For manufacturers on either side of the border between Mexico and the United States, the supply chain can be a difficult and expensive aspect of conducting business. However, a recent move by the global shipping firm United Postal Service will likely enable greater flow of goods between the two countries, as well as with other worldwide partners.
Express delivery getting faster
According to Manufactura, a Spanish-language digital resource for manufacturing news, small and midsize businesses in Mexico have developed to the point where the current logistical options afforded by shipping companies aren't meeting their needs. During the height of the economic crisis, the majority of SMBs were focused primarily on costs, which meant the supply chain didn't necessarily have to be extremely efficient, but it had to be cost-effective. However, many businesses have since recovered from the economic downturn and instead are focused on speeding up the time it takes from invoice to delivery. As orders come in, SMBs and their customers expect rapid distribution and existing shipping options simply weren't allowing them to meet consumer demands.
A study conducted by UPS among small- to medium-sized enterprises found the majority of these businesses were looking for 24-hour delivery, flexibility and transparency in the supply chain. Accordingly, UPS has augmented its express services to meet the needs of business owners and manufacturers in Mexico. The shipping enterprise currently operates 1,400 routes to meet its "next-day guarantee," which covers packages weighing up to nearly 80 pounds and reaches 95 percent of zip codes in Mexico, Manufactura reported. In addition, General Director of UPS in Mexico Agustín Picado explained 19 brick-and-mortar stores opened that emphasize personalization. For instance, there are extended hours and curbside pickup for locations within 1 kilometer of the store.
More options for heavy freight
These kinds of options allow manufacturers and businesses in Mexico to more efficiently distribute goods. However, the UPS Worldwide Express Freight service is aimed specifically at automotive, aerospace and other industrial manufacturing stakeholders that need to send urgent or high-value freight more quickly than what was previously possible, according to El Financiero. Package freight weighing more than 150 pounds can now be sent to more than 40 destinations worldwide. With this new service, manufacturers in Mexico will be able to take advantage of automatic shipment preparation, online tracking features and real-time notifications.
As an increasing number of international businesses offshore in Mexico, the supply chain and distribution channels are capable of responding to more complex needs.