Why Partner with a Diversity Supplier 3PL Provider?

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On our last blog post, we wrote about the WeConnect Canada’s Opening Doors conference. WeConnect Canada distributes the Women’s Business Enterprise (WBE) certification for majority owned, and controlled women’s businesses. The conference is about how certifications such as the WBE is a great strategy for creating opportunities to provide a competitive edge for bidding on corporate contracts as part of supplier diversity programs.

But what is supplier diverstiy? According to WeConnect Canada:

Supplier diversity is all about building relationships and trust to enable business opportunities between corporations and historically under-utilized groups, like women business owners.

In essence, Supplier Diversity programs were creative to give minorities an opportunity to secure contracts with government agencies, major companies and corporations as qualified small business owners. This has come about a reaction to minority and women owned businesses being classified as under-utilized small business owners in order to promote balance and diversity for participating organizations.

In the United States, the Supplier Diversity program was conceptualized in 1953 along with the establishment of the Small Business Administration. The federal government’s efforts to create opportunities for often underrepresented small businesses was a natural segway into providing those same opportunities for minority groups, such as women-owned businesses.

These days a majority of large companies are indeed looking into how to incorporate minority-owned businesses into their partnership agreement and this is especially the case in the logistics and supply chain industry. The biggest challenge is discovery; large corporations have trouble identifying women-owned businesses. Hence the creation of certifying networking organizations such as WEConnect.

These types of certifications allow large corporation to find these companies and take advantage of the following benefits:

A Ready and Capable Force to be Reckoned With

Women-owned businesses are an untapped force to be reckoned with. There are 6.5 million majority women-owned businesses in the United States, employing 7.1 million people according to the U.S. Bureau of the Census. Large corporations agree that there is a strong business case for investing in women; a recent McKinsey & Company survey results showed that 35% of senior executives reported efforts to empower women in emerging markets led to increased profits with an additional 38% reporting an increase in profits in the future. This is even more emphasized in the world of logistics, a well known gentleman’s club but is slowly changing due to the benefits that partnering with diversity suppliers can provide, which brings us to our next point:

Unique Opportunities from Unique Expertise

Businesses that are primarily female-owned are often noted for their ability to have a unique view of the industry and can offer a fresh take on not just the ideas involved in the process but the along every step along the business process. Traditionally only seen in the service sector, women-owned enterprises are now in many specialized industries such as manufacturing, construction, and other industrial fields. This is evident in the efforts that large corporations like Cisco are taking steps into providing the most sustainable means to empower women through supplier diversity and inclusion.

And that’s all for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! To find out more about WEConnect and getting certified as a Women’s Business Enterprise (WBE), visit their site at www.weconnectcanada.org

BONUS: Check out Inc.com’s Top 10 Women-run Companies!

Logistics Glossary Week for October 2013

https://morailogistics.com/logistics-glossary-week-for-october-2013/

For this week’s Logistics Glossary Week post, we’re going to focus on hubs! What exactly is a hub? Well, it actually has many definitions. In the computing sense, a hub can refer to a common connection point for devices in a network. For example, a web hub was one of the initial names to what we now refer to as a portal. But what about the logistics sense? We see articles today that are discussing possible new logistics hubs for manufacturing or where the best logistics hubs are per region. So we thought that for this month’s blog post, we’d give you the breakdown on the logistics ‘hub.’

Logistics Hub

Definition: In logistics terminology, a ‘hub’ is a reference for a transportation network as a “hub and spoke.” The term is commonly used in the airline and trucking industry. A hub in the logistics sense serves as the focal point; its purpose is to handle the flow of good and other resources between the points of origin to destination in order to meet transportation requirements.

Logistics hubs can be mainly one form of transportation such as trucking terminals, rail hubs, or even a hub airport. All refer to the same idea. For example, a hub airport serves as the focal point for the origin and termination of long distance flights (flights from outlying areas meet connecting flights at the hub airport). But, it can also be a…

Multimodal Logistics Hub

Definition: A logistics hub that has more than one mode of transportation (truck, rail, sea, air, etc.) that handles the flow of goods and resources between the point of origin to destination in order to meet transportation demands and requirements.

Value Proposition

Definition: value proposition is particularly important to the definition of logistics hubs because in order for a logistics hub to be truly effective, there has to be value in using a particular location as a hub. Ideally the proposition is two-sided; meaning that the hub is a benefit to both buyers and sellers.

Hubs can be created organically due to pragmatic solutions stemming from a particular location. For example, logistics hubs can be near or around many manufacturing plants and companies that offer warehousing solutions. Furthermore, it could also be easy access between different modes of transportation such as truck and rail. This provides easy intermodal exchanges, like transporting goods from truck to rail. Because of this, routes are created and these hubs offer the benefit of convenience and potential cost savings for both suppliers and consumers.

And that’s all for us this week! Hope you have a happy Halloween and a great weekend! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! See you in November!

Opportunities Open in Mexico for North American Third-Party Logistics Providers

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Back in August, we created an Industry Focus Week post on Mexico and how it has the potential to be the new logistics hub for the North American supply chain. Recent North American manufacturing trends on nearshoring and bringing logistics needs closer to home have made Mexico an attractive option for many manufacturers, large companies, and even start-ups looking to solve their supply chain needs.

Mexico is not yet at the point that it can compete on every level with China, the king of logistics outsourcing. It has yet to achieve the manufacturing prowess that China has spent many years building up. But Mexico is becoming seen as a more and more attractive option due to its capable workforce and proximity.

The 3PL Business is Looking Good

Today, the Penske sponsored 20th Annual Survey of Third-Party Logistics Providers CEOs was released. The most interesting report is that North American CEOs are optimistic about their company’s growth (with an expected increase in revenue of 14.6% in the next 3 years).

Survey results have also indicated a growing preference for 3PL providers to migrate towards near-shoring from Asia-Pacific to Mexico. The biggest complaint of CEOs being the rising wage costs in China, causing even Asia-Pacific oriented CEOs to move to lower-priced geographies like Thailand, Vietnam, Indonesia, and Sri Lanka.

Furthermore, a whopping 87% of the North American CEOs interviewed reported providing 3rd party logistics services in Mexico (with and average revenue of 9.3% in the US, projected to increase to 12.5% in 3 years). Joe Carlier, SVP of Sales at Penske Logistics comments that:

As companies begin shifting their product origins to local regions, they will look for a third-party logistics provider that can strategically navigate through the new normal in the supply chain industry… This includes the shift in supply chain length, changes in speed and demand for warehousing and transportation along trade corridors.

Case: Automotive Manufacturing to Offer New Opportunities for Third Party Logistics Providers

Reuters recently released an article on how the Mexican auto industry is about to experience a $10 billion factory building spree. German and Japanese (Toyota, Nissan, Honda, BMW, Volkswagen & Mercedes Benz to name a few) manufacturers have already began developments in Mexico, looking to produce primarily for the United States.

These could potentially open up opportunities ripe for 3PL providers as companies are starting to look to outsourced expertise to provide some insight from companies who know the industry on this side of the globe and to take advantage of their network.

And that’s all for us this week! Hope you have a great weekend! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! We’ll catch you next week!

Industry Focus Week: Manufacturing

https://morailogistics.com/industry-focus-week-manufacturing/

Last Friday was the second annual Manufacturing Day (MFG Day). Co-produced by Fabricators & Manufacturers Association (FMA), the National Association of Manufacturers, and the Manufacturing Extension Partnership (MEP) in an effort to:

… addresses common misperceptions about manufacturing by giving manufacturers an opportunity to open their doors and show, in a coordinated effort, what manufacturing is — and what it isn’t.

The goal for MFG Day, with the support of industry sponsors and willing participants, is to work together and address the most controversial issues known to the manufacturing industry and to offer insights and solutions in order to ensure the ongoing success of the industry as a whole. Issues such as skilled labour shortages, connecting with future generations, and taking charge of the public image of the manufacturing industry are just a few examples.

Below is our effort to continue the trend and help increase the awareness of the best logistics and supply chain related event that you’ve might not have heard of.

The History of Manufacturing

Epic Systems, Inc. has given a great breakdown on the history of US manufacturing for MFG Day in the form of an infographic:

The manufacturing industry contributed $1.87 trillion to the US economy in 2012 and is arguably the backbone of the US. From the humble beginnings of supply and demand to the boom that the Ford’s Model T introduced in the rise of mass production and American economic prosperity, manufacturing has become integral to not only the United States, but most of the world.

Educating Future Generations to the Manufacturing Industry

What we felt were the greatest examples of Manufacturing Day were the efforts made by various cities to educate the future generations of the manufacturing industries potential workforce. Students today are face with an influx of options for careers and yet the world of manufacturing seems to still be enshrouded in mystery. Asking students about aspects of the logistics industry as a whole, never mind manufacturing, still leaves them with very little to say.

Which is why we felt that MFG Day is a great plan if not just for this very purpose alone! We thought we would present our favourite educational events that happened during this year’s Manufacturing Day as our small contribution to increase the awareness of both the manufacturing industry and of Manufacturing Day!

In an effort to increase awareness to youth about what is involved in manufacturing for MFG Day, Pasco-Hernando Community College has given engineering students in high school an opportunity to meet and learn with manufacturing companies. Accuform Signs, Alumi-Guard, Emery Thompson, AME, Time Wise Mobile Outreach Skills Training and Intrepid Machines have prepared various activities for high school students to learn about what happens in the manufacturing industry and what kinds of responsibilities they could be doing if they happened to work for their companies.

Students were offered tours, demonstrations from testing and crafting special types of paint, packing accessories with hardware, etc. to a skills training computer software demo. The demo involved teaching the students the basics of manufacturing skills needed today, such as welding.

In another instance of creating awareness, The Manufacturers Resource Centre (MRC) of the Greater Lehigh Valley worked with the DaVinci Science Centre, the Lehigh Valley Workforce Investment Board and the Lehigh Career & Technical Institute in order to organize a set of events for students to attend manufacturers who have opened their doors post-plan hours to see what manufacturing is like.

And that’s all for us this week! Hope you have a great weekend! If you’re from Canada, please enjoy the long weekend and Happy Thanksgiving! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! We’ll catch you next week!

Logistics Glossary Week for September 2013

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Welcome to our first Logistics Glossary post of the Fall season! This week’s focus: factors that affect trucking costs! One of the things that we’ve written about before is the difference between calculating the lowest rate and the lowest total cost when quoting a delivery from point A to point B. Today, we can provide a real concrete example of factors that can make calculating a basic rate misleading. Any good third party logistics (3PL) providers can provide a rate for transport, but to be able to consider these factors below to generate a lower total cost (even though it is not the lowest rate in the market) is what makes them great! But let’s start with the definition of what getting a rate is in the logistics sense:

Rate/Pricing

Definition: In logistics terminology, getting a rate or pricing from a 3rd party logistics provider simply means that you are being given the established charges for the transport of certain goods.

So, if I want to transport a package from New York City to Mexico City, the rate would simply mean how much the service would cost to move these goods from origin to destination. But that doesn’t really cover all aspects for what your total cost could be. What is usually being calculated is the line haul cost.

Line Haul Cost

Definition: What is usually given to you when you as for a rate from origin to destination. Exclusive to trucking terminology, it is incurred in transporting goods over a route but not including costs of loading and unloading. Line-haul costs vary directly with distance.

Sometimes, because rates are Below we’re providing a list of some common, additional costs that should be taken into consideration when getting rates to have a better idea of total cost.

Loading/Unloading Costs

Definition: In logistics terminology, loading and unloading is the process of putting shipments into or taking shipments out of containers respectively. The main reasons that these costs apply to your shipments is primarily because initiatives taken to minimize problems that may occur during these phases, especially the loading phase. Problems such as inadequately sized docks and rough terrain can lead to load damage and more costly delays.

Fuel Surcharge

Definition: A fuel surcharge is an additional charge for motor carriers like trucks to cover fuel costs and is dependent on the line haul. There is some controversy with how fuel charges work as having a line haul cost and the fuel surcharge in flux makes it hard to calculate total freight spend and makes carrier relationships more difficult to maintain. There’s an old blog post from Inbound Logistics Magazine that gives great insight into the standardization of fuel surcharges.

Stop-Off Charge

Definition: A stop-off charge is an additional cost to cover trucks having to make specific stops between origin to destination. In some cases this ‘stop-off’ might be conveniently on route to the destination, but it is not necessarily always the case. These factors obviously affect the cost for the line haul as we affect the distance and the route that trucks have to travel through. The main reason stop-off charges happen is primarily due to packages in the truck having to be delivered to more than one location (i.e. Toronto – Montreal, but with a stop-off in Ottawa). But another common reason is due to warehouse space capacity issues. Sometimes the destination has an overflowed warehouse and a stop-off is needed to accommodate for it.

Bond Fee

Definition: A special type of storage fee for ‘legal’ reasons and is usually seen in cross-border shipments. A package ‘in bond’ means that the goods under customs control (for clearance, inspection, or other form of legal involvement) either until import duties or other charges are paid, or to avoid paying the duties or charges until a later date.

We hope after looking at some of these cost definition you have a better appreciation of our earlier statement:

A good third party logistics (3PL) providers can provide a rate for transport, but to be able to consider other cost factors to generate a lowest total cost (even though it is not the lowest rate in the market) is what makes them great!

If, for example, I wanted to take a load from Vancouver to San Francisco and I have been given Rate A at $100 and Rate 2 at $120 from just the line haul cost. I could obtain estimates on the additional cost factors and find out that other charges are similar except Rate A has a high fuel surcharge of $50 and a bond fee of $30, while Rate B has a those costs at $20 and $10 respectively. We can see that Rate A actually has a total cost of $180 while Rate B has a total cost of $150. Thus the lowest total cost would be Rate B. This is something to definitely keep in mind when getting rates for transport. It pays to know your logistics terminology!

And that’s all for us this week! Hope you have a great weekend! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! We’ll catch you next week!

The Future of Logistics is All Up in the Air? Two New Modes of Transportation

https://morailogistics.com/the-future-of-logistics-is-all-up-in-the-air-two-new-modes-of-transportation/

There have been some exciting new developments in the world of logistics this year; the news of a predicted slow growth in the industry for the next five years hasn’t stopped innovation. The logistics industry has been creating exciting new developments along all the stages of the supply chain. From 3D printing to robots that organize your warehouse.

This week we’d like to focus on two new potential modes of transportation that can drastically change the future of what we perceive to be core tenets of the logistics industry today. Namely, one that stems from the military and one that has long been forgotten from the golden age of flight.

From the Military to Your Front Door

The first of the two new modes of transportation being explored is the commercial applications of the military drone. Drones, by definition are unmanned aerial vehicles (or systems). They are, according to Chris Andersen (creator of DIY Drones and co-founder of 3D Robotics):

“Aircraft that have the capability of autonomous flight, which means they can follow a mission from point to point (typically guided by GPS, but soon this will also be possible through vision and other sensors)… Usually drones carry some sort of payload, which at a bare minimum includes cameras or other sensors as well as some method to transmit data wirelessly back to a base.”

Recent developments in technology have made the production of drones quite cheap. You can actually purchase your very own drone with cheap models ranging from the $350-500 range with fewer features or in the $1000 range you can get one with many of the non-weapon based features that come with military grade drones.

Unfortunately for the North American market, the US Federal Aviation Administration is currently in limbo and won’t be testing out commercial transport drones until at least 2015. But that doesn’t mean other countries haven’t already taken the initiative to make it happen.

One of China’s biggest delivery companies, SF Express, has already received government permission and is testing their drones with the intention to deliver goods to remote areas. But it seems that drone delivery might be useful for more than just remote areas, some experts suggest that drone delivery can be extremely useful in congested city centers. Drones are said to have the potential help alleviate both traffic and pollution problems in China’s major cities.

Bringing Back the Zeppelin

The Aeroscraft in constructionZeppelin’s have not had the best reputation ever since the Hindenburg disaster of 1937, but over 75 years later have we developed enough as an advanced society to bring it back? Worldwide Aeros Corp. thinks so. Founded by Igor Pasternak, the company has introduced their first zeppelin for transporting commercial goods: the Aeroscraft.

With the intention to not just be another mode of air transportation for transporting goods across the globe, the Aeroscraft is actually intended for making humanitarian relief and military missions easier and more practical. Worldwide Aeros Corp. boasts that their zeppelin is not only cost effective and more environmentally friendly (it uses approximately one third as much fuel as a cargo plane), but also more practical as it doesn’t require airports or roads. The lack of need for airports is actually a unique key feature of these zeppelins as it really adds convenience with regards to delivery sites.

So what do you think of these two new developments?

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services. We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! We’ll catch you next week!

Logistics Glossary Week for August 2013

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Welcome to our last Logistics Glossary Week post of the summer! This week we’re focusing on the different modes of transportation for logistics and we’re finishing with a look into the potential future of logistics with the introduction of a new, interesting mode of transportation!

Intermodal

Definition: In logistics terminology, intermodal simply means using two or more modes of transportation, usually this refers to truck and rail, but it can refer to any combination of different mdes of transportation. For example truck and oceangoing vessel.

Intermodal transportation is one of the most common ways goods are transported, especially when crossing borders or when transporting good for significantly long distances. Indeed, our biggest offer as a third party logistics provider is intermodal logistics services. News earlier this year suggested that the logistics industry is to experience slow growth over the next 5 years, but it seems that certain aspects of logistics are less affected. Chief Supply Chain officers look to 3rd party logistics providers and intermodal seems to be on the rise in certain parts of the world, for example Eastern Canada.

Truckload & LTL

Definition: We’re grouping these two because they are essentially the same, but differ mainly in the size of shipment. When you think logistics, you normally think truckload transportation; moving full truckloads of freight from the point of origin to its destination. Less-than-truckload (LTL) transportation services consolidate and transfer smaller shipments of freight, usually through a network of terminals and rally points.

Trucking is what makes good move across the world. It is the standard for logistics, hence why you might think trucks when you hear the word logistics! Because this is one of the most in-demand mode of transportation for getting good from origin to destination, there is a huge demand for truck drivers. This is no truer that today, when the addition of e-commerce has created even more demand for trucking services. This increase in demand, combined with the aging trucking population (the average age is about 40, with 20% of the total population over 55), there is a real need to increase the tuck driver workforce in order to keep up with tomorrow’s logistics demands.

Ocean and Air Carriers

Definition: Useful for global logistics, ocean and air carriers are what you would assume they are. They are cargo ships or airplanes that carry freight. Usually these types of transportation fit under intermodal logistics services because they tend to be combined with some form of ground transportation.

Drones

Definition: Also known as ‘unmanned aerial vehicles’ or ‘unmanned aerial systems,’ drones are best known for their military applications. They are aircrafts that can fly autonomously; they usually follow a set path from origin to destination using a form of GPS guide.

The development of technology has brought down the prices of drones to as little as $500-1000 USD. We found an article that takes a look at people in the logistics industry who have introduced the concept of drones as a means to transport goods. This could create a potentially hassle-free way that can transport goods speedily!

And that’s all for us this week! Hope you have a great Labour Day Weekend! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services. We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news! We’ll catch you next week!

3 Advantages of Intelligent Returnable Transport Items (iRTIs) for the Global Supply Chain

https://morailogistics.com/3-advantages-of-intelligent-returnable-transport-items-irtis-for-the-global-supply-chain/

When goods are delivered for large packages what is the first thing that comes to mind? If you thought of a big cardboard box, then you’re among the majority of the population. This quintessential cardboard box has been a staple tool in the logistics industry for transporting all sorts of products. But times have changed. The future of logistics is trending towards more sustainable practices as well as for more creative ways to have efficient throughput in the supply chain cycle.

Enter the world of Intelligent Returnable (or Reusable) Transport Items or iRTIs. The concept comes from combining RFID technology to regular RTIs (Returnable Transport Items). RTIs are important to the development of not just sustainable business practices, but also for the practicality and potential profitability that it can offer. The RFID tags collect and capture information about the containers they’re tagged onto as well as its contents. This gives a whole new set of accessible, actionable date for supply chain managers.

This week we’re going to talk about our top three advantages of having an iRTI system for the global supply chain.

Improved Sanitation and Cargo Control

iRTIs are a great benefit primarily in the food and pharmaceutical industries, the main benefit of which is the fact that these container provide not only a more hygienic solution due to the nature of having durable, fully enclosed containers, but also for the fact that it lends itself to special considerations such as temperature control. This greatly benefits perishable supply chain challenges iRTIs have are able to track the conditions of goods within containers.

Other methods can provide holes along the monitoring of the supply chain and this lack of visibility and actionable data for perishable goods such as pharmaceuticals and food can lead to product loss, recalls, and legal woes. iRTIs can greatly reduce, and in certain cases, eliminate these issues leading to a system set up with avoidable product loss.

Less Wasteful and a More Sustainable Solution

Reusable packaging is not a new concept, and it has been shown in the past to be tantamount to solid waste reduction strategies. Because containers are durable and reusable, iRTIs reduce the carbon footprint and waste that non-RTI packages create primarily by reducing their solid waste output. But iRTIs take it one step further; Rick LeBlanc from RFID Arena provides some great concrete statistics on its sustainability advantages:

“One third party study, reviewing the use of RPCs [Reusable Plastic Containers] versus corrugated display ready packaging for 10 fresh produce commodities, concluded that RPCs required 39 percent less total energy, created 95 percent less solid waste, and generated 29 percent less total greenhouse gas emissions than corrugated display ready containers.”

Profitability and a Closed-Loop System

Reusable containers have already been an attractive consideration in the supply chain because they can greatly reduce the cost-per-trip of transport packaging by virtue of the fact that the containers are re-usable, meaning that costs are predicted based on the durability of the containers themselves as opposed to non-RTI containers which would just be disposed of after delivery. iRTIs take this cost-saving one step further due to the abovementioned features of greatly reducing instances of product loss, liability exposure, recalls from ineffective products, etc.

Thus, it seems that RFID technology is slowly making itself more and more relevant to the logistics and supply chain industry. The addition of RFID to a global supply chain can create ‘smart crates’ that not only really cater to food and pharmaceuticals, but may be a viable option in general for both its cost-cutting and sustainability benefits.

Well that’s it for this week. Tune in next week for out next blog post! If you want to know what we do as a third party logistics provider (3PL) check out our core services. If you haven’t already check us out on Twitter (@MoraiLogistics), give us a follow or a @mention, we’re looking forward to engaging with you. Otherwise, stay tuned for next week’s post on our monthly Logistics Glossary Week series!

Industry Focus Week for August 2013: Mexico & Offshoring

https://morailogistics.com/industry-focus-week-for-august-2013-the-mexican-logistics-hub/

 In the world of logistics several factors can be involved when it comes to producing and moving your goods. Where is the best place to manufacture your products? Should we stay within the county’s borders or go offshore? If so, which country would produce the most cost-effective solution, or produce with a certain level of quality? This month, we’re going to focus on an interesting logistics hub that is sometimes overlooked, but is always at the back of most Supply Chain Officers minds: Mexico.

The Offshore Duel: Mexico vs. China

While there has always been an attraction towards creating logistics and supply chain hubs in Mexico as a means to reduce production costs, among other things, the competition has always been Mexico vs. China with regards offshoring options. For the past decade this has always been the case, but as the US economy creeps to pre-recession levels, American companies have been looking to restructure their supply chain. Companies are bringing their products closer to home and Mexico has become an attractive nearshoring alternative to making products within country in order to keep costs low while maintaining production quality.

According to the Offshore Group’s recent blog post:

Michael Shifter, president of Washington policy group Inter-American Dialogue, told Reuters U.S. manufacturers are shifting their sights to Mexico to be part of the country’s $800 billion goods and services market.

“There’s something happening in the region and the U.S. wants to be part of it,” Shifter said. “Whether there’s a well-thought-out vision or policy remains a question. But there is more of an affirmation of the region and a willingness to engage.”

Mexico’s Logistics Infrastructure

Mexico is aware of these trends and has already taken initiatives in order to attract companies to invest in their logistics hubs. Here are some of the highlights that we find to be the most appealing with regards to being a strong contender as a logistics hub for companies.

Improvements to Mexico’s Railways

According to Railway Track and Structures (RT&S), Mexico is investing in 4 billion pesos (~$318 million USD) to copmlete 12 rail-specific projects underway that will improve routes between Mexico City and Queretaro (a known manufacturing centre) and between Meridia and the Riviera Maya. This plan is said to increase transportation and communications speed; offering attractive intermodal options for many US companies.

Improvements to Corporate Social Responsibility and Sustainability

As US businesses begin to relocate south of the border, considerations to improve Mexico’s corporate social responsibility (CSR) policies and sustainability practices have gone underway. Over half of the 166 publicly traded companies in the Mexican stock market have created a system for managing sustainability related activities, with considerations for improvement in the supply chain included. This is a great start due to the fact that sustainability along all levels of the supply chain is still in its developing stages at the global level. Such an initiative offers a competitive edge towards Mexico’s main offshoring competitor, China, as trends for companies to tackle on green practices have now prioritized considerations on sustainability as a determinant for deciding offshore locations.

For more information about how Mexico is seen as an attractive supply chain location for both manufacturing and distribution, check out this great white paper from Jones Lang LaSalle.

If you liked this blog post and you want to read more of our content, don’t hesitate to subscribe to our blog. Or if you want more logistics and supply chain content throughout the day, follow us on Twitter! If you’re interested in what we do as a 3rd party logistics provider, feel free to check out our core services. Otherwise, we’ll catch you next week!

Logistics Glossary Week for July 2013

https://morailogistics.com/logistics-glossary-week-for-july-2013/

Welcome back to our monthly Logistics Glossary Week post! A couple of weeks ago we posted some great infographics that we found and a lot of them seemed to focus on trucking when we were searching for content. So this month we’re going to focus on the world of trucking. Specifically, we’re going to cover all of the different types of trailers. There are currently about 35 terms for the number of different trailers that is recognized in the American trucking industry. This month we will only be focusing on four types that we think are good to know about!

Dry van

Definition: What you first think of when you think for a truck with a trailer. A dry van carrier is an enclosed non-climate controlled rectangular trailer. It mainly carries general cargo, including food (but the kind that doesn’t require refrigeration). These types of trucks are loaded or unloaded via the rear doors and you would need elevated access for forklifts to put goods into the trailer.

Reefer or Refrigerated Van

Definition: Reefer trailers are truckload carriers that are designed specifically to keep perishable goods refrigerated. This type of carrier tends to be used by the food industry, but can also be used by pharmaceutical companies.

Reefer trailers are particularly important with regards to logistics because of their main purpose: preserving goods. Thus of all types of trailers, reefer trucks can be deemed the most time sensitive. This is apparent in certain governments attempting policy changes specific to the refrigerated vans. For example, India’s National Centre For Cold Chain Development (NCCD) has teamed up with the government to allow refrigerated trucks and vans toll-free access across all states.

Flatbed

Definition: A flatbed is a type of trailer that has no enclosures or doors. Sometimes known as a ‘haul brite,’ flatbeds can be loaded or unloaded from the sides and the top and doesn’t require elevated access for forklifts.

Tanker

Definition: Tankers have the primary purpose of hauling bulk quantities of liquid. They tend to be cylindrical in shape.

Tankers are special trailers that require quite a bit of attention and care as tankers can carry liquids that may be dangerous, for example oil. A fair chunk of accidents in the trucking industry result from tanker type malfunctions or accidents. And even when tanker trucks are being maintained gas leaks from flammable substances such as oil can lead to severe accidents.

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