Mastering Mexico's Supply Chain Unpredictability: Insights from Mauro Rodrigo González

Mastering Mexico’s Supply Chain Unpredictability: Insights from Mauro Rodrigo González

12/11/2024
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At the recent Automotive Logistics and Supply Chain Mexico event, Mauro Rodrigo González, Ascent’s Chief Commercial Officer and President of Mexico, shared valuable insights on navigating the complexities of Mexico’s supply chain landscape.

The panel, titled “Mastering Mexico’s Supply Chain Unpredictability,” addressed the current challenges, future opportunities and the critical role of technology and collaboration in overcoming these hurdles. Below are the key takeaways from Mauro’s speaking points.

Watch the full panel discussion on-demand here.

Leveraging Technology to Reduce Risk

Mauro emphasized the importance of using technology and data analytics to tackle the challenges of an unpredictable supply chain. While he recognized the power of these tools, he also highlighted their limitations, especially when it comes to forecasting hard-to-anticipate disruptions.

“Technology and data analytics are not the future; they are the present. But what is really important is how to use it,” said Mauro. He stressed that the effectiveness of technology lies in how well it’s integrated into the day-to-day operations of logistics, production and customer communication.

In his view, it’s not just about predicting future events but also being prepared to act swiftly when things go wrong. “It’s very important, the preparation and the anticipation, making sure that not only the communication with the different stakeholders within the company but also with production, sales, suppliers and customers, is clear,” Mauro noted. He added that having contingency plans in place is essential for responding quickly to unexpected disruptions.

Investing in Infrastructure for Growth

Mexico has emerged as a critical hub in global supply chains, and its potential continues to grow. Mauro believes that by addressing key infrastructure challenges, the country is well-positioned for even greater success in the future.

“The biggest challenge Mexico faces is how much the country will invest in infrastructure, technology, regulation, security and energy. I’m sure that Mexico will continue investing and growing in the way that we need. There is no turning back,” he said. According to Mauro, geopolitical forces are pushing Mexico to become a more integral part of global supply chains, and this shift is already impacting Central America. He predicts that “sooner or later South America will follow us,” emphasizing the broader trend of nearshoring and regionalization.

However, the country must tackle infrastructure gaps, including a shortage of drivers and customs clearance inefficiencies. “We are talking about volatility. These are the kinds of things that get out of control of analytics,” Mauro explained. Working together across sectors—public, private and educational—will be key to ensuring Mexico is ready to capitalize on its opportunities.

Managing Weather-Driven Disruptions

Extreme weather events have become a major source of disruption in global supply chains, and Mauro highlighted how Ascent has adapted its operations to respond. “We shine when there is a disaster with premium freight,” Mauro shared, referring to the company’s expertise in handling time-critical logistics during emergencies.

He shared an example from this year when a border closure created bottlenecks for customers. Ascent used its visibility and forecasting tools to reposition its fleet, guaranteeing timely deliveries despite the disruption. “We anticipated potential bottlenecks and moved part of our fleet to the border to expedite cargo,” he said. By combining multiple sources of data, such as weather forecasts, carrier reports and customer needs, Ascent makes informed decisions and mitigates disruptions before they escalate.

To further enhance its response to disruptions, Ascent has developed new solutions like Fast Boat to alleviate port congestion and expedite shipments. This flexible approach, combining sea and air freight options, allows the company to better meet the urgent needs of its customers.

Building Resiliency Through Strong Partnerships

The need for robust partnerships has never been more critical, especially in times of disruption. Mauro highlighted how Ascent works closely with customers to understand their strategies and pain points. By aligning priorities and anticipating potential hiccups, Ascent helps customers maintain continuity in operations, even in the face of uncertainty.

“We try to holistically understand the strategy and problems of our customers and make sure they are saving money overall by helping them achieve efficiencies,” Mauro explained. For Ascent, this means being proactive in identifying areas of vulnerability in a customer’s supply chain and tailoring solutions that minimize downtime and unnecessary costs.

Adopting AI and Enhancing Data Security

As the supply chain landscape evolves, so too does the role of artificial intelligence (AI) in logistics. Mauro spoke about how Ascent is exploring AI to enhance communication and operational efficiency. For example, the company uses AI to streamline documentation, create alerts and respond to customer queries faster. This improves operational processes and allows logistics operators to engage more strategically with customers.

However, as AI plays an increasingly significant role, data security becomes vital. Mauro noted that cybersecurity remains a growing concern, especially in cross-border logistics. “It’s important to make sure the entire ecosystem complies and shares data securely to protect our customers,” he emphasized.

Addressing Security Risks in Mexico

Security is a pressing issue in Mexico, particularly when it comes to logistics operations. Mauro shared how Ascent has developed a centralized security center with a mirror operation between the U.S. and Mexico to address this challenge. This system uses advanced technology and automation to track both the cargo and the equipment in transit.

“Understanding with whom you are working and having protocols in place for planning and reacting to security incidents is crucial,” Mauro said. With Mexico’s security landscape becoming more complex, proactive measures—such as evaluating potential risks, adjusting routes and working with authorities—are essential for protecting shipments.

Priorities for Building a Resilient Supply Chain in 2025 and Beyond

Looking ahead to 2025, Mauro outlined Ascent’s key priorities for building a more resilient supply chain. He stressed the importance of understanding customers’ evolving needs to anticipate challenges and provide better solutions. “We need to be close to the customer, understand their strategy, where they want to go and where their pain points are,” Mauro said.

Aligning Ascent’s strategies with customer needs, making synchronized investments and preparing for future challenges will be crucial as Mexico continues to develop its supply chain infrastructure. With a focus on resilience and collaboration, Mauro is confident that Mexico is well-positioned for continued growth in the logistics sector.

Through technology, strong partnerships and forward-thinking strategies, Ascent is ready to navigate the unpredictability of Mexico’s supply chain and help its customers succeed in the years to come. Learn more about our Mexico logistics and cross border shipping solutions today.

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