bureau

The Coronavirus pandemic has raised concerns over China sourcing, accelerating the trend in businesses around the world seeking secondary sourcing countries. Heading the list of alternative manufacturing hubs are Vietnam, India, Thailand, and Mexico.

This Week in Logistics News (July 15-19, 2013)

Talking Logistics

Con-way Freight Raises the Bar on Mexico Service, Adds Door-to-Door Tracking, 24-Hour Customer Resource Center, Enhanced Web Tools. Con-way Freight announced this week that it has enhanced its Mexico service offering with the introduction of real-time, door-to-door online tracking, a 24-hour Customer Resource Center and new web tools for tendering and managing shipments moving to and from Mexico.

Is it Time for a Cross-Border Checkup?

CH Robinson Transportfolio

Over the last few months, I’ve spoken with many companies where Mexico is an increasingly important aspect of their supply chain. These companies typically source key components from Mexico, have increased their investments in Mexico manufacturing facilities, or sell a large percentage of their finished goods to consumers in Mexico. Growth in Mexico’s manufacturing sector.

Reshoring in America: The Future Outlook, Current Hindrances & Issues, and Ways to Stimulate Reshoring

Cerasis

manufacturing is not experiencing a “renaissance” Industry experts conservatively acknowledge that off-shoring has slowed, and perhaps “stabilized” Although around 80,000 manufacturing jobs have come back to the U.S. in the past 3 years, (about 60% from China), per research by BCG and others, there’s no indication that a great number of additional jobs will soon return from Mexico and China. Manufacturing has gained 700,000 jobs since 2010.

Reflections on Hard Hats and Safety Shoes…

Supply Chain Shaman

Manufacturing teams used to manage the supply chain group. Today, in most organizations, the supply chain team manages manufacturing. The irony is that fewer and fewer people within the supply chain team understand manufacturing. As I work with teams to envision the new tomorrow, I find fewer people know the basic concepts of manufacturing planning–cycle inventories, freeze duration, slush period, bottlenecks and constraints.

Nearshoring & Reshoring Will Continue to Increase Thanks to these Main Benefits

Cerasis

Offshoring is basically when a company moves manufacturing to a foreign country in an attempt to save money. For a time, this model of manufacturing seemed to be the paragon of effective business. It was cheaper than producing products in the US, manufacturers could produce large inventories with little capital up front, and consumers did not really have a public voice. Why Are Manufacturers Focusing on Reshoring and Nearshoring?

Outsourcing: The Good, the Bad, and the Ugly – Lessons from Nortel Networks

NC State SCRC

You didn’t have to add designers, and they leveraged the fact that they designed phones for other people, could do it quicker, and would leverage that, and would get their money back through manufacturing in a low cost environment. At the time – it was all in Taiwan, and over time it was moved more to manufacturing locations in China. ” The BAD – “Back in the 90s a lot was going to Mexico. Nortel had a plant in Calgary, that had to be moved to Mexico.

What Logistics Leaders Need to Know about the USMCA Treaty

Transplace

On July 1, 2020, the new USMCA trade treaty between the United States, Mexico, and Canada will replace the current NAFTA treaty. Trade Representative Fact Sheet , this update will provide “greater incentives to source goods and materials in the United States and North America.”. The United States imposed tariffs on Canada, Mexico, and other trading partners but the other countries would not agree to the tariffs being included in USMCA.

Blockchain in Supply Chain: 2 Ethereum-Based Projects That Demonstrate How Blockchain Can Improve Supply Chains

Cerasis

A manufacturer in China doesn’t read the specs on an order. A supplier in Mexico mixes up two similar parts. What makes Ethereum different is that it actively encourages software development teams to use its open-source protocol to design tokens that run on top of the Ethereum blockchain. Provenance ensures transparency in supply chains, with the aim of encouraging brands to source materials and labor in an ethical and fair trade manner. Supply chains are messy.

Exodus out of China gathering pace

EFT

Mexico and other Asian Low-Cost Countries (LCCs) are being considered, with operating costs being reduced by an estimated average of 23% if companies near-shore to Mexico and 24% if companies move to other LCCs according to PWC’s analysis.

Letter from the CEO: Coronavirus Market Update

Transplace

Mexico and Cross-border. into Mexico by truckload and the increase of CPG export products from Mexico to the U.S., In the short term, the market is going to demand Mexican portion peak season surcharges to bring empty equipment from other regions or the border into the Mexico shipping points. Spot market rates are increasing for freight going from Mexico to the California, Washington, and Oregon areas. Letter from the CEO: Coronavirus Market Update.

The Supply Chain of a Computer

SCM Research

What is the role of contract manufacturers? Why is packaging being done in Eastern Europe or Mexico and not in China; and why not in Northern Europe or Canada, where the consumers are located? What can be problematic about sourcing raw materials from the Congo? Sometimes a picture is worth a thousand words. In my courses, I introduce the key ideas of SCM by discussing a map of our globe. Questions we discuss include: Who is actually producing our computers?

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Keeping It Local: How Shorter Supply Chains Impact Supply Chain Planning

ToolsGroup

Manufacturing was transformed into a global enterprise. And this low cost fostered a mentality of incremental thinking with mid-level managers focused on squeezing out 1-2% a year in cost savings through sourcing, says Pete Guarraia of Bain consultancy. . The Economist says that more companies are sourcing with proximity to their major markets – for instance servicing the EU from Eastern Europe and Northern Africa or the US from Mexico.

Trump's Tariffs Anger US Manufacturers, Business Groups

Material Handling and Logistics

The Alliance of Automobile Manufacturers urged a “careful re-evaluation of these tariffs so they address legitimate concerns” without harming users of the metals. Manufacturers and business groups slammed President Donald Trump’s decision to impose tariffs on steel and aluminum imports from the European Union, Canada and Mexico, warning of promised retaliation and calling it a tax on U.S. manufacturing and its workers, the American Apparel & Footwear Association said. “To

Shortages in Medical Supplies Linked to Imports

Logistics Trends and Insights

Another idea is perhaps to identify ‘critical’ manufacturing, such as medical supplies and equipment and provide incentives to produce more within the U.S. However, surgical gowns, typically sourced from China, were at near-normal levels because the sourcing shifted to Honduras. Sourcing from alternative locations will be important as long as the countries have not been severely impacted by the pandemic.

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Supply Chain Management:Lubrication Management - An Integral.

Infosys Supply Chain Management

Industrial Manufacturing. Sourcing & Procurement. Sourcing & Procurement. ProcureEdge – Sourcing & Procurement. There was an incident where Alaska Airlines (flight 261) flying from Mexico to Seattle airport plunged into the Pacific Ocean. Sourcing,Procurement,Contract & Spend Management (38). About Us. Contact Us. Newsroom Investors Careers. Infosys Labs. Industries. Industries. Aerospace and Defense. Airlines. Automotive.

What Is the COVID-19 Impact on Your Supply Chain? We Surveyed the Transplace Network.

Transplace

10% or less are in Canada, Mexico or Europe. Cutting costs and looking for alternative supply sources were also prioritized along with making new budget revisions to adapt to the changes in the global supply chain. Business - Transportation Miscellaneous 3PL automotive business priorities chemical coronavirus COVID-19 CPG customer demand industrial inventory logistics manufacturing packaging retail shipping supply chain technology telecommunting transportation

US, Mexico Reach Trade Deal as Canada May Rejoin Nafta Talks

Material Handling and Logistics

The United States and Mexico have agreed to a new trade agreement, though the Nafta name is being dropped. President Donald Trump hailed a deal with Mexico to revamp the North American Free Trade Agreement as “a big day for trade” and said he plans to change the name of a reworked version of the accord. to Mexico. The northern neighbor has been on the sidelines of the talks since July as Mexico and the U.S and Mexico. and Mexico had focused largely on cars.

[INFOGRAPHIC, REPORT, & INTERACTIVE MAP] The US Manufacturing Workforce & Making it In America

Cerasis

While US manufacturing has been hit hard by nearly two decades of policy failures that have damaged its international competitiveness, it remains a vital part of the U.S. The US manufacturing sector employed 12 million workers in 2013, or about 8.8 Manufacturing employs a higher share of workers without a college degree than the economy overall. On average, non-college-educated workers in manufacturing made 10.9 US Manufacturing Interactive Footprint Map.

US reshoring index hits record high even before COVID-19 pandemic

EFT

US companies in 2019 sourced substantially fewer manufactured goods from 14 traditional Asian trading partners, apparently as a direct result of aggressive US government trade policies, according to the seventh annual Kearney US Reshoring Index. Kearney , the global management consulting firm that calculates the index, attributes much of the big 2019 shift to a 17% decline in US imports of manufactured goods from China, which has long been the leading choice for offshore production.

Supply Chain Risk Management: Could You Face a Category 4 Supply Chain Disaster?

Kinaxis

of east coast and Gulf of Mexico imports in September, according to an article from the Business Information Industry Association. The state of Florida “requires motor fuel (1) service stations near interstate highways or evacuation routes, (2) terminals and (3) wholesalers to have transfer switches and appropriate wiring to transfer the electrical load from a utility to an alternate generated power sources in the event of a power failure.

Guest Post from Tim Barnes: Navigating Trump’s 35% import tax, and how US companies can utilize “Parallel Manufacturing” to grow globally

NC State SCRC

One key topic of discussion has, of course, been US trade and bringing jobs back, the reversal of Carriers decision to move a manufacturing plant to Mexico, and proposed tax, or ‘border adjustments’ as they are often called, for US companies that have ranged from 35% to 45% (Trump has quoted both rates historically) to import foreign manufactured products. ship directly from Mexico to Japan for those Japanese customers).

This Week in Logistics News (February 18-22, 2013)

Talking Logistics

According to the press release: Transplace leverages the CombineNet ASAP® advanced e-sourcing technology as part of its expert solutions, helping customers develop and optimize their carrier strategy for procurement events involving truckload, less-than-truckload (LTL), and intermodal needs. Transplace delivered more than 50 customer solutions in 2012 using the CombineNet sourcing technology, in industries including consumer goods, chemicals, manufacturing, and retail.

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The Brittle China/U.S. Supply Chain

Enterra Insights

According to Tom Derry, CEO of the Institute for Supply Management, “There’s almost no industry sector — and when I say that, I mean manufacturing and nonmanufacturing — that isn’t reliant on China in the United States. … If you don’t have a first-tier supplier who’s sourcing from China, then your supplier’s supplier is.”[1] Increased domestic manufacturing of the more advanced components could act as a hedge against geopolitical risks.”[4]

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Portrait of a Steel Town: Where Others Fear a Trade War, Coatesville Sees Hope

Supply Chain Brain

The only steel left standing after the World Trade Center fell — a wall of forked “trident” columns — was manufactured here. steel imports, and last week, the president ended a temporary exemption from the tariff for the European Union, Canada and Mexico — three close American allies that together account for 40 percent of imports. Canada, Europe and Mexico have announced retaliatory levies.

The Transformation of Supply Chain Management – IoT, AI, & Blockchain

Oracle SCM

When IoT is specialized for industrial application such as manufacturing, it is also known as Industry 4.0 IoT has massive implications for supply chain management, including manufacturing, inventory management, and logistics. For Manufacturing – production managers can track output levels & yields of production across the globalized manufacturing base instantly – handy when you have hundreds of production lines spread throughout China, Mexico, and Turkey.

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