Management of Global Supply Chains: Mexican Perspective

Logistics is crucial for international trade, driving economic growth, lowering costs, improving customer service, and boosting countries' competitiveness.

A global network using various transport modes (truck, rail, ship) for efficient and safe international trade.

Concentrations of logistics services and companies, which can be used to help improve efficiency in global trade.

Problems that occur in global supply chains, often caused by events like port congestion.

Significant delays and increased costs in global trade due to excessive container buildup and related issues at ports.

Uneven distribution of containers in global logistics, causing supply chain challenges.

Expenses involved in moving goods through the supply chain, affected by various factors, including port congestion.

Shifting production and supply chains geographically closer to the customer, often for cost reduction and responsiveness.

About 40% of global shipping vessels are empty.

China is a major exporter of manufactured goods, making up about 20% of global imports in 2015.

Asian supply chains rely significantly on China for intermediate goods, around 40% in 2020.

China's production costs have risen significantly (170%) over the past decade.

Global supply chains are shifting from global and JIT strategies to regionally optimized inventories.

More goods are traded within regions than between regions.

Mexico's logistics performance is relatively low, ranking 15th globally in the World Bank’s Logistics Performance Index (LPI).

Singapore is the top-ranked country in global logistics performance, having a ranking of 1 on the Logistics Performance Index (LPI).

Moving production and supply chains closer to the customer, often to reduce costs and improve responsiveness.

Mexico offers several advantages for nearshoring including a young and large workforce, skilled engineers, trade agreements, and proximity to the US.

A mechanical device that folds or adjusts a car seat with the press of a button.

Challenges include the need for better logistics, higher manufacturing costs due to USMCA, and increased competition from low-cost countries.

By improving logistics, diversifying exports, adopting resilience practices, and embracing new technologies.

Mexico's proximity to the US and similar time zone allow for easier communication and faster turnaround times.

Mexico's young population provides a large pool of skilled workers and a potential advantage for industries needing a large labor force.

The United States-Mexico-Canada Agreement is a trade agreement that replaced NAFTA, introducing new rules for trade and manufacturing between the three countries.

The network of transportation systems in Mexico, including railways, seaports, highways, and airports, that facilitate the movement of goods and services.

Mexico has a vast network of 117 seaports along its 11,000 km coastline, making it a major hub for global trade.

Mexico's railway network spans 23,380 km, connecting major cities and industrial centres.

A major seaport in Mexico, strategically located on the Gulf coast.

Mexico's extensive highway network comprises both toll highways and free highways, facilitating transportation.

Mexico has both domestic and international airports, connecting major cities and providing access to global destinations.

Strategic routes connecting major industrial centers in Mexico to US markets, facilitating cross-border trade.

A significant border crossing between Mexico and the US, handling a large volume of truck and rail traffic.

The US-Mexico border is a crucial trade route, with Laredo being the leading US international trade port, surpassing even Chicago.

A standard unit of measurement for cargo containers, used to quantify the volume of goods shipped through ports.

Mexico is actively increasing its use of renewable energy sources like wind and solar power. The country has a large solar park in Puerto Peñasco, Sonora, and significant wind power capacity.

The US sees Mexico as a potential manufacturing hub for low-tech products due to its lower labor costs. However, concerns remain about infrastructure, supplier base, and security.

These terms refer to shifting production and supply chains closer to the customer. Nearshoring is specifically about moving operations to nearby countries, often for cost reduction and quicker delivery.

Automation is becoming increasingly common in manufacturing, leading to the potential for moving jobs to places with lower labor costs.

These tools allow businesses to track their supply chains in real-time and gain valuable insights for optimizing operations. Automation plays a significant role in enabling these capabilities.

A proposed transportation and logistics network linking Mexico's Pacific and Gulf coasts via rail, highway, and industrial zones, aiming to reduce shipping time and cost for goods travelling between Asia and North America.

The United States-Mexico-Canada Agreement, fostering trade and creating opportunities for Mexico in sectors like automotive, aerospace, electronics, and agribusiness.

A major exporter to the US, contributing significantly to Mexico's GDP and employing millions, boasting leadership in producing various agricultural products.

A global leader in automotive production and exports, boasting a large workforce and contributing significantly to the country's manufacturing sector.

A major car manufacturer relocating a large portion of its supply chain to Mexico, demonstrating the country's growing appeal for automotive production.

A thriving sector with a growing number of aerospace companies, contributing significantly to exports and solidifying Mexico's role in the global aerospace industry.

The trade conflict between the US and China had a significant impact, potentially shifting supply chains and increasing opportunities for Mexico as an alternative manufacturing hub.

Companies increasingly shift operations closer to their customers, leading to increased demand for industrial land in Mexico, indicating the growth of nearshoring activities.

A significant potential for manufacturing hub growth due to a skilled workforce, strategic location, cost advantages, and various trade agreements, making it attractive for nearshoring.

The intricate web of suppliers and manufacturers in the automotive industry, highlighting the importance of collaboration across borders, particularly between Mexico and the US.