I remember talking to Professor Ernesto Derbez, former Secretary of Economy, about the importance of decision-making skills. He told me: "More than knowledge, you need negotiation skills, innovation and adaptability". That conversation taught me that theory is important but practice is fundamental to be an expert.
Today, the challenges facing the industry are unique and require innovative and sustainable solutions to remain competitive and meet customer expectations.
Supply chain complexity has increased due to globalization, technological evolution, nearshoring, pressure for sustainability, natural disasters, political conflicts and pandemics. As a subject matter expert, I have seen how disruption in the supply chain requires tolerant, resilient, innovative, adaptable and highly questioning professionals. So I believe that logistics and education are two vital issues for the development and competitiveness of any country or company.
My career has been developed mainly in the management of supply chain planning and in the operation of managing all the links of Coca Cola FEMSA. For the last 6 years I have been a manager in primary transportation and resource management, but I have been in the logistics sector for more than 27 years and I have seen how the industry has evolved and faced new challenges.
Global logistics is a vital industry for the economy, and Mexico is no exception.
In Mexico, logistics is especially important due to its geographic position. According to data from Mexico's Ministry of Communications and Transportation, logistics accounts for 10% of national GDP and employs more than 6 million people in the country.
Mexico has experienced significant growth in its logistics and foreign trade industry since the implementation of NAFTA 26 years ago. However, the country faces challenges in terms of regulation and standardization of the transportation sector, as well as in the adoption of renewable energies, insufficient infrastructure, insecurity and bureaucracy. Today we cannot miss the opportunity to generate advantages in Mexico by attracting industries. Meanwhile, geopolitical tensions and the trend toward regionalization are changing the international trade landscape.
At Coca-Cola FEMSA, our role is to improve the different links in the supply chain in order to optimize processes with the central objective of customer satisfaction, which is very demanding nowadays. Therefore, companies need to adapt quickly to meet changing customer needs, taking into account the local and international context.
For me, logistics is the backbone of organizations and must optimize processes and resources to support business objectives, from the purchase of inputs to the delivery of the final product.
Previously, logistics used to be rigid and had a lot of waste along the chain due to lack of integration. Today, technological enablers have enabled a more efficient acceleration, so what are the current challenges?
First, disruption and changes in the supply chain: Technology has been an important enabler to overcome this challenge, but it can also create challenges if not used strategically.
As I mentioned earlier, habits and the current context have forced more efficient and faster planning.
As the market progresses, it is necessary for the supply chain to adjust and become a more flexible and adaptable entity. With advances in artificial intelligence, demand forecasting and customer behavior prevention have improved. However, to achieve effective logistics, it is important to understand the present, predict the future, and always understand the customer context to try to maximize the value and efficiency of the chain with optimal cost and care.
At FEMSA, we have implemented technologies such as real-time monitoring of shipments, data analysis to improve decision-making, and systems integration. We have also worked on generating business continuity plans to ensure resilience in the face of difficult situations and on promoting a culture of safety to reduce operational risks.
As a second challenge, sustainability: We know that it is necessary to adopt more environmentally friendly transportation practices and reduce dependence on fossil fuels. In other countries, initiatives are underway to adopt renewable energies, but in Mexico there is still a long way to go.
There is currently social pressure for companies to maintain this objective, which today may imply being cancelable or generate prestige for a brand. It is important to know the context of each market, its infrastructure and its constraints to really ensure a sustainable and transparent chain with customers. In my opinion, not all companies are developing transparency in the sustainability of products and it should be an obligation for both industries and consumers to obtain information before making a judgment on the value of the brand, the production and the real social benefit, this is commonly known as greenwashing. For example, the case of electric cars that although they generate mobility with clean energy, their battery degrades in thousands of years. Or the case of brands such as Nike, which after being accused of exploitation, the brand acquired greater prestige for the sustainable production of some of its products.
Sustainability in companies and industries must find a balance between transparency, brand prestige and collaboration to work with these constraints. Companies must define clear objectives and measure their resources and time in order to be sustainable and adapt to the currents that demand greater value in their products.
Finally, education: As a challenge and integral solution for the creation of strategic thinking and innovative skills in logistics.
My dad used to say: "information is power" and I would add "when you know how to use it". This is the importance of having strategic skills. At FEMSA, in addition to information, we have experience, and experience is gained by making good and bad decisions and putting it in the field of organizations that also knowledge.
As mentioned, artificial intelligence is an important enabler to achieve greater efficiency in the supply chain, but it also requires people who know how to use it and leverage it effectively. Logistics experts must be prepared to think disruptively and be open to new ideas and technologies to overcome current challenges.
Therefore, education is one of the keys to logistics improvement. Universities, along with government and business, must offer programs of study, encourage research and innovation in the design of systems and processes that improve efficiency and productivity.
Logistics is not a static task, there is always room for improvement and optimization of supply chain processes. No matter how good your chain is, it can be improved.
It is important to remember that Mexico's logistics challenges are interconnected and addressing all of these challenges together could provide an opportunity for significant change in the Mexican logistics environment.
In summary, an integral solution is to understand that in these challenges lie the opportunities to develop economic, commercial and social value. Working from education with updated technological tools to satisfy social concerns.
We must focus on the future and not on the past, adopting a pragmatic perspective instead of an ideological one.
We are in the knowledge economy, it is crucial to boost education.
Adaptability to new realities and constant innovation are fundamental skills to face the challenges of logistics. We are in a march of future professionals, the use of AI tools, is to think about how to create strategies and an exercise of continuous learning focused not only to the customer, but to a geopolitical context, with foresight of the next challenges and adaptation to changes.