Aspects To Consider in The Logistics Development

There are 4 aspects to consider to develop the logistics sector in Latin America. Brazil and Chile follow Mexico in the ranking of countries with the best logistics development environment. 

Mexico has a privileged geographical position that allows companies to use the country as a logistics hub for exports to North and South America. In the same way, Brazil has the best multimodal infrastructure in South America and Chile has an advantage to distribute products that arrive through the Pacific to its neighboring countries.

How to improve the competitiveness of the rest of the countries?

To improve the competitiveness of the rest of the countries in Latin America and even reduce the logistics costs of companies, it is necessary to invest in these four aspects.

Infrastructure

The lack of road infrastructure, ports and railways in the countries seriously affects the logistics costs of companies. Some countries, such as Colombia, opted for partnerships between the government and private companies (APP) to promote the development of roads, free zones, ports and railways that connect the center of the country with the Pacific and Atlantic coasts.

By investing in infrastructure, companies that decide to consider the country as a logistics hub reduce their transportation costs and avoid overhead costs associated with delays caused by road failures.

Technology

Technology is a key player in the development of logistics. While developed countries experiment with the use of drones, IoT (internet of things) and advance in the penetration of 5G, in Latin America it is necessary to invest in technology that allows companies to have efficient logistics.

One of the biggest problems is internet access and connectivity in 100% of the Latin American territory. Today’s businesses need to have 24/7 access to information and support their operation no matter where they are in remote locations.

Professionalization of logistics
Some time ago logistics was simply an area within companies that was managed by people with knowledge of business administration or industrial engineering.

Nowadays, more and more professionals study and even specialize in logistics, which has given companies a source of innovation and countries one more reason to make logistics and customs processes more efficient.

New logistics services and solutions
As a result of the increase in the use of technology, the improvement of the infrastructure and having more trained personnel, services and logistics solutions emerged that range from the manufacturing process and inventories to the distribution and delivery process of the finished products.

Software as a service or SaaS for its acronym in English was one of the fastest growing services as it allowed transport and logistics companies to scale operations in the countries of the region very quickly.

Twnel has become a benchmark  to scale the operations of companies that operate in different countries in the region.

Creators of the concept of conversational automation, Twnel allows logistics partners such as drivers, for example, to report news and each step of the operation such as loading, unloading and deliveries from their own cell phone through Twnel messenger, the Twnel application.

Likewise, it gave companies a control tower to assist drivers who present news on the road by organizing incoming conversations through labels and leaving behind the annoying use of personal messages or phone calls.

Additionally, for the first time, it gave companies the possibility to identify the processes that must be automated and build conversational flows so that their drivers are the ones who self-manage reports of arrivals to warehouses, deliveries, barcode readings and address correction.

The integration of this type of solutions with other systems used by companies such as ERPs, CRMs and TMSs allows companies to have full control of the information on the operation in real time.

They have become the secret of companies to improve their competitiveness by reducing logistics and reprocessing costs while the governments of the countries continue to strengthen the infrastructure.

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