Although estimates by consulting firms such as Deloitte have considered Mexico as the Latin American nation that would benefit the most from the nearshoringwith the potential to attract up to 35 billion dollars in new investments, the World Bank, through its Latin American and Caribbean Economic Report 2024, Competition: the missing ingredient for growth?warned that investments They are not making a big impact so far..
In this regard, consulting firms such as KPMG have indicated that one of the main challenges will be to capitalize on the nearshoring, but… how to do it from companies? Technological innovation in supply chains can reduce uncertainty arising from various conditions in the context, including changes in demand or disruptions in infrastructure.
The adoption of new management technologies is a key element to overcome the challenges posed by the nearshoring to supply chains, impact the growth of companies and, in this way, unlock the development potential for the regions. However, the reality of Mexico is that only between 2 and 17% of companies have adopted some type of complex tools such as artificial intelligence, autonomous systems, robotics, big data, IoT, APIs, BI and data analytics.
In principle, success for the industrial sector depends on the ability of companies in Mexico to produce, store and distribute efficiently: speed and precision will be essential for customer satisfaction and to keep the supply chain moving.
Warehouse operations are more challenging because they are often distanced from other supply chain functions, such as demand planning, sales and operations planning (S&OP), and procurement, both physically and in different locations. as within temporal planning.
In this context, the WMS (warehouse management system) is the key piece that will drive various industries to manage and control daily operations with maximum efficiency and thus achieve efficient supply chains, with added value.
Warehouses and distribution centers can face challenges that impact everything from inventory management to operational strategy, employee management and more, so utilizing automation tools is one of the most important elements in overcoming these challenges and enhance the benefits that could reach between 2 and 4 million jobs by 2030, in addition to increasing Mexico’s GDP between 1.5 and 2.5 percent in the long term and improving labor productivity between 15 and 30 percent by 2030, according to data from the Council of Global Companies (CEG).
Efficient warehouse management, key to the emergence of the nearshoring
However, Mexico faces the risk of losing these opportunities if it does not have the necessary infrastructure such as manufacturing and storage facilities, as well as the adoption of new technologies, challenges that must be addressed in a timely and effective manner. According to the CEG, Mexico has a window of opportunity of no more than six years to attract these investments from nearshoring.
Although the nearshoring opens the opportunity to add value to supply chains, you have to be prepared to meet today’s demand and that to come. There is no doubt that the integration of new technologies brings significant benefits. Developing a detailed automation strategy that is supported and scaled by a WMS will be a key factor in driving operational success.
Alejandro Luna is country manager of Infor México.
