ALSC Mexico editor's blog: Maintaining Mexico’s supply chain edge with innovation, optimisation and flexibility

14 November

Priorities to propel Mexico’s supply chain forward

As the final day of the conference drew to a close, the last session saw Gerardo de la Torre, regional senior director of supply chain management at Nissan Group of the Americas, Lizette Gracida, senior director of external affairs and trade compliance at Toyota México, and Ian Slaven, vice president global sales vertical lead automotive at Kuehne+Nagel, define the key priorities needed to propel Mexico’s logistics and supply chain into the future.

Key takeaways

• The automotive industry desperately needs regulatory certainty, with clear rules and no sudden changes that disrupt business, particularly regarding tariffs and the USMCA review process.

• Mexico and the North American region are at a critical moment where they need to reinvent themselves, focusing on rebuilding competitiveness by collaboratively addressing challenges in critical technologies, materials and supply chains.

• The Mexican government will need to prioritise three key areas: strengthening the rule of law, developing infrastructure (including ports, roads and clean energy) and resolving non-trade issues with the US to facilitate a constructive USMCA re-negotiation.

• Automotive manufacturers like Nissan are actively working to reset their supply chains, optimise manufacturing capacity and improve resilience by implementing digital solutions, compliance mapping and strategic relocation of production facilities.

• The industry must take collective responsibility for its future, presenting a unified and strong voice to address challenges, being open-minded in negotiations, and recognising that collaboration is essential for survival and profitability.

Read the ALSC Mexico 2025 conference review to find out how Mexico can maintain its supply chain edge

ALSC Mexico 2025 highlighted the need for innovation, efficiency and flexibility if Mexico's automotive supply chain is to maintain its competitive edge.

Discussion points from key tensions

The USMCA rules of origin present a significant challenge for the automotive industry. The current rules are already the most stringent in any trade agreement, incorporating complex requirements like specific percentages of regional value content, labour provisions and North American steel and aluminium purchases. There's a critical concern that further increasing these requirements could have a non-reversible impact, potentially hurting the competitiveness of the entire automotive industry in the region.

The geopolitical tension around critical minerals and technological supply chains is creating substantial uncertainty. With China effectively "weaponising" critical minerals in trade wars, the West faces a complex dilemma. The current technological approach seems unsustainable, as developing alternative processing capabilities for materials like battery components could take 10-12 years. This has led to discussions about potentially pivoting to alternative technologies like hydrogen or fundamentally rethinking the technological strategy to reduce dependency on these critical minerals.

There's a fundamental tension between regulatory implementation and industrial competitiveness in Mexico. Sudden changes in laws and regulations, such as recent reforms to the customs law, are viewed as potentially regressive and inefficient. The panellists suggested that instead of making incremental patches to regulations, a more strategic approach would be to evolve towards a deeper regional integration, potentially creating a customs union among the USMCA countries that would align rules, reduce corruption and create a more cohesive trading environment.

Quotes from the session

"Without each other, nobody's coming to save us. This is up to us – us as an industry, us as a region," Ian Slaven, Kuehne+Nagel

"More than policy itself, what the industry needs right now is certainty, that is the magic word; we need clear rules, not sudden changes that disrupt our industry," Lizette Gracida, Toyota México

"The USMCA was meant to bring more competitiveness as a region and then be able to compete worldwide – what really happened is that the competitiveness of the region was somehow accepted, recognised, but the other guys were able to advance faster, and what is true and what is being revealed through all of these latest events is that we lost competitiveness as a region," Gerardo de la Torre, Nissan Group of the Americas

14 November

Turning localisation into a compliant, competitive and resilient supply chain

Evelin Nava Castaldi, purchasing and supplier quality director at Stellantis Mexico, shared how the company steering toward deeper local integration in Mexico as global trade dynamics shift. She revealed how the carmaker is increasing regional procurement, empowering Mexican suppliers and future-proofing its supply chain to be resilient, competitive and compliant amid new tariff and trade realities.

Key takeaways

• Stellantis has significantly increased its purchasing from Mexico, growing from 20-30% to 50%, though 10% of those purchases are currently not USMCA compliant and incurring tariff costs.

• The supply chain strategy has evolved from local to global and back, with the current goal being a balanced approach that combines local sourcing with regional and global options, especially for specialised technologies that aren't available locally.

• Achieving USMCA compliance requires deep verticalisation and transparency, meaning companies must understand the entire supply chain from tier one to tier four and work collaboratively to develop local or regional component availability.

• Mexico currently has strengths in technologies like stamping, painting and plastics, but faces a significant weakness in electronics manufacturing, which will require long-term investment and know-how to develop.

• The supply chain community plays a crucial role in problem-solving by challenging internal teams, asking questions and exploring alternative solutions, such as potentially substituting materials or changing sourcing strategies when facing challenges like material shortages.

Discussion points from key tensions

The automotive supply chain faces a fundamental tension between localisation and global sourcing. Initially, the industry expanded from local to regional to global sourcing to meet growing technological needs and leverage worldwide logistics capabilities. However, the Covid-19 pandemic exposed the risks of over-globalisation, pushing companies to reconsider a more balanced approach that combines local efficiency with global technological access. This requires carefully navigating between local cost-effectiveness and the need to source specialised components from regional or global markets.

There's also a significant challenge in developing local manufacturing capabilities, particularly in high-tech sectors like electronics. While Mexico has proven strengths in traditional manufacturing technologies like stamping, painting, and plastics, developing advanced technological capabilities requires substantial time, investment and specialised know-how. This as a long-term project that cannot be solved overnight, suggesting a strategic approach of first leveraging existing strengths and gradually building partnerships to introduce more complex manufacturing capabilities. This tension highlights the need for patient, collaborative strategies to overcome technological gaps in local supply chains.

Quotes from the session

"We as supply chain community have knowledge of everything that is happening from parts to vehicles.; we face a lot of problems that sometimes seem like not easy to solve, but we have to challenge our internal partners," Evelin Nava Castaldi, Stellantis Mexico

14 November

Increasing flexibility for vehicle logistics

In this session, panellists discussed how OEMs and logistics providers are designing and operating vehicle logistics networks that can flex to maximise capacity, reduce bottlenecks and drive competitiveness even as import, export and domestic distribution plans and demand change at short notice. Sitting on the panel were: Carlos Eudave, head of logistics at Chirey México; Bernardo Múzquiz Pezino, finished vehicle logistics manager at General Motors de México; Antonio Zepeda Torres, commercial director at CSI Group; and Sergio Gutierrez, chief operations officer at Glovis America.

Key takeaways

• Flexibility in the automotive logistics context is defined as the capacity to predict and adapt to sudden changes in the supply chain, which requires having enough infrastructure, well-trained human capital, reliable processes and versatile technology tools.

• GM has demonstrated flexibility through daily pivoting, business partner collaboration and strategic investments in AI, machine learning and business intelligence dashboards, which helped the company achieve remarkable results like reducing 2,000 hours of transactional work through automation and improving custom clearance processes by 70% in 2025.

• The transition to electric and hybrid vehicles is creating significant operational challenges for logistics providers, particularly in yard infrastructure and personnel training. This includes developing specialised infrastructure to handle different vehicle types, investing in new tooling, and training technicians to manage the unique requirements of electric and hybrid vehicles across the entire supply chain.

• The industry is looking at long-term infrastructure innovations, such as the intra-oceanic corridor in Mexico, which is seen as a potential generational game-changer that could provide new growth outlets for the automotive logistics sector in the next 20-50 years.
  

• GM's vision for 2026 is not just to adapt, but to drive change, with a focus on achieving zero crashes, zero emissions, and providing the right mobility solutions through open communication and innovation with business partners.
  

• For successful logistics today, three critical elements are needed: visibility, flexibility and communication. This involves using forecasting and IT tools for better planning, maintaining proper infrastructure and maintaining close communication to understand partners' needs and quickly address potential quality issues or challenges.

Discussion points from key tensions

The panellists strongly argued against starting discussions from a cost perspective. Instead, they emphasised that the primary focus should be on delivering vehicles with exceptional safety and quality. Only after ensuring service excellence can organisations then discuss economic adjustments. The collective goal is to deliver with service and quality, with the understanding that proper management will follow naturally.

There's an ongoing debate about how technology will impact human roles. The consensus is that technology is not meant to replace jobs, but to empower subject matter experts to make faster and more efficient decisions. The goal is to use technology to help experts digest vast amounts of data and make better-informed choices more quickly.

Flexibility doesn't mean making hasty, ill-considered decisions. The panellists stressed the importance of quickly evaluating the impact on quality and cost before taking action. The key is to be faster in decision-making while still conducting thorough analysis, measuring outcomes through metrics and KPIs, and being prepared to adjust processes rapidly.

The discussion highlighted the need to challenge traditional logistics approaches. Panellists encouraged exploring new locations, shipping methods and infrastructure solutions that might seem unconventional. They emphasised the importance of collaborative exploration, pushing limits, and being willing to try innovative approaches that could potentially disrupt existing systems for the benefit of the entire industry.

Quotes from the session

"Flexibility does not mean burning money, it means putting our client in the centre of what we do at the right cost," Bernardo Múzquiz Pezino, General Motors de México

"What we have done 10 years ago has nothing to do with what we are supposed to be doing now – it's about evolving, it's about changing, it's about being humble and also putting service first over anything else," Glovis America

14 November

Chirey’s evolving logistics journey in Mexico

Carlos Eudave, head of logistics at Chirey México, revealed how the carmaker has transformed its logistics strategy, network and operations to fuel rapid growth and competitiveness in Mexico’s automotive market. He discussed the key milestones, logistics innovations and partnerships behind this evolution, and shared the vital role logistics providers and partners will play in shaping Chirey’s next phase of logistics efficiency, flexibility and success.

Key takeaways

• Chirey has a significant global presence, with 16 manufacturing plants in Mexico and over 100,000 employees worldwide, and has been growing rapidly for 20 years.
• The company's logistics strategy is built on four main pillars, with a critical focus on  network design, awareness of external factors, strong logistics partnerships, and metrics and improvement.
  

• Chirey is innovating in its product lineup, launching nine new models this year, including super hybrid models that require significant logistical adaptations, such as specialised yard capacity for batteries and new training for maintaining vehicle quality.

• The company is working on a comprehensive global system integration that will provide full visibility across the entire supply chain, from ordering to dealer inventory, with a planned launch next year that will enable predictive ordering and performance control.
  

• Chirey is exploring AI technologies to enhance its supply chain flexibility, including using artificial intelligence to analyse external conditions, optimise shipping routes, and improve production and capacity forecasting.

Discussion points from core tensions

While flexibility is crucial for competitiveness, it's not easy to achieve. Companies must constantly be aware of external factors like political, economic and social changes that are beyond their control, requiring them to develop robust mechanisms to prevent potential supply chain disruptions.

As Chirey launches nine new models, including hybrid vehicles, it must simultaneously adapt its logistics processes to accommodate new technologies – such as creating yard capacity for batteries and supporting additional staff training. Concurrently, it is working to implement a comprehensive system integration that will provide full visibility from ordering to dealer inventory, which requires carefully confirming that its existing systems can be adapted without creating complex, fragmented workflows.

Quotes from the session

"We need to develop the soft and hard skills of our people in order to... have the strong skills to negotiate, to improve and to do so without errors," Carlos Eudave, head of logistics at Chirey México.

14 November

Syncing OEMs, suppliers and logistics providers with real-time collaboration

In this panel discussion Gabriela Karthe Figueroa, production order control manager at Volkswagen de México, was joined by Maxim Serov, regional supply chain director at Benteler | Holon, Jeff Gilbertson, ISC solutions director for the Americas at Hellmann Worldwide Logistics, and Patrick Nily, global sector vice president for automotive at Airspace, to discuss real-time collaboration and how digital tools can be used to align operations, improve visibility and drive faster, smarter supply chain decisions.

Key takeaways

• Benteler is aiming to create end-to-end visibility across its entire ecosystem, with a primary focus on ensuring reliable data parameters and expanding digital connectivity with suppliers, which will ultimately enable predictive decision-making and help anticipate potential supply chain disruptions.

• The automotive industry faces significant challenges in overcoming organisational silos, with companies often reluctant to share data and preferring to work within their own proprietary systems, which makes comprehensive supply chain integration difficult.

• Leadership is crucial in driving digital transformation, with executives setting the strategic direction and culture that determines how technology and innovation will be implemented, recognising that while AI can provide insights, human leadership ultimately makes the critical decisions.

• In Mexico, there's significant room for digital infrastructure improvement, with many suppliers still operating in semi-manual modes, using Excel files and text messages, and only about 70% having EDI connectivity (compared to over 90% in the US), suggesting a need for low-cost, easy-to-implement digital solutions.

• Logistics providers like Airspace see potential value in being integrated earlier into the planning process, which could help customers develop more cost-effective shipping solutions by offering alternative scenarios before urgent, expensive logistics become the only option.

Discussion points on core tensions

The challenge of digital transformation lies in balancing technological innovation with human capabilities. Executives recognise that while AI and digital tools are powerful, company culture, strategy and leadership remain the primary drivers of change. The human element is crucial - AI can provide information and recommendations, but cannot make fundamental strategic decisions about market expansion or core business direction. Firms must carefully integrate new technologies while maintaining the strategic oversight and nuanced decision-making that only human leaders can provide.

Breaking down organisational silos across the supply chain is difficult but necessary for progress. Companies are individually digitalising their own processes, but struggle to create meaningful cross-organisational connectivity. In the automotive sector particularly, many businesses are resistant to open integration, preferring to maintain their own systems and expecting others to adapt to their specific technological infrastructure. This challenge becomes even more complex when considering global integration, as there are numerous players like handling agents, customs brokers and various international stakeholders that need to be brought into a unified digital ecosystem. The result is a fragmented landscape where potential efficiency gains are lost due to proprietary thinking and technological isolationism.

14 November

Re-thinking vehicle distribution with control tower technology

In the first keynote session of the conference's second day, Gabriela Karthe Figueroa, production order control manager at Volkswagen de México, discussed how the automaker is increasing control and visibility of the finished vehicle supply chain through digital control tower technology. She shared how Volkswagen is digitally transforming its vehicle distribution operations, speaking about the key implementation challenges, success factors and how Volkswagen and its partners are leveraging real-time tracking, proactive risk management and data-driven decision-making to optimise performance.

Key takeaways

• Volkswagen de México has created a centralised supply chain system with real-time shipment tracking, effectively providing a corporate GPS for tracking thousands of vehicles, platforms and trucks across its entire supply chain.

• The company's control tower manages an impressive logistics operation, handling approximately 230,000 export vehicles, as well as imports from Seat, Bentley and Porsche, moving a total of 500,000 vehicles through import and export operations.

• Before implementing the control tower, Volkswagen Mexico struggled with partial information, unpredictable transport delays and slow reactive capabilities, which resulted in delivery delays to global customers.
  

• One of the most significant challenges in implementing the control tower was changing organisational mindset, particularly amongst employees accustomed to traditional reporting methods like manual Excel files.
  

Discussion points on core tensions

The most significant challenge in implementing the control tower was changing organisational mindset, which was particularly complex due to generational differences. Employees who were accustomed to creating daily Excel reports were suddenly being asked to use a system-driven dashboard approach. This transition created genuine fear amongst staff, who worried that new technological tools might render their roles obsolete. The tension here lies in balancing technological innovation with human workforce concerns and ensuring that digital transformation doesn't alienate experienced employees.

The control tower faced substantial challenges in system integration, particularly around connecting different business partners' systems. Whilst they managed a system that included yard managers, legal and security considerations frequently prevented comprehensive information sharing. These constraints meant direct connections couldn't always be established between systems due to potential vulnerability concerns. This creates a fundamental tension between the desire for seamless, real-time data exchange and the critical need to protect sensitive organisational information.

Quotes from the session

"We are not only moving cars or materials, we are moving trust," Gabriela Karthe Figueroa, Volkswagen de México

14 November

Future-proofing Mexico’s supply chain workforce

The second day of the conference in Mexico opened with an insightful and forward-looking session all about securing the future of Mexico's talent pool, ensuring that today's investment in talent, training and leadership builds a future-ready workforce and remains competitive in a rapidly changing industry. The panel for this session comprised: Luis Angel Rivera Novelo, head of logistics preseries at Volkswagen de México; Luis Bravo, vice president of Mexico operations at Wallenius Wilhelmsen; and Moe Saleh, president and CEO of Greatway.

Key takeaways

• Rather than the traditional talent development approach of taken one individual and supporting them as is deemed necessary, Volkswagen de México has implemented a unique "Circle of Talents" programme, which allows around 30 talented individuals to participate in different projects across management levels, providing them opportunities to learn diverse perspectives, choose projects according to their own skills and develop their talents.

• Greatway is incorporating more technology and AI into its recruitment and retention strategies, aiming to provide employees with tools that help them grow professionally and build their personal brand within the company.

• In preparation for potential legal changes reducing the work week from 48 to 40 hours by 2030, companies are proactively focusing on improving efficiencies, reviewing processes and exploring automation to maintain productivity.

• Logistics professionals should consider learning multiple languages beyond English, such as Portuguese, Chinese and German,  as well as invest in their own personal development – be that emotional intelligence or financial understanding – to expand their career opportunities in today's global logistics landscape.

• The industry is experiencing significant changes, making collaboration and networking amongst professionals crucial for success in the coming years.

Discussion points on core tensions

While technology and AI are increasingly important in logistics, there's a delicate balance between leveraging digital tools and maintaining the human element. Companies must integrate technology that assists rather than replaces workers, ensuring that critical thinking, problem-solving, and emotional intelligence remain central to operational success.

The automotive logistics industry faces a competitive talent landscape where retaining skilled professionals is as challenging as attracting them. Companies are developing innovative strategies like talent development programs, global exchange opportunities and clear career progression paths to create an environment that both draws in and keeps top talent.

With potential legal changes reducing the work week and the industry's inherently high-pressure nature, organisations must find ways to maintain productivity while preventing employee burnout. This requires a strategic approach to process optimisation, technology integration, and creating supportive workplace cultures that prioritise employee wellbeing.

The rapid evolution of the automotive logistics sector demands a workforce that can blend traditional operational expertise with emerging skills in data analytics, AI, and emotional intelligence. Companies are challenged to develop training programs and recruitment strategies that bridge this skills gap and prepare employees for a rapidly changing industry.

Quotes from the session

"If you're looking for something that's going to keep you on your toes, you've definitely picked the right industry to be in," Moe Saleh, Greatway

"We have to trust our people – that's one of the most important things – and make them accountable for what they are doing. That's the only way that they get that responsibility... We have to delegate and trust them to build a culture of trust in order to get better results," Luis Bravo, Wallenius Wilhelmsen

13 November

Building resilient Mexico supply chains with data, talent and trusted partners

In the closing panel of day one, focused on competitiveness and resilience in Mexico’s automotive supply chains, Mónica García, director of global purchasing and supply chain at GM Mexico, joined Hugo Villicaña, transportation manager at Brose North America, Humberto Bastida, Mexico country manager at CNW, and Richard DeBoer, vice-president of North American Strategy at Logisteed. Together they explored how OEMs, tier suppliers and logistics providers are using end-to-end visibility, digital tools, regionalised operations and stronger carrier partnerships to manage risk, support nearshoring and keep production running in an increasingly complex trade environment.

Key takeaways

• End-to-end mapping is strategic, not optional. GM is investing in full tier-N supply chain mapping, including critical minerals and raw materials, to identify hidden vulnerabilities and manage risk in real time.

• Digitalisation must be matched by local expertise. Brose, Logisteed and CNW are building central tools and TMS platforms, but stress that they only work when shaped by regional knowledge of Mexican routes, regulations and security risks.

• Nearshoring needs capable logistics as well as parts. GM is reshaping sourcing to favour regional balance, agility and flexibility, while logistics providers are mapping OEM and tier-supplier clusters and building certified carrier capacity around them to support “hot shot” and consolidated flows.

• Compliance and customs capability are now competitive levers. Tariffs, USMCA rules and changing Mexican customs practices mean suppliers need robust in-house customs and trade teams, not just outsourced brokers, to stay cost-competitive and avoid disruption.

• Talent, collaboration and transparency underpin resilience. All panellists pointed to people, continuous training, and open data-sharing between OEMs, LSPs and carriers as the real foundation for secure, reliable and responsive networks.

Discussion points on core tensions

Villicaña described Brose’s effort to build tools usable across its 60 locations worldwide, while also tailoring them to very different risk profiles in Europe, the US and Mexico. Digital visibility is only valuable if it reflects regional constraints like route security, differing legal interpretations and local infrastructure.

García stressed that GM’s sourcing decisions are no longer driven only by piece-price, but by agility, flexibility and long-term competitiveness. DeBoer added that tier suppliers often underestimate the cost they inject by slow loading processes or poor dock performance at tier-two plants, which then undermine overall cost and service. Nearshoring is creating opportunity, but it also exposes gaps in local logistics capability, certification and customs knowledge that must be filled.

With Mexico signalling new tariffs for non-FTA countries, and with evolving customs control at airports and borders, Bastida noted continued confusion over requirements and enforcement. GM, meanwhile, is urging suppliers to treat customs and trade compliance as a core discipline, warning that many rely on generic external advisors who lack automotive expertise, exposing them to unnecessary risk.

Finally, there is a structural challenge in labour and driver availability. Bastida highlighted driver shortages on both sides of the border and generational reluctance to enter trucking. CNW is responding by partnering with US-based carriers, certifying Mexican carriers and sometimes “teaching” smaller fleets how to meet OEM and CTPAT-style standards so they can participate in critical freight moves.

Quotes from the session

“One of GM's top priorities is achieving full visibility and control across the supply chain. The more control we have, the more resilient and adaptable the supply chain will be," Mónica García, GM Mexico.

“We have to recognise our talent in each one of our locations, making sure that we are developing the tools with the expertise or knowledge of each region and each local expert. It help us to create a very personalised solution or customised solution,” Hugo Villicaña, Brose North America.

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13 November

Customs compliance and tariffs reshape Mexico’s cross-border automotive trade

Giovani Bravo Vanegas, head of trade and customs compliance at GM de México, joined Jeber Nava Martínez, head of customs LATAM at Aumovio and Agustín Sustaita, chief commercial officer at D-Troy Logistics, to examine how tougher customs rules, new tariff structures and rising trade volumes are transforming cross-border automotive trade in North America. Together they described a landscape where Mexico is now the leading supplier to the US, infrastructure and systems have not kept pace, and customs compliance has shifted from a back-office task to a strategic lever that shapes network design, costs and competitiveness.

Key takeaways

The panel highlighted five key forces driving complexity at the border: Mexico’s export growth with unchanged physical infrastructure, more frequent system downtimes, higher tariffs replacing near-zero duties, additional layers of security and migration checks, and greater traceability requirements on origin and HS classification. This has real operational consequences, from the need to reconsider warehouse and DC locations to using tools such as virtual entries to avoid multiple duty payments. All four panellists stressed that resilient, scalable trade compliance now depends on robust internal risk assessments, closer collaboration between customs, logistics, tax, legal and finance teams, and strategic use of trusted trader schemes like C-TPAT and Mexico’s authorised economic operator programmes to keep flows moving.

Discussion points on core tensions

OEMs and logistics providers face pressure to cut logistics spend while investing in stronger controls, digital systems and specialist talent to withstand more audits and potential fines. 

The panel pointed to skills and capacity gaps on the government side, including customs posts staffed by military officers with limited trade experience, which adds uncertainty for compliant shippers. At the same time, new technologies such as non-intrusive inspection, sensors and automation create opportunities: if “good actors” can integrate with those systems and provide clean, standardised data, they can benefit from faster clearance while enforcement focuses on high-risk traffic.

Quotes from the session

“Mexico is the number one supplier of the US market. So this means the volume has increased but we keep the same infrastructure that we have had since many years ago," Giovani Bravo Vanegas, head of trade and customs compliance at GM de México.

“If you don't have a good or a best friend in your customs areas, please take that as a task. Go and get a best friend in the customs to know everything about your potential risk,"  Jeber Nava Martínez, head of customs LATAM at Aumovio.

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13 November

Digital transformation in Mexico’s automotive logistics with AI and real-time data

Daryl Knight of Ascent Global Logistics and Chris Cutshaw of C.H. Robinson joined Soledad de la Rosa Gopar of Volkswagen de México to explore how digital transformation is changing automotive logistics in Mexico. The discussion focused on building data infrastructure, deploying AI and agentic AI, and closing visibility gaps across multi-tier supply chains, while keeping people, skills and culture at the centre of the change.

Key takeaways

The panel agreed that transparency and high-quality data are the foundations for predictive logistics, from VW’s inbound visibility and supplier-behaviour models to Ascent’s digital freight marketplace and C.H. Robinson’s streaming, API-based architecture. Agentic AI is already being used to classify multimodal communications, read customs documents and trigger automated workflows, cutting manual “glue work” and freeing people for higher-value tasks. At the same time, OEMs and providers are still wrestling with legacy systems, blind spots at tier two and tier three suppliers, and the need for a clear data strategy that OEMs ultimately own, even when they rely on 3PLs for tools and execution.

Discussion points on core tensions

According to the panellists, OEMs should own their core data models while allowing partners and local teams to build tailored solutions and automations on top. Another friction point is the push for real-time visibility versus the practical limits of what “real time” really needs to mean for ocean, road and air flows, and how much manual intervention still sits behind supposedly live data. 

The panel also highlighted cultural and skills gaps: logistics teams must move from manual Excel reporting to low-code automation and AI-assisted work, but that requires new profiles, training and a genuine digital mindset, not just new tools. Looking ahead to tariff volatility and regulatory change, all three stressed that only networks with dynamic planning, scenario modelling and robust supplier visibility will be able to turn uncertainty into opportunity.

Quotes from the session

"I think my prediction is our interactions will be through AI built interfaces and I think applications will kind of sunset in the way of AI predicting what you want to see and who you want to talk to and then giving you ideas and options embedded in everything you do... we will set up the rules of the game so agent to agent communication can happen between us as an ecosystem and then we're kind of the puppet masters, so to speak, turning the dials and getting feedback and implementing strategies," Chris Cutshaw, vice-president of business development and market solutions at C.H. Robinson Managed Solutions.

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13 November

Volkswagen de México uses AI and data to build smarter inbound logistics

Soledad de la Rosa Gopar, inbound systems manager at Volkswagen de México, outlined how the carmaker is digitising its inbound supply chain to move from reactive firefighting to data-driven, predictive control. Drawing on her experience in purchasing, projects and logistics, she described how VW is rethinking inbound planning, visibility and collaboration using AI, IoT, advanced analytics and cloud platforms.

Key takeaways

Volkswagen de México is replacing manual, Excel-based planning and fragmented tracking with an integrated digital ecosystem connecting suppliers, the plant, logistics partners and internal customers. AI and machine learning are used to analyse large data sets, forecast demand and anticipate disruptions, while IoT sensors and GPS support real-time tracking of material flows. 

Data analytics have already delivered measurable results, including around 10% less backlog, 10% lower safety stock requirements and a 60% reduction in response and processing times, alongside higher data quality and transparency. A multi-generational team and a deliberate “digital mindset” are helping accelerate adoption and cut mistakes by about 25%, improving overall supply chain stability.

Discussion points on core tensions

De la Rosa set VW’s digital push against a backdrop of tariffs, volatile forecasts, inflation, crime-related cargo theft and rising competition from Chinese imports. Traditional inbound processes, with limited multi-tier visibility and slow manual planning, were no longer sufficient in this environment and led to excess inventory, emergency costs and cascading failures when suppliers were disrupted. 

VW must manage more origins and parts with tighter risk and cost constraints, while still reducing truck use, optimising routes and cutting its carbon footprint. The ambition is to build adaptive logistics systems that plan dynamically based on actual demand and system data rather than static forecasts alone.

Quotes from the session

"We are creating a supply chain [that is] faster, smarter and more resilient. So let's embrace together this transformation," Soledad de la Rosa Gopar, inbound systems manager at Volkswagen de México.

13 November

Nissan, VW and GWM reshape Mexico vehicle export logistics

In a joint panel, Nissan Mexico’s Alex Carrillo, Volkswagen de México’s Bernardo Taboada and GWM Mexico’s Eduardo Páez explored how their brands are scaling vehicle exports from Mexico while keeping domestic flows stable. All three highlighted that growth in global demand is forcing a redesign of outbound networks, partnerships and use of technology, especially as more capacity is needed to serve markets beyond North America.

Key takeaways

The OEMs are diversifying routes and modes to relieve pressure on congested ports and rail, using a mix of rail, truck, ocean and even containers for finished vehicles where it makes sense. Nissan is balancing 80% domestic production with exports to more than 65 countries by tailoring partners and capacities for inbound, domestic and export flows. VW is reworking its network for the global Golf programme, while GWM, as a newer Chinese entrant, is concentrating on securing long-term capacity and building weekly inventory review cycles to move fast-selling models quickly. Across the panel, strong, trusted logistics partnerships were described as the main enabler of flexibility, cost control and market expansion.

Discussion points on core tensions

The panellists underlined structural bottlenecks that threaten growth, particularly port overcapacity, limited storage space and worsening security on key corridors, which restrict night running and raise risk. They are also juggling the tension between speed and sustainable, profitable growth: building inventory to pre-empt tariffs or congestion without overstocking, and adapting networks to serve more distant markets such as Europe, the Middle East and South America. Another core tension is between lean cost reduction and investment in new capabilities, including EV-ready infrastructure, digital tools and artificial intelligence; all three see AI as promising for network design and decision-support, but agree the industry is still at an early stage and must keep people and partnerships at the centre.

Quotes from the session

• “We need to challenge the status quo of the things have been doing until now and look for very innovative solutions that are also cost effective," Bernardo Taboada, Volkswagen de México.

• “That's like the secret, having the proper partners in each of the flows, that's the key of the success,” Alex Carrillo, Nissan Mexico.

• “We arrive as a new kid on the block... we had to choose wisely those partnerships and to understand our pace, to show flexibility,” Eduardo Páez, GWM Mexico.

13 November

Volkswagen Mexico prepares Puebla plant for global Golf production

Bernardo Taboada Cortina, head of logistics planning at Volkswagen de México, outlined how the Puebla plant is being retooled to build the next-generation Golf for global markets from 2027. The project marks a “new chapter” for VW Mexico, shifting the plant from a largely North America-focused hub to a global export base, and dramatically increasing both production volume and logistics complexity.

He detailed the end-to-end impact on inbound flows, in-plant logistics and finished vehicle exports, and how Volkswagen plans to combine its existing European network with new logistics capacity, external warehousing and expanded port operations to keep the supply chain resilient and cost-effective.

Key takeaways

• The Golf, previously built in Mexico only for the NAR region, will now be produced in Puebla “for all the world”, increasing plant output by more than 50% and adding a model with premium-level complexity in terms of part numbers and variants. Today around 95% of Puebla’s production goes to North America. With the Golf, Europe will account for roughly 34% of output, with higher volumes to Latin America, Oceania and new flows to Asia, reducing dependence on a single region.

• Currently about 97% of parts come from Mexico and the US, with just 3% from overseas. The Golf will bring eight times more overseas volume, a 320% increase in container flows, over 500 new (mostly European) suppliers and 70% more part numbers.

• External warehousing will become a critical buffer. Existing in-plant infrastructure is designed for largely local supply and short stock levels. VW will add a 55,000 m² external warehouse to hold eight days of overseas stock, feeding two days of inventory in-plant via around 60 shuttle trucks per day.

• Outbound flows will shift heavily to ports. As more vehicles are exported to Europe and Asia, VW expects 23% more car carriers, about 30% more port calls, a 47% increase in port storage and a major shift of volume to ocean routes from Tuxpan and Lázaro Cárdenas.

Discussion points on core tensions

• VW must relocate Golf production from Wolfsburg while the model is already in series production and in high customer demand. That means tight deadlines, “very short error margins” and limited investment headroom, even as volume, overseas content and part numbers all surge.

• The strategy is to move around 70% of inbound volume through VW Group’s existing European logistics network, but this capacity alone is not enough. In parallel, VW must develop an additional logistics supplier network, balancing control and standardisation with the need for extra flexibility and space.

• Just-in-time production vs bigger buffers and remote stock: Puebla’s logistics have been optimised for local sourcing and minimal stock. The Golf’s long overseas lead times force VW to increase safety stock and move much of it off-site. That creates tension between lean, in-plant flows and the need for a large “virtual local supplier” warehouse feeding the line without jeopardising just-in-time delivery.

• Rail vs sea in outbound distribution: While rail will continue to serve North American customers, the Golf’s export mix means a strong pivot to ports. VW must manage the trade-off between rail’s established reliability for NAR and the need to secure additional Ro-Ro capacity, port storage and sailings for Europe, Latin America and Asia.

Quotes from the session

“We are speaking about a new chapter in Volkswagen de México. From Puebla to the world, proudly built by Mexican hands and Mexican engineers," Bernardo Taboada Cortina, head of logistics planning at Volkswagen de México.

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13 November

Mexico risks falling behind in North America’s EV shift

­Anuar Mendez, associate director, SBPT forecast at S&P Global Mobility says that Mexico is set to “lag behind” the US and Canada if there are no incentives for electrification. 

Key takeaways

Mexico risks falling behind in North America’s EV shift

Mexico is trailing the US and Canada in EV adoption as Chinese brands grow and limited incentives dampen demand, reshaping supply chains and logistics networks, say analysts at ALSC Mexico.

Megan Kelly

• Mexico is trailing the US and Canada in EV uptake, with weak incentives and few emission-standards driving the lag. 

• Analysts forecast EVs will make up only ~5% of Mexican vehicle sales by 2030, rising to ~10% by 2035. 

• The shift in Mexico’s market is being shaped less by policy and more by the rapid entry of Chinese brands, which are aggressively targeting the entry-level segment. 

• These Chinese-brand inflows are altering vehicle logistics: more China-built and China-sourced vehicles for Mexico, changing port/transport flows and increasing network complexity. 

• Without a stronger regulatory push (incentives + standards) for electrification, Mexico’s automotive supply chain will face a prolonged period of mixed powertrains and fragmented sourcing. 

Read more in the full write-up of the session here.

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13 November

Building resilient Mexico–US cross-border automotive logistics

This panel brought together OEM and logistics leaders to unpack how Mexico–US cross-border supply chains are being re-engineered under mounting disruption, tighter customs rules and rising expectations on cost and service. Magdalena Pongratz of Volkswagen de México, Ricardo Alvarez of Ryder Mexico and César García of Uber Freight highlighted how shared networks, digital control towers, customs-ready data and new transport modes are reshaping inbound flows, while stressing that none of it works without closer collaboration and clear visibility across all partners.

Key takeaways

• People first in a tech-driven supply chain: All three organisations see talent as their primary asset, with technology and infrastructure upgrades built around enabling their teams to react faster and smarter.

• Border infrastructure is being upgraded at speed: Ryder has tripled cross-dock capacity in Laredo, expanded yards and CT-PAT inspection facilities, and added new sites in El Paso and Tijuana to smooth northbound and southbound flows.

• TMS, control towers and customs data are converging: Uber Freight and Ryder are investing heavily in TMS platforms, control towers and document management systems to integrate EDI, customs and shipment data, supporting real-time visibility and compliance.

• New Mexican customs rules will raise the bar on compliance: Upcoming requirements around document “materialisation” and full traceability will demand cleaner, earlier data, tighter integration with customs brokers and more automation in document handling.

• Shared and intermodal networks are gaining ground: Volkswagen’s North America inbound tender, LTL concepts and intermodal pilots show a clear push towards shared capacity and greener rail-based flows where transit times, rail links and stakeholder collaboration allow.

• AI will be essential, but not without humans in the loop: The panel agreed that AI is mandatory to cope with volume and complexity, especially for document checking, but Ryder stressed the ongoing need for expert human validation in sensitive areas like tariff classification.

Discussion points on core tensions

OEMs still want dedicated-level service while paying shared-network rates. Ryder described operating in a hybrid model, balancing dedicated capacity for high-volume, complex flows with LTL and shared solutions across automotive and even other sectors (such as packaged food or consumer goods) to improve truck fill, sustainability and cost. Volkswagen is standardising packaging, frequencies and network design to improve truck utilisation and cost. At the same time, all three panellists emphasised the need for flexible capacity and fast re-routing during peaks or disruption, which requires carriers and 3PLs to reconfigure flows almost in real time.

The panel agreed that intermodal is a critical lever for capacity, cost and emissions, especially after US rail improvements. Yet barriers remain: transit times, rail connectivity, hub infrastructure and the need for better coordination between railroads, trucking, terminals and customs before more freight can realistically shift from road.

Quotes from the session

“This is the ecosystem. Active collaboration is the only way we can meet what the industry is asking of us," César García, Uber Freight.

“What we need is streamlined, integrated tracking and flexible capacity solutions. Only then can our processes stay agile," Magdalena Pongratz, Volkswagen de México.

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13 November

VW Mexico overhauls cross-border logistics to cut costs

Magdalena Pongratz, inbound planning specialist at Volkswagen de México, outlined why cross-border logistics is now a strategic priority for the Volkswagen Group in North America in her keynote session. Although only a small share of inbound volume flows between the US, Canada and Mexico, these lanes carry disproportionately high costs. This makes cross-border optimisation central to competitiveness, resilience and long-term cost control for VW’s regional network.

Key takeaways

• Cross-border flows are strategically critical for growth and competitive advantage. North American VW plants and suppliers are deeply interconnected, and seamless cross-border logistics is a prerequisite for regional competitiveness. 

• Small volumes carry very high costs, with just 5% of VW de México’s inbound volume from the US and Canada represents 29% of total NAR inbound logistics spend, making these flows a priority for redesign.

• VW is reshaping the regional network. The recent North America inbound tender introduced a new zip-code-level pricing structure, a redesigned zonal model, and new digital-ready partners. Launched in collaboration with Audi Mexico, Volkswagen Group of America, and Volkswagen Vosilao, it aims to reduce high inbound costs and update the North American inbound network.

• Standardisation and consolidation deliver gains. Packaging optimisation, frequency reduction and LTL consolidation are already improving utilisation, lowering costs and reducing cross-border delays.

• Intermodal transport is emerging as a key lever: VW is piloting intermodal flows for high-volume, high-weight suppliers, with the aim of cutting costs, emissions and congestion across long-haul lanes.

Discussion points on core tensions

• Strategic urgency vs operational complexity: While cross-border integration is essential, it involves difficult trade-offs: more partners, varied customs regimes, and greater packaging and transit-time constraints.

• Granularity vs simplicity: VW’s tender moved to zip-level pricing for accuracy, but this increases data complexity and demands closer collaboration with carriers to turn insight into action.

• Regional alignment vs plant-level needs: Group-wide optimisation sometimes conflicts with individual plant preferences or supplier constraints, requiring cross-functional and cross-country coordination.

• Cost reduction vs resilience: Lower frequency, standard packaging and intermodal shifts improve efficiency, but VW must ensure that these moves do not limit flexibility during disruptions.

Quotes from the session

“Supply chains do not stop at borders anymore. Acting as one connected region is essential for the Volkswagen Group,” Magdalena Pongratz, inbound planning specialist at Volkswagen de México.

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13 November

Productivity push: Creating high-performance logistics networks

Supply chain leaders from Audi, Nissan, DP World and MSC agreed that productivity in 2025 is no longer about shaving cents off a unit cost. It now means how fast and intelligently organisations can respond to disruption, manage rising complexity and work with partners to keep vehicles flowing to customers.

Key takeaways

• Productivity has been redefined For Audi and Nissan, productivity is now the ability to adapt to disruptions, maintain reliability and still create value for the business and end customer, rather than just improving cost per unit.

• Resilience rests on standardisation plus flexibility OEMs are using standard processes and “playbooks” as the backbone, with extra layers that can be activated when disruption hits, so teams can react quickly without losing control.

• AI and data are about anticipation Audi and Nissan are piloting AI tools to predict weather, bottlenecks and supply risks earlier, turning huge data flows into practical foresight rather than more firefighting.

• Partnerships and mindset are differentiators MSC and DP World stressed that agility now depends on aligned mindsets, honest capability discussions and faster, more open communication across OEMs, ports, carriers and logistics providers.

Discussion points on core tensions

• Cost vs resilience: The panel underlined that resilience costs money, but the price of not investing is higher. Productivity now means finding ways to absorb disruptions without exploding logistics budgets.

• Standardisation vs agility: Standardisation is not seen as the enemy of flexibility. Instead, stable systems and clear playbooks give the structure needed to switch quickly between predefined responses when crises hit.

• Data sharing vs confidentiality and overload: Providers and OEMs face a dilemma between sharing enough data to act quickly and protecting competitive and legal boundaries. There is also too much raw data and not enough filtered, actionable insight.

• Global tools vs local realities in Mexico: While global AI and digital solutions are being rolled out, they must be “tropicalised” for Mexican realities such as complex borders, port weather and frequent road blockages.

Quotes from the session

“Productivity used to mean cost per unit. Now it is how you adapt to change and still create value for the company and the customer," Francisco Bravo Gómez, senior director for supply chain at Audi México.

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13 November

Nissan Mexico rewires inbound logistics for agility, cost discipline and real-time control

Dayan León, deputy director for parts logistics at Nissan Mexico, set out how the carmaker has radically restructured its inbound logistics model to cope with Mexico’s rising disruptions, cost pressures and capacity constraints. Instead of adding infrastructure, Nissan focused on redesigning processes, tightening control of its network and collaborating more deeply with 3PL partners. The results: double-digit cost reductions, faster throughput and dramatic gains in visibility and execution.

Key takeaways

Nissan built its inbound transformation around six pillars, covering planning, strategy and operational redesign. Working across these pillars yielded major savings and performance gains:

• 30% logistics cost reduction across the network

• 25% increase in throughput through better yard, fleet and driver utilisation

• Significant improvements in visibility and decision-making

By increasing visibility and redesigning flows, Nissan could prevent upstream congestion and cut expensive last-minute moves.

Discussion points on core tensions

To tackle four core issues – transportation cost inflation, unnecessary expedites, yard congestion and visibility gaps – Nissan implemented six major levers.

1. A full network redesign

Using specialised modelling software, Nissan re-engineered its entire route structure, optimising flows and eliminating redundant lanes. This cut route mileage by 28%, reducing the number of trucks needed on the road.

2. Expanding and internalising the truck fleet

Nissan now operates about 160 company-run trucks, enough to control the most critical lanes directly. This allows real-time decision-making when bottlenecks appear and ensures priority loads move without delay.

3. A fully integrated visibility platform

Built with external partners, the new system gives real-time updates on ocean and land shipments, enabling teams to anticipate delays rather than react to them. Decisions can now be made instantly, with accurate data instead of assumptions.

4. Faster trailer and yard operations

By redesigning workflows inside the plant, Nissan reduced truck dwell time by 93%.

Trailers now “arrive and leave within minutes”, León said – something once viewed as impossible. The result: Nissan needs fewer yard assets and fewer parked trucks, freeing up capacity and eliminating bottlenecks.

5. More productive drivers and happier teams

Driver utilisation has risen sharply. With better routing and faster turnaround, drivers complete more trips in the same time and avoid idle hours at congested yards. “Keeping drivers happy” is now a core KPI for Nissan’s inbound operations.

6. A deeper engineering partnership with 3PLs

Nissan shifted from transactional contracting to collaborative engineering with logistics partners. Joint problem-solving, shared data and co-designed processes have produced smarter solutions and improved execution across the plant.

Nissan’s inbound transformation delivered substantial improvements:

• Expedites and NERFs cut by 90%

• CPU (cost per unit) decreased by 30%

• 12% throughput improvement in collaboration with 3PLs

• 40% reduction in logistics manpower, with the same volume delivered

• Dock fulfilment increased by 40%

• Truck dwell time reduced by 93%

For Nissan’s finance and production teams, these are tangible gains: fewer firefights, smoother material flow and significant savings reflected in quarterly reports. Finally, León emphasised that Nissan cannot execute this strategy alone, needing the right partners and the right trust.

Quotes from the session

“Communicate well. Give feedback. Receive feedback. Work together. The right partnership makes the whole network more efficient, and when we are efficient together, everybody wins," Dayan León, deputy director for parts logistics at Nissan Mexico.

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13 November

Audi México puts productivity and partnership at the centre of supply chain strategy

Francisco Bravo Gómez, senior director for supply chain at Audi México, set out in his keynote how the carmaker is reframing productivity as the decisive factor for supply chains in an era of constant disruption, regulatory upheaval and rising costs. His message to logistics partners was that productivity is a condition for survival and can only be achieved through tighter collaboration, smarter processes and faster decision-making.

Key takeaways

Gómez said Audi’s supply chain is now more productive than it was in 2021, a result that has required a deliberate overhaul of processes and performance indicators. That improvement has been driven by a group-wide initiative across Audi’s global plants. The brand has gathered more than 250 productivity ideas and best practices from different sites, including Mexico, and shared them across the network. The goal is to standardise where it makes sense, benchmark performance between plants and raise the overall productivity bar.

However, he stressed that Audi cannot do this alone. He said that in many cases, logistics and supply chain partners “know us better than we do” and see weaknesses or opportunities that internal teams miss. Without genuine partnership, he argued, the brand will not be able to sustain productivity gains in the long term.

For Audi, the first response has been to link supply chain strategy tightly with overall production and brand strategy. A clear direction from the top for production, the brand and then for supply chain, provides the framework for all plants to follow.

Bravo Gómez outlined several pillars of Audi’s ongoing supply chain reorganisation.

• Digital supply chains: Audi is investing in digital tools and platforms to gain end-to-end visibility, support faster decisions and reduce manual effort. Digitalisation is not an end in itself but a means to react more quickly and consistently to disruption.

• Stable production: Even with constant shocks, maintaining a stable production programme is a central aim. That entails better planning, buffering and risk management up and down the supply chain.

• Closer sourcing: Audi is looking to source more components nearer to its plants where appropriate, but Bravo cautioned that localisation has to apply to complete supply chains, not just a single tier or part number. If critical parts remain far away, the overall risk and cost profile does not fundamentally change.

• Integration of new tools and processes: New technology, data and methods must be integrated into daily work, not piloted in isolation. Productivity gains will come from combining new tools with redesigned processes and upskilled people.

Underpinning all of this is a sharper focus on value creation. Supply chain decisions are expected to contribute both to short-term financial results and to long-term competitiveness, including investments that will make operations more sustainable and resilient.

Discussion points on core tensions

The speed and breadth of regulatory change is a major challenge. In Mexico and in Audi’s export destinations, new requirements are emerging around environmental performance, carbon, digital security and documentation. Supply chain and logistics teams now have to “speak another language”, he said, learning the vocabulary of legal compliance and IT alongside that of OEMs, regulators and internal business stakeholders.

Looking ahead, Bravo Gómez argued that the biggest challenge is not the technology itself but the human mindset. Supply chain organisations increasingly consist of younger employees who must understand that change and uncertainty are now the norm, not the exception. They need to be ready to adapt faster than previous generations ever had to, while still operating within structured systems and standards.

For Audi México, success will depend on three elements working together.

• Central steering and standards to define the rules of the game and ensure consistency.

• Local flexibility and resilience to respond to location-specific disruptions and opportunities.

• Deep collaboration with business partners to co-create solutions, share information and align incentives.

Quotes from the session

"We need to understand that we need to change, we need to be flexible, we need to adapt ourselves at the speed that we were never able to achieve in the past. And last but not least, you guys, our business partners, we need to improve communication, we need to improve the collaboration, we need to improve the possibility to do better business together. Because if we are not successful together with you and if you are not successful together with us, this partnership will not work and we cannot be productive without the other," Francisco Bravo Gómez, senior director for supply chain at Audi México

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13 November

OEMs and logistics providers push for real resilience and ‘real’ digitalisation in Mexico

In a joint panel, BMW, Volkswagen, DSV and Trayecto agreed that the era of purely cost-optimised supply chains is over. The new focus is on resilience, diversification and genuine digital transparency, with closer collaboration across OEMs and logistics providers to cope with volatility in Mexico and across North America.

Key takeaways

Picking up on keynote presentations from BMW and Volkswagen, David Resetar, executive vice-president and global automotive vertical lead at DSV, said recent crises had exposed how dependent freight forwarders had become on legacy flows and modes. Heavy reliance on traditional air freight lanes for German OEMs has been sharply disrupted, leaving providers themselves facing resilience challenges.

Resetar said DSV’s response is to diversify its product structure across road, contract logistics, customs and visibility services, so the business is less exposed to swings in any single mode or lane. Internally, the company is investing in what he called industrialisation of its own processes, using digital tools and integrating networks as it combines with DB Schenker. The aim is to be more “plug and play” for OEMs, reducing onboarding complexity and enabling customers to swap in and out providers more easily as their networks change.

Trayecto’s chief operating officer, Victor Salazar, said Trayecto now actively plans for shocks such as fuel shortages, prolonged border closures and increasingly frequent road blockades, as well as longer dwell times and congestion at ports. The objective is to be prepared for both “peaks and valleys” in demand and disruption.

Asked whether resilience is reshaping KPIs and cost priorities, Peter Koltai, senior director of production control and logistics, Volkswagen de México said the core metrics remain unchanged. Plants still need full supply to meet production targets and must still keep or reduce overall costs. What has changed is the intensity and frequency of optimisation.

Areas previously reviewed every three to five years are now under continuous scrutiny, he explained. Contracts signed in very different market conditions, particularly in the Mexican transport sector, are no longer aligned with today’s prices or realities. Even cost buckets that once seemed marginal are now monitored and renegotiated with the same discipline as large, high-profile contracts. The result is a more granular approach to optimisation. Volkswagen accepts that some resilience measures, such as dual sourcing or redundancy, raise costs in specific areas. The task is to offset these increases elsewhere and protect the total cost base. That requires skilled, motivated teams and a mindset shift towards deeper, ongoing analysis of operations.

For BMW Group Plant San Luis Potosí, Raúl Gamboa, head of logistics, production control and production systems said the ultimate commitment is to deliver highly customised vehicles to customers on time and in full. 

Gamboa said BMW is seeking ways to generate efficiency gains “faster and with minimum effort” through in-house digital tools and closer collaboration with logistics partners. Localisation is an important strategic goal for the group, but until localisation levels are sufficient, BMW must still optimise the cost of overseas supply while also improving outbound efficiency to final markets.

Discussion points on core tensions

Resetar noted that conversations around tariffs and trade policy have shifted decisively in the past months. Where some OEMs previously adopted a “wait and see” attitude, localisation is now happening in practice. He cited an OEM supplier event where the clear message was “buy where you build, build where you sell”, reflecting a broader trend.

Salazar warned that Mexico’s regulatory environment is tightening in ways that directly impact logistics performance. Authorities are enforcing the “complemento carta porte” documentation requirements more strictly, including deeper inspections at checkpoints and closer checks that cargo matches paperwork. 

Both OEMs and logistics providers stressed that digitalisation only adds value when it delivers actionable transparency. Gamboa reiterated his dislike of “fake digitalisation”, where systems exist but do not truly connect stakeholders or reflect reality.

Volkswagen, which operates with older legacy systems in Mexico and a tighter digital budget, is pursuing a different but complementary track. Koltai described a large-scale data solution that aggregates daily inputs from suppliers and logistics service providers: waiting times at loading, time off-schedule, unexpected deliveries and more. Cross-functional teams from logistics, purchasing, production and quality review this data every day to detect deviations early, visit suppliers on site and intervene before problems escalate. 

On the provider side, Trayecto is investing in safety and productivity technology, including AI-enabled cameras that detect driver distraction or fatigue and trigger protocols via a safety control tower. 

DSV, meanwhile, is deploying AI and automation across its network, from camera-based gate and drone inventory systems to predictive and prescriptive tools in control towers. 

Quotes from the session

"The road blockages that you see in Mexico has not only [been happening in] the last weeks, this has unfortunately become a normal thing that conflicts between locals, and some authorities are hijacking the publicity and also the industry, roads are closed and basically you have an impact on the factory or you have additional costs for additional transportations. I don't see a solution yet," Peter Koltai, senior director for production control and logistics at Volkswagen de México.

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13 November

BMW San Luis Potosí turns digital innovation into supply chain resilience

Raúl Gamboa, head of logistics, production control and production systems at BMW Group Plant San Luis Potosí, set out how the carmaker is using digital tools, new operating models and global collaboration to reshape its supply chain in Mexico and across the BMW network, while preparing the plant for the next generation of electric vehicles.

Key takeaways

Gamboa framed BMW’s supply chain transformation around four priorities that guide the strategy in San Luis Potosí and the wider group.

• Electrification remains the biggest structural shift. The plant is preparing to build BMW’s future electric products, which will bring new technologies, new suppliers and new flows.

• Sustainability and resource optimisation are non negotiable. Even amid shortages of raw materials and components, the plant is working to remain one of the most sustainable in the BMW network, in close alignment with suppliers and logistics partners.

• Digitalisation and innovation have moved from pilot status to core capabilities. For San Luis Potosí, digital tools are no longer add ons, and instead are integral to daily operations and to managing volatility.

• Volatility and flexibility are treated as part of the new normal. Regulatory shifts, political uncertainty and global crises cannot be eliminated, so the plant is structured to absorb and adapt to them.

In Mexico alone, BMW now works with more than 250 suppliers, serving San Luis Potosí and major plants such as Spartanburg in the US and manufacturing sites in the UK, including Mini and Rolls-Royce. The maturity of the Mexican supply base, Gamboa underlined, is therefore critical far beyond the country’s borders.

Discussion points on core tensions

BMW offers more than ten billion possible vehicle variants, with customers able to change certain configuration options up to seven and a half days before their car is built. To support this, San Luis Potosí relies on just in time and just in sequence delivery, with some components arriving as little as two hours before assembly.

This mass customisation model collides with the reality that more than 60% of components for the plant currently come from overseas, with only 40% sourced in North America. That makes compliance with the USMCA trade agreement particularly demanding and magnifies the impact of global disruptions.

The group’s wider strategy includes broadening its product portfolio, advancing technology across combustion engines, plug in hybrids and future hydrogen solutions, and developing a resilient and diversified supply chain. BMW is working to better align plant requirements with the capabilities and commercial models of carriers, port operators and other partners, rather than treating logistics as a fixed external constraint.

For Gamboa, genuine transparency is a cornerstone of resilience. He cautioned against what he called “fake digitalisation”, where tools exist but do not deliver actionable insight. Instead, San Luis Potosí has built and deployed digital applications designed around concrete operational problems.

Digitalisation is also extending to outbound logistics. BMW is about to launch an AI-based tool that will recommend the most efficient way to deliver vehicles to final customers. The system will weigh options across vessels, rail and truck, optimising both transit time and cost. Early forecasts suggest that it could cut distribution costs by more than 50%.

Finally, Gamboa highlighted a global project to standardise packaging and returnable containers. BMW is integrating lessons from plants worldwide to create a single family of container designs that can serve multiple sites and component types. This aims to improve utilisation, simplify flows and reduce waste across the network.

Quotes from the session

"We are redesigning our supply chain in order to recoup with the necessity of bringing technology from other locations around the world. We are now in the process of nomination for a lot of tier-1s that are planning to localise within the North American region," Raúl Gamboa, head of logistics, production control and production systems at BMW Group Plant San Luis Potosí.

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13 November

Volkswagen reshapes its Mexican supply chain for resilience

In the opening keynote at Automotive Logistics and Supply Chain Mexico 2025, Peter Koltai, senior director for production control and logistics at Volkswagen de México, set out how the carmaker is reengineering its Mexican supply chain in response to a new era of disruption, while doubling down on the country’s strategic role as a production hub for North America and beyond.

Key takeaways

Koltai began by underlining Mexico’s importance to the global industry. The country has become the world’s fourth largest vehicle exporter, with nearly 3.9m light vehicles shipped in 2024. 

At the same time, Mexico is benefitting from what Koltai described as a nearshoring momentum. Manufacturers and suppliers from Europe and Asia are increasingly looking to Mexico as both a manufacturing base and a growing market, reinforcing its role as an automotive hub.

The system until 2020 was highly efficient but also fragile. “We have prioritised the cost saving and the lean operations at the expense of resilience and flexibility,” Koltai said. The events of the past few years forced Volkswagen, along with the rest of the industry, to rethink that balance.

Discussion points on core tensions

Within the Volkswagen Group, Koltai said, this reassessment has led to four main shifts, the first and most visible being a move from pure efficiency towards resilience.

In practice, that means pivoting from globally stretched supply chains to more national and regional sourcing, in line with Mexico’s wider trend toward nearshoring and localisation. 

Volkswagen de México has a long history in the country, dating back to 1964, and now operates two plants. Puebla is the main vehicle factory, while an engine plant in Silao supplies powertrains. In 2024, production in Mexico exceeded 380,000 vehicles and the company passed the milestone of 40m vehicles built in the country.

Most of the parts used to build VW brand vehicles in North America are sourced from Mexican suppliers, while the bulk of vehicle sales are in the US and Canada rather than Mexico itself, increasing the importance of robust logistics.

One of the most visible changes has been the reintroduction and expansion of safety stocks. Where inventories were previously driven down to the minimum, VW has had to accept higher buffers as a price for continuity.

Koltai pointed to recent vessel delays from South America of up to four weeks as an example of the kind of risk that no OEM can simply absorb. Similar disruptions have affected shipments from Europe, with vessels overtaking one another and arriving in unexpected sequences or at different ports than originally planned. In response, Volkswagen has redesigned many of its supply chains and increased safety stock to cover these uncertainties. The shift reflects a broader recognition that volatility in ocean freight, port operations and inland transport is now a structural feature of the environment.

Supplier visibility has become another central pillar of VW’s logistics approach. Koltai described a daily risk modelling process that pulls data from suppliers every day to detect problems before they hit the assembly line. The OEM is also starting to use artificial intelligence to analyse historical data, identify patterns and predict the impact of different events on the factory. The goal is to move from reacting to disruptions to anticipating them.

Crucially, Koltai stressed that visibility rests on supplier collaboration and trust. Long term partnerships with logistics providers, including port operators in Veracruz, trucking firms and in-house logistics specialists, are a key asset. Open communication with these partners, he said, gives Volkswagen the ability to react quickly when processes deviate from normal and to restore stability faster.

Dual sourcing has become another important tool in the carmaker’s resilience strategy. When one supplier struggles, the company now moves quickly to open a second source.

Quotes from the session

"Our message is logistics toward the future. We trust in the location of Mexico. We build on it also and we are a producer with a long tradition already in Mexico and very happy looking for the future for further projects here to produce," Peter Koltai, senior director for production control and logistics at Volkswagen de México.

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13 November

Maintaining Mexico’s supply chain edge amid disruption

Over two days in Mexico City, Automotive Logistics and Supply Chain Mexico 2025 is bringing together industry leaders to examine how Mexico can protect and strengthen its strategic role in North American and global supply chains through innovation, optimisation and flexibility.

Opening the conference, Christopher Ludwig, chief content officer at Automotive Logistics, set out the theme for the event, 'Maintaining Mexico’s supply chain edge with innovation, optimisation and flexibility' and framed both the strengths and the pressures shaping the country’s role in automotive logistics.

Key takeaways

He underlined that Mexico starts from a position of real advantage. Geography remains its most obvious asset, with proximity to major markets in the US and access to both Atlantic and Pacific coasts. Decades of supply chain integration across North America, a network of free trade agreements with other regions, a large and skilled talent pool and competitive, efficient labour have all helped to embed Mexico as a strategic supply base for the global industry. These fundamentals do not disappear overnight and continue to make the country highly attractive for manufacturing and logistics investment.

However, Ludwig stressed that no advantage is guaranteed. A series of external shocks and structural shifts is already eroding parts of this competitive edge. Geopolitical tensions and events such as semiconductor shortages have exposed vulnerabilities that individual firms cannot easily control. At the same time, there are domestic and regional frictions that the industry can and must address. Delegates were urged to use the conference to speak openly about these pain points and to focus on practical, collective responses.

Discussion points on core tensions

Operational bottlenecks were high on the list. Ludwig pointed to inefficiencies in customs clearance that create delays and backlogs, and to security issues that continue to affect parts of the network. Performance can vary widely even within a single port, where different terminals may show sharply different productivity levels. Companies need options and contingencies, while the sector as a whole must present a united voice to authorities to push for faster, more secure and more predictable border and port processes.

Trade policy shifts are adding another layer of complexity. Ludwig highlighted how the mix of tariffs including measures such as section 232 and the patchwork of exemptions has created a constantly shifting environment for importers and exporters. The USMCA remains central in mitigating some of these costs, whether through higher North American content or tariff waivers on qualifying parts, but understanding how to use such tools is no longer straightforward.

The upcoming renegotiation of USMCA will be a critical turning point. Requirements on regional value content could rise or rules could change more fundamentally, with direct implications for sourcing strategies across tiers. Ludwig suggested that this will further increase the need for end-to-end supply chain visibility and mapping, beyond tier one suppliers to the full tier-n network, to manage both compliance and risk.

Mexico is also feeling the impact of changing trade with China and other import sources. The local market has seen a sharp rise in vehicle imports from Chinese brands and from other OEMs shipping from China. Ludwig warned that new measures could affect up to 40% of imported vehicles and materially change the competitive landscape. That will demand agility in sourcing, routing, pricing and inventory strategies.

Quotes from the session

"We're fully optimistic that in and amongst all this change and disruption, there is every opportunity for this industry and particularly this audience to to be on top of that, work together and grasp those opportunities," - Christopher Ludwig, chief content officer, Automotive Logistics.

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 11 November

Automotive Logistics & Supply Chain Mexico

11-13 November | Mexico City, Mexico

What to expect at ALSC Mexico 2025!

We're back in the Marquis Reforma Hotel, Mexico for the 11th edition of ALSC Mexico, and we're gearing up to hear how supply chain and logistics leaders from OEMs, suppliers and tech partners are exploring resilience, digitalisation and trade policy shaping the future of automotive logistics.

From redesigning logistics networks and fast-tracking digital tools and AI integration to rethinking sourcing, trade and localisation strategies, ALSC Mexico will explore how the industry is staying ahead of uncertainty over tariffs and trade dynamics, rising costs, shifting regulations, and global disruptions, all while building smarter, faster, and more flexible operations across the region and beyond.

There's still time to register here!