Adriana Romo, Trade Compliance Manager at UPS Mexico, Emphasizes the Importance
Querétaro, Qro. The digitalization and automation of logistical processes are crucial for Mexico’s automotive industry, according to Adriana Romo, Trade Compliance Manager at UPS Mexico. Facing industry challenges and increasing consumer demands, Romo stresses that digital transformation of supply chains is no longer optional.
Why Digitalization Matters
The automotive industry requires platforms and tools that enable product traceability for more efficient logistical decisions. Romo explains, “Some of these tools that help achieve better logistics in the industry include real-time visibility platforms. As a consumer or supplier, you need to know where your shipment or part is located; you require a tool that integrates all your logistical partners, such as suppliers, customs brokers, transporters, warehouses, and others into your supply chain.”
Intelligent Inventory Management
Romo also highlights the necessity of intelligent inventory management to minimize service disruptions. “Manual management is outdated; it needs to be automated, integrating sensors, artificial intelligence, and sophisticated software that optimizes your logistical network. These tools help avoid service interruptions,” she adds.
Benefits of Digital Traceability
With digital traceability, companies can identify components from origin to the customer. Romo mentions that big data and artificial intelligence (AI) tools facilitate these processes. “The benefits of having big data with AI include predictive analysis on industry reactions, demand forecasting, and identifying necessary parts. Route optimization tools help the industry avoid service disruptions,” she explains.
Increasing Competitiveness
Romo asserts that technology in logistical processes is essential for enhancing company competitiveness. “Up to 74% of logistics companies already use AI systems,” she points out. These tools also aid in diversifying supplier strategies, seeking domestic and international alternatives while reducing tariff risks.
Relocation Trend
The relocation trend has influenced automotive industry companies to search for suppliers, according to Romo. “Many sectors in the Bajío region are crucial, including the automotive industry. Despite tariff challenges, we aim to assist in developing strategies for growth,” she concludes.
Key Questions and Answers
- What is the significance of digitalization in the automotive industry’s logistics? Digitalization and automation are crucial for real-time visibility, intelligent inventory management, and minimizing service disruptions. It also enables traceability of components from origin to the customer.
- Why is traceability important for logistical decisions? Traceability allows the automotive industry to make more efficient logistical decisions by knowing the location and status of shipments, parts, and integrating all supply chain partners.
- How does AI contribute to the automotive industry’s logistics? AI tools, such as big data and predictive analytics, help forecast industry reactions, demand, and necessary parts while optimizing routes to avoid disruptions.
- What role does technology play in enhancing competitiveness? Technology in logistical processes, including AI systems, is essential for increasing company competitiveness and aiding supplier diversification strategies.
- How does the relocation trend impact the automotive industry? The relocation trend has prompted automotive companies to seek new suppliers, driving growth and adaptation strategies in the industry.
