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tariffs on imports from Canada, Mexico, and China is impacting global trade networks, affecting industries ranging from automotive and electronics to agriculture and energy. auto parts are sourced from Mexico, making the tariff impact immediate and severe. Mexico and Canada have imposed 25% tariffs on U.S.
Jorge Gonzalez Henrichsen and Joe Lynch discuss why China is moving to Mexico. Jorge is Co-CEO of The Nearshore Company , where he helps North American, European, and Asian manufacturing companies to successfully establish reliable manufacturing operations in Mexico. Sustainability – long supply chains produce more green house gases.
What do you think about Mexico? My short answer: What do your customers think about Mexico? The study highlights the opportunity for 3PLs this way: The growth of logistics services plays a crucial role in rendering Mexico’s businesses cost competitive as compared with similar ventures globally. percent and truck by 8.8
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?
Companies that previously prioritized cost-cutting and centralized sourcing quickly found themselves exposed to serious production and distribution risks. In response, many organizations have shifted toward decentralized and regionalized supply chain models, distributing production and sourcing across multiple regions.
Trade flowing across the United States-Mexico border has grown exponentially since the North American Free Trade Agreement (NAFTA) was enacted in 1994. In 2016, the value of goods traded between the two countries topped $525 billion, making Mexico the third largest trading partner of the U.S. Companies carrying freight across the U.S.-Mexico
The following will delve into some of the intricate farm-to-table challenges that supply chains face across sourcing, demand planning, procurement and inventory management, transportation, and warehousing. The blackberries you eat today could be from Mexico, and the ones you buy next week could be from California.
Companies importing and exporting goods, be it finished retail products, manufacturing components or materials, now face substantial cost and price pressures that squeeze margins and force difficult pricing, sourcing, operations and distribution decisions. For example, you might source from a domestic supplier that doesnt incur a tariff.
Secretary of Transportation, told CNBC on Friday morning that what the government is watching for over the course of the day, as the issue has been identified, is “the kind of ripple or cascade effects as they get everything back in their networks back to normal.” Secretary of Transportation Pete Buttigieg broke ground on a $1.6
As organizations look for reducing dependencies on concentrated sources of supply, Eastern Europe, Mexico, and South Asian countries will start providing viable alternatives to the current manufacturing powerhouse countries. Having such options allow them to get to the market faster, turning adversities into advantages.
And yet Jerry Peck, the vice president of product strategy for global trade and transportation execution at QAD, made the point that when global companies think about digital supply chains, global trade compliance is often not part of their thinking. Global trade compliance really needs to be part of companies strategic sourcing programs.
Before FreightWaves, Anthony received his Bachelor’s and Master’s degree in Economics from New Mexico State University. FreightWaves.com, the company’s news site, is the leading provider of news and commentary for the transportation and logistics space. FreightWaves is made up of three interconnected pillars: FreightWaves’?
In Part One of the series , Michael observed that standard sourcing solutions struggle in efforts to support direct materials sourcing because of specific challenges in the software design. He further established the case for why supply chain teams need to context integrated sourcing as well as procurement.
Mr. Frasquet is the executive director of corporate procurement, although his responsibilities include a much broader set of supply chain responsibilities than just sourcing. In Belcorp’s case they have four factories located in Colombia, Mexico, Peru, and Ecuador. How do we best handle surging transportation costs?
The excess capacity includes warehouses in New York, New Jersey, Southern California and Atlanta, according to an article in Bloomberg.com that referenced anonymous sources. The US Department of Transportation reported that transborder freight between the U.S. and North American countries (Canada and Mexico) in March amounted to $141.9
The international inbound transportation service is only available to Walmart Fulfillment Services (WFS) sellers that source or manufacture goods in China, and all cargo must be shipped from Yantian, Shanghai, or Ningbo ports. are then directly transported to a Walmart fulfillment center. and Mexico, according to the notice.
Should the work stoppage drag on, it could disrupt June 15s Formula One Canadian Grand Prix in Montreal, given that DHL is responsible for transporting the race cars used in the competition. Hunt, BNSF and GMXT Launch Intermodal Freight Delivery Service in Mexico More from this author Subscribe to our Daily Newsletter!
Bowman, SupplyChainBrain In the rush to adjust sourcing strategies in line with current trends in international trade, the answer might be to think small. It might mean setting up plants in Mexico or elsewhere in Latin America, aa means of cutting transit time and responding more quickly to changing patterns of demand.
Many of the states affected contained key ports and supply destinations, as well as transportation and logistics hubs. of east coast and Gulf of Mexico imports in September, according to an article from the Business Information Industry Association. These ports accounted for 18.3% container import shipments and 49.8%
Avoid the pitfalls of single sourcing and learn strategies to build a more resilient supply chain. Yet, within the pursuit of efficiency lies a lurking peril: single sourcing. The pandemic was a wake-up call to the dangers of single sourcing. What is single sourcing and sole sourcing?
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. Supply chains are messy. Blockchain in Supply Chain Can Help.
Con-way Freight Raises the Bar on Mexico Service, Adds Door-to-Door Tracking, 24-Hour Customer Resource Center, Enhanced Web Tools. Source data is a combination of reference and benchmark data from third parties as well as econometric models and formulas.
In an interview with My Purchasing Center , Nancy Huff – Sourcing Solutions Manager at business processing, technology, and procurement service provider Xchanging – spoke of many tangible benefits that come with a supplier diversity program. Access to a whole different network. Contributed by Kelli Saunders.
Then Jabil handles the sourcing and manufacturing of those products. They are sourcing from over 27,000 suppliers. Those sites are primarily located in China, Hungary, Malaysia, Mexico, Singapore, and the United States. The company engages in contract manufacturing services for companies.
Why Tariffs Are Stealing the Spotlight in 2025 Were only a few months into 2025, and yet one word has dominated nearly every conversation in global trade and transportation: tariffs. Tariff Volatility: The Ripple Effects on Transportation and Logistics Immediate Cost Impacts With duty rates rising, total landed costs are increasing fast.
Jerry Peck, the vice president of product strategy for global trade and transportation execution at QAD, made the point that better systems at customs agencies are leading to increases in cycle times for companies that are not on top of the complex documentation requirements associated with trade. This adversely affects a company’s cash flow.
The cost of drivers were reported as 6 percent in overall transportation costs, 4.9 Of noteworthy significance was the indication that Mexico overtook China as the largest trading partner for the U.S. Once more, the report observes that reshoring activities related to Canada and Mexico “ have significantly contracted in 2025.”
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? Transportation logistics software solutions play a key role in effectuating this change. This strategy is not without its risks though.
When the added costs of transportation and inventory working capital impacts are added, there is a solid logic to bringing manufacturing back to North America. Mexico has become more attractive, and many companies are looking at alternative sourcing in Latin and South America.
Global supply chains boomed thanks to bountiful cheap labor, dramatically less expensive communications, and lower-cost transportation. 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. .
We normally do our Talking Logistics episodes on Tuesdays and Thursdays, but we have one today at 12 ET with Alaster Love from Transplace, where we are going to discuss “ Big Data and Analytics in Oil and Gas Transportation.” Mexico Customs Management. September 2014 Freight Transportation Services Index (TSI).
Shipping lines again managed to extract added spot rates and surcharges which have impacted business transportation budgets. sourcing from China, with a correspondingly rise in import share from low-wage locations, chiefly Vietnam, and regional trade areas, particularly Mexico.” supply chain activity.
The regulation is designed to provide European consumers with extensive data about the provenance of the items they purchase, all the way back to the sourcing of raw materials. Beyond the promotion of ethical sourcing, it’s also about “how we can extend the life of products,” Balaam says.
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. Mexico has its share of challenges, of course. Europe and Asia Follow Suit.
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. We see this all the time with weather storms and the havoc they create on transportation and distribution operations.
states and parts of northern Mexico. The Louisiana Department of Transportation reported that all state-maintained roadways, except for I-20 and I-49 (sections that remain open), in the seven-parish Northwest region were deemed impassable because of winter weather conditions. Source: NWS. Parts of I-20 in Texas are closed.
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.” According to the Bureau of Transportation Statistics, “U.S.-NAFTA
3Gtms and Tompkins International Partner to Provide Transportation Management Systems Solutions to Strengthen Supply Chain Management. Amazon plans big expansion of online grocery business: sources ( Reuters ). percent is the magic number in the transportation industry these days, especially in the LTL sector. It seems like 5.9
The Supply Chain Matters blog highlights a published report indicating that Mexico is increasingly benefiting from a rethink of prior globally extended supply networks. In this vein of shifting supply sourcing actions, we continue to highlight for our readers surveys, editorials and developments related to this important strategy area.
The 30 th SCRC meeting kicked off today with a theme on “Transportation Strategy in an Infrastructure Constrained Environment”. This is a theme that was discussed a year ago at a conference in DC on Transportation Infrastructure, over coffee with William Lucas from Caterpillar. It is also happening at border crossings such as Mexico.
Truce Ocean Transportation J.B. Timely, incisive articles delivered directly to your inbox. Featured Product Popular Stories Ship Traffic Through Red Sea Remains Sparse, Despite Houthi-U.S.
CombineNet and Transplace Extend Partnership in Delivering Advanced Transportation Procurement Solution to North America. 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.
Murata Machinery provides a range of warehouse automation systems including traditional AS/RS, shuttle systems, conveyors and sortation, warehouse transporters (AGVs) and more. Fortna’s framework includes consulting, design, planning, sourcing, implementation, and lifecycle services. Lee Partners.
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