Someone who exports and distributes consumer products into Mexico will need an end-to-end supply chain logistics machine, to secure the quality of their inventory management in a fast, accountable and cost-effective manner. 

1. Visibility and Traceability

The Mexican Secretariat for Economy partnered with the consulting firm EY for a report of the main trends of the supply chain in Mexico. It explains that visibility relates heavily with a “collaborative supply chain integration, as a supply chain that collaborates allows for visibility throughout the process. “

The report states that greater visibility would improve:

  • Supply chain traceability.
  • Knowledge about the location of inventory in remote 3pl warehousing services. 
  • Visualizing the status of shipments in transit.

Therefore, a real-time information of orders, inventory and shipments would help reduce costs across the supply chain.

However, it is highly critical that transportation logistics, warehousing and supply chain distribution services possess that level of visibility.

Mexican magazine Alimentación assures that traceability is a cornerstone for the food sector.

 “Having a quality logistics tracking system is vital to face or deal with a crisis. Thanks to these, it is possible to react to any event and protect the client, providing the customer and the brand with more confidence.”

This is highly relevant for foods, drinks, beverages and alcohol. Consumers demand transparency and accountability about the conditions of the supply chain of the products they eat or drink.

As part of the Food Tech Summit held in September in Mexico City, experts concluded that brands are increasingly communicating their production processes and that consumers are concerned that their “methods are authentic and natural,” according to Expansión.

2.  Flexibility and cost effectiveness

In 2014 KPMG surveyed managers of the consumer goods industry.  38% of people claimed the supply chain was their biggest challenge. Moreover, 45% of respondents said that speed and flexibility were their biggest priority to improve their supply chain”.

Gustavo Gonzalez, an expert in food safety, told Revista Alimentación that at the moment of selecting a method to release food shipments through customs, it’s crucial to consider costs regar ofding:

  • Spacing and cost of warehousing.
  • Quick inventory turnover.
  • Cash flow.
  • Flexible deliveries.
  • Response to consumer needs.

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How to help the consumer goods supply chain?

At a global level, the Brazilian expert in logistics Eduardo Mariath suggested several strategies to improve efficiency. One of them involves cargo consolidation in co-packing locations.

These processes:

  • Allows companies postpone packing, closer to the date of their delivery.
  • Reduces the times of delivery.
  • Avoids unnecessary stocks.
  • Provides just in time deliveries, for samples and products for promotions.
  • It reduces the number of SKU and product obsolescence. 

 

3. Hygiene and labeling 

In Mexico, foods and drinks must abide by strict health regulations, known as NOM. For instance,

NOM-051-SCFI/SSA1-2010 specifies labelling, pre-packing and presentation of all the product and health information about foods and non-alcoholic beverages, in Spanish, such as,

  • Ingredients and nutritional information.
  • Net content and fill weight.
  • Country of origin.
  • Expiration and best by dates.

If product labeling lacks this information, the exporter will need to label them at a national or bonded warehouse facility before distributing them into Mexico.

NOM-201-SSA1-2002 sets the sanitary control of water or ice products for human consumption, either in small packages or bulk size. The supply chain needs continuity, through cargo consolidation, warehousing, transportation, and distribution:

  • Written procedures for cleaning and sterilization.
  • Seal proof caps and warranties for bottles or other containers.
  • Locked security deposits to avoid third-party manipulation.
  • Isolated delivery lines, to prevent cross contamination with other products.

What challenges has your consumer goods supply chain?

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