Logistics Sector In Mexico
The World Bank’s Logistic Performance Index for 2011 has Mexico in 50th place out of 155 countries in terms of logistic efficiency, a five place advance from the last report. Mexico’s logistics sector can be the platform to launch different products to all continents.
There is a direct correlation between the development of the Industrial sector in Mexico and Logistics. As more Tier 1 companies look to expand operations to emerging markets such as Mexico in order to lower costs and stay competitive, there is a growing need to transport goods from A to B in the fastest, safest and most efficient way possible. It is also true for Tier 2 and Tier 3 which sometimes follow Tier 1 companies locating close to their customers.
Ambitious construction projects have been set up throughout the 2010-2014 period with an investment of more than $US230 billion in constructing and updating logistic installations in 5 key areas of the country. Among these projects, the most important ones are the Pacific Corridor Manzanillo-Lázaro Cárdenas that tries to capitalise on the issues of the Los Angeles-Long Beach port that is working on top capacity; and the Mazatlan-Matamoros corridor, which with US$1.5 billion investment will renovate and construct more than 900km of highways. Furthermore, over US$2.8 billion was invested in shipping and ports between January 2010 and September 2011. Moreover, investment in the airport sector increased by 21% compared to the 2001-2006 period.
Currently Mexico relies upon more than 2,500 agencies that handle exports and imports. Statistics show that transportation, warehousing, and communications represent over 250,000 million pesos of Mexico’s GDP (around 12.5 Million GBP). Mexico also has 12 FTAs (Free Trade Agreement) that encompass 44 countries, which have affected the increase on merchandise volume, reduced costs, and improve cargo management, distribution and storage.
According to the market characteristics the following goods and services could have opportunities in the Mexican market:
Construction of logistic corridors.
Management and ICT for logistic corridors.
Warehouse management equipment and software.
Asset and vehicle tracking solutions.
“Realtime” hand held bar code scanners.
RFID related technology.
In 2012, Mexico offers the following infrastructure facilities:
59 International airports and 26 national.
A vast road network of 366,095 km that connect North to South, and the Pacific to the Gulf of Mexico.
16 Maritime ports open to international trade, which are classified as number 8 in the world in terms of infrastructure according to the World Economic Forum, and connect to Asia, Europe, Africa and the rest of the Americas.
27,500 km of railroads.
547 industrial parks.
Getting into the market
The basic technology used on the Mexican Logistics sector is GTIN (Global Trade Item Number) in packaging (GTIN 14) and for logistic support (GS1 128), they have proven to be helpful to reduce errors during data capture; RFID is implemented on labels or tags, currently, CAPUFE, which is the company in charge of the administration of toll roads in Mexico, use RFID tags in its express lanes.
Companies also use EDI (Electronic Data Interchange) in electronic commerce to improve efficiency of operations and productivity. For instance, shipping agents use it for the creation of packing list or bill of lading, and data bases, helpful to create directories, which can be for public or private interests.
Distribution companies use CRM for customer service and key activities, and ERP software for support activities such as planning and finance. In a global ambiance, communication is vital to suffice clients demand and to be in touch with suppliers; therefore, ERP is another common technology in Logistics sector in Mexico.
In technology matters, RFID tags, sensors and central readers improvement is vital for companies of expensive products, perishables and meat, who want to monitor in real time such products; public and private sector try to deploy this technology on personnel control, assets tracking, tire monitoring, etc.
Stock management in distribution centres want to use RFID on boxes through transporting bands to classify merchandise. For instance, textile sector use a smart label on fabric rolls to manage clothing stock
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.
Luis Calette, Trade & Investment Officer. Tel: +52 (664) 615 8046 or email: [email protected]
Ana Gallardo, Trade & Investment Officer. Tel: +52 (664) 615 8046 or email: [email protected]
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.
Logistic Summit and Expo 2013
17-18 April, 2013
Expo Logística 2013
18-21 June, 2013
Expo Carga 2013
11-13 June, 2013
Logística Farmacéutica 2013
(Date to be confirmed)