Today’s article shows how we can accomplish that!
One of the most competitive cities in Mexico, Chihuahua, on the northern border of the country, answers for more than 10% of the production of auto parts in Mexico*. The capital of the Chihuahua state has positioned itself as a country leader regarding foreign direct investments to the automotive sector, alone being responsible for 13.64%** of all the country’s exports.
2019 was not one of the best years for the Mexican automotive industry, but the signature of the agreement between the United States, Mexico and Canada (USMCA) offers interesting opportunities for the arrival of new automotive suppliers in the Mexico. That can show positive impacts over the return of investment (ROI) numbers in this sector.
Therefore, all companies that take part in the production process of automotive vehicles (OEMs, Tiers or aftermarket suppliers), need a logistics partner that is sensitive to the risks and time schedules of each and all of their supply chain’s processes. Having a logistics advisor with established expertise in that industry is fundamental to support the optimization of the automotive supply chains.
Chihuahua’s market potential
We, in Europartners Group, have started 2019’s works assessing the market potential in Mexico’s northern region. Our bets were placed on the development of projects directly from our own offices in Chihuahua City.
The presence in this area enables us to serve the market throughout the whole state’s logistics corridor, moving cargo to and from the US through all Texas’ ports of entry and exit.
Ciudad Juárez, the most economically developed city in the state, can also benefit from the automotive industry growth. To strengthen the auto parts sector in this area, it consistently motivates the installation of strong global assembly companies, which could boost the economy in the region.
Our office in the city began to operate with very important clients: three of the most robust Tier 1 in the automotive sector, previously served from other offices in Mexico.
“We diagnosed that we needed to make our presence felt in Ciudad Juárez, providing local attention to the plants, with the high-level of logistics’ expertise and sensitivity that EP Automotive has conquered over the years,” says Marisabel Acosta, Key Accounts (KAMs) leader in EP Automotive, Europartners Group team expert in the automotive sector.
“Just like those companies, we have identified that in Ciudad Juárez there are many Tier 1 that also need this local attention, because many of their decision makers are there,” adds Marisabel.
Ciudad Juárez at the forefront for its strategies in the automotive supply chains
Over the last few years, several major companies have been implementing drastic changes to the way they ship supplies. To save costs, they’re hiring consulting companies to help them transform their urgent cargo necessities into planned processes.
The strongest companies in Ciudad Juarez are already following that trend. To remain a fundamental part of the success of their customers’ supply chains, excellency freight forwarders, such as Europartners Group, must be:
- Time sensitive. Providing fast and correct responses in each process of the logistics of a company is vital to optimize costs and avoid supply chain disruptions.
- Being flexible in terms of customer needs, of promptly adapting to special circumstances, being able to make changes within the normal structure as suppliers, without bureaucracies or setbacks when bringing the customer what he/she really needs is pure gold.
- Versatile to the demand. Being hand in hand with clients all over the continuous transformations that the industry demands, to adapt quickly to market changes.
- Capable to formulate strong diagnosis and processes. It is very important to conduct periodic evaluation sessions about the client’s current supply chain processes, to detect effective areas of action, elevating them (the processes) to a project tailor-made to that particular supply chain, with clear steps to be executed to achieve success.
- Aware to new technologies. Constantly seek to come up with new ideas related to new digital tools that will enable FFWs to build automated processes and, consequently, optimize time and costs.
These are only a few examples of the good practices we have implemented at Europartners Group, designing tailor-made solutions to each company’s needs.
“We are coordinating efforts with our clients’ operations, finance and logistics sectors, among other related departments, to achieve better budget planning,” reveals Paloma Olivas, executive at EP Automotive in Ciudad Juárez.
Europartners, in the heart of the desert
From the heart of the desert, as Europartners Group we move programmed cargo or ground expedited, hand carry and other air services via Houston, El Paso and several other routes. We are also constantly developing special critical cargo products for air export – ocean freight, too – working hand in hand with EP America, our brand in the United States and Canada.
Paloma Olivas, EP Automotive executive responsible for the local Europartners Group office in Ciudad Juárez, highlights that “bilingual and intersectoral communications with our clients are one of our main differentiators.”
The experience acquired by Europartners Group over the years, along with specialized attention to the automotive sector, enable us to provide excellent services to other industries with a strong presence in Ciudad Juárez, too.
“Similarly to the automotive industry, electronics, high-tech, pharmaceutical and aerospace companies cannot experience any delay in their supply chains. Using all the know-how we have developed serving the automotive sector, we can offer them the logistic intelligence they need,” confirms Paloma.
Our team of EP Automotive experts can improve your supply chain logistics in ways you may have never imagined. Meet the work of our vertical in our EP Automotive section or contact us directly to assist you and help you obtain the positive impact that your profits need.
* Data from the monthly Survey of the Manufacturing Industry (EMIM) of the National Institute of Statistics and Geography (INEGI) of Mexico, consolidated in the study “Dialogue with the automotive industry 2018-2024”, produced by the Mexican Association of the Automotive Industry (AMIA)
** Preliminary data for the third quarter of 2019 of INEGI’s “Quarterly Exports by Federal Entity” study.