LDM, a company specialized in logistics and supply chain, alerted Mexican companies that still have time to implement business models, such as nearshoring, to protect, sustain or reactivate their operations due to the break in the supply chain.

This global crisis could result in a shortage of products in Mexico and Latin America.

Factors such as the trade war that the United States has with China, in which the first of them increased the costs of Chinese imports by 15% as of September 2019, have resulted in the decline in that chain.

Likewise, as a result of the pandemic, it was demonstrated that the global dependence on finished products or raw materials from Asia must be balanced.

LDM analysts detailed that the main line that Mexican companies could draw is to carry out nearshoring or purchase with nearby suppliers throughout the Americas.

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This commercial and supply model would help them reduce the time required to receive their products by up to 50%, in addition to expanding their portfolio of suppliers so as not to depend on other continents and thus serve their respective markets throughout the year.

One way is to strengthen the implementation of nearshoring with the United States, our main commercial partner with which 3,200 kilometers of border are shared is an obvious option for the implementation of more supply chain and logistics hubs between both parties in order to solve the shortage problem, said José Ambe, CEO of LDM.

For this model to be safe and effective, it is necessary to carry it out with blockchain technology, which allows information to be shared safely, facilitating interconnection between supply chain participants and allowing adequate asset management.

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According to the online statistics portal, Statista, the United States is the country that leads the ranking of the main importers with an approximate value of 2.6 billion dollars. Although Mexico ranks 12th, the nearshoring situation would be favorable between Mexico and the neighboring country.

Another alternative that LDM recommends to overcome the breakdown of supply chains is demand planning so that companies have the raw materials necessary to manufacture their goods. At the same time, they must have enough products in their inventories to satisfy the demand of their customers, particularly on dates when significant consumption is expected.

Additionally, companies must have an estimate of sales in order to obtain an approximation of them, which is why synchronization is required between all the departments that make it up, in addition to having previously established action policies and commercial strategies.

As a final point is having the appropriate suppliers to avoid variations in the quality of the products.

In Solili you can consult industrial warehouses available in Ciudad Juárez, Reynosa and Tijuana

Original note