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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Mexico Back in the Supply Chain Spotlight

Talking Logistics

It seems like we’ve come full circle with Mexico. A lot of companies set up operations and sourced from Mexico back in the 90s, then the focus shifted to China and other Asian countries, and now Mexico is back in the spotlight. What is it about Mexico that makes it an attractive trading partner again? There are roughly 4,000 maquilas operating in Mexico today…. . Luckily for Mexico, the U.S. Mexico has built up substantial reserves.

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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?


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. are among the reasons Ford, General Motors and Fiat Chrysler produce some of their vehicles in Mexico, with Ford to double its production starting 2018 via a new plant in San Luis Potosi.

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. Mexico trade risks. Mexico border is causing congestion —and creating havoc—for many supply chains in the same way Mr. Kass described. . Mexico border are severely delayed? Nearly three years ago, C.H.

USMCA and the Role of Cognitive Sourcing


However, Mexico would need to substantially raise wages to comply with the agreement which would raise costs across the board. Increasing pressure to remain competitive with higher costs will force sourcing strategists to adopt new methods so they don’t fall behind.

Supply Chain News on Leaving China Sourcing is Hard, but for Some Companies the Savings could be Significant

Supply Chain Digest

New PwC Report Says Saving New 25 Percnt from Switching to Mexico or Other Asian Sourcing Points

Blockchain for Responsible Sourcing – Where Does It Fit?


Does the vast potential of this promising technology mean that companies of all sizes and stages should be rebuilding their responsible sourcing systems from the ground up to include it? Or is blockchain still an experiment relegated mainly to the process of tracking products from the source through known supply chains, without much to offer companies looking to comprehensively evaluate environmental and social risks within the supply chain?

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. This was having a major impact on Sensata, and also suggests the increasing growth in the Mexico industrial market for manufacturing facilities. Unemployment rates are less than 2%, so talent management is important for companies seeing the growth of industry in Mexico.

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.” Mexico freight totaled $45.2 Mexico freight than in March 2014. Mexico air freight rose 15.7 As I highlighted in a post last October, all signs point to Mexico playing a greater role in supply chains.

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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.

Mayor Taps Leamer for Mexico Delegation - UCLA Anderson School.

The UCLA Anderson Global Supply Chain Blog

Mayor Taps Leamer for Mexico Delegation. Ed Leamer is traveling to Mexico City with Los Angeles Mayor Eric Garcetti this week on the first international trade mission of his administration. That’s why we need more Mexican students in our colleges and universities here in Los Angeles, and we need to send more of our Angeleno students to study in Mexico.”. Between Los Angeles and Mexico City alone, total trade amounted to $2.18 UCLA Anderson School of Management Blog.

This Week in Logistics News (April 1-5, 2019)

Talking Logistics

Mexico line as border agents moved (Reuters) Global trade growth loses momentum as trade tensions persist (WTO) Shipping Comes to Terms With $50 Billion Clean-Fuel Bill (WSJ – sub. Mexico Border Crossing Delays. This week, as reported by Reuters, a different type of storm disrupted supply chains: “trucks delivering goods from Mexico to the United States are facing up to 12 hours of gridlock, drivers said, after a transfer of [750] U.S. “I’m worst at what I do best.”.

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This Week in Logistics News (December 5-9, 2016)

Talking Logistics

The sky and what’s beyond, an endless source of creativity and imagination for kids and adults alike. Retailer Wal-Mart de Mexico to invest $1.3 billion in Logistics in Mexico (Reuters). Regulations Sustainability This Week in News Transportation Management air freight Descartes Systems Group e-commerce eBike enVista Hours of Service hydrogen truck Mexico MyWebGrocer Nikola One One Network R2 Freight & Logistics UPS Walmart

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.

Post Award Contract Management with $40 Oil: Insights from Shell’s Kevin Fronk

Supply Chain View from the Field

Kevin and I worked together years ago to help define the a baseline framework for strategic sourcing and category management that was deployed within the Lubricants group, and which later became deployed across the entire Shell Procurement organization. This conversation was further clarified in my mind when I spoke with a journalist, from the Mexican journal Manufactura, about the importance of procurement in Mexico.

Just How Risky has Mexico Become as Sourcing Location?

Supply Chain Digest


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


” 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. Business Process Outsourcing Design for Supply Chain Outsourcing Strategic Cost Management Strategic Sourcing Supply Chain Innovation Supply Chain ManagementJeff Townley, former Chief Procurement Officer at Nortel Networks, provided some fantastic insights in my MBA class this evening.

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


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. Blockchain in Supply Chain Can Help.

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

Supply Chain Collaborator

The survey shows that a full third of companies with global supply chains intend to move their sourcing and manufacturing activities out of China in the next few years. With trade wars and tariffs pinching operational profitability, manufacturers are looking at alternative locales like VietNam, India and, Mexico. For American manufacturers of high tech, industrial and food and beverage products, the Mexico option poses a unique opportunity.

Supply Chain Management:Lubrication Management - An Integral.

Infosys Supply Chain Management

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. Communication Services.

What Logistics Leaders Need to Know about the USMCA Treaty


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.

The Supply Chain of a Computer

SCM Research

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? Where does value creation take place?

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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.

Exodus out of China gathering pace


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.

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


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.

Shortages in Medical Supplies Linked to Imports

Logistics Trends and Insights

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. import countries were: Italy, Canada, Mexico, Pakistan, and India. Disruptions in global trade have impacted businesses across all industries as well as by consumers at the cash register.

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


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.

COVID-19 to cause drastic shifts in supply chain management


The reports also analyse the extent to which COVID-19 has accelerated the movement of production and sourcing away from China.

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. Mexico trade.

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This Week in Logistics News (November 10-14, 2014)

Talking Logistics

Mexico Customs Management. As reported in the Financial Times : Under the most eye-catching plan – known as Synchronised Delivery Solution – a package due to be delivered to a given address will wait for others coming from other sources, which will then be delivered with it. . Mexico customs process.”

Procurement’s Role in Managing the Tariff War


Then think about domestic sources within the NAFTA region of Canada and Mexico, and whether you will be able to shift supply to these locations, even though at face value product prices may be higher. China Supply Chain Director's Blog Strategic Sourcing Supply Chain Economics Supply Chain From The Field Tariffs UncategorizedThe news is in – in the form of more Tweets, of course.

Is Traffic Congestion Slowing Down Your Delivery During Peak Season? We Got A Solution!


Image Source) 1. Globally, INRIX 2018 Global Traffic Scorecard shows that Moscow, Istanbul, Bogota, Mexico City and Sao Paulo make the top 5 in Global Congestion Impact ranking (INRIX Research, 2019). Image Source) 2. Image Source) A case is explained in Cairo Traffic Congestion Study when they calculated all of the component costs that directly related to traffic congestion in Greater Cairo. Image Source) 5.

Supply Chain and Logistics Conferences to Attend in 2015

Talking Logistics

In my opinion, the best source of practical knowledge and advice are your peers — that is, executives just like you who have already met and overcome the same challenges and opportunities you face today. Logistics Summit & Expo , March 18-19, 2015 in Mexico City, Mexico. Last January, I shared 5 New Year’s Resolutions for supply chain and logistics executives to improve as leaders.