The Competitiveness and Infrastructure in Mexico

The Competitiveness and Infrastructure in Mexico

The logistic infrastructure of a nation represents one of its more relevant resources which enable the commercial exchange of good and merchandise, both inside its territory and outside it which represents one of the main motors for the inexpensive development. That is the reason a nation which counts with a better infrastructure have bigger capacity for growing and being more competitive in the international sphere (World Bank 2012). Nowadays Mexico counts with a relevant national asset on the subject of connectivity infrastructure, represented by 117 maritime harbors. Road networks that exceed 370 thousand kilometers, railways near to 27 thousand kilometers and 76 relevant airports, which along with facilities such as 49 Customs and 66 railway terminals and intermodal interaction allow the nation bear the rising volume of exchanges of external trade, which makes possible the internal distribution of goods and merchandise.

IN MEXICO

In Mexico the logistic costs are high and the bottle neck of the merchandise does not allow higher standards of competitiveness.

Nowadays, moving the merchandise represents an average of 14 per cent (PIB) for the country, while their commercial associates such as: United States and Canada, it represents 8 to 9 percent which means a lower barely profitability for the different sector.

The logistic cost for companies rises to 10 percent, however, in case of SMBs; this segment can ascend to 30 percent in its expenses which tops in a important way its development, not only in national scale, but also in international markets.
Mexico is located I the 47th position of a global scale as far as logistic efficiency is concerned in a ranking of 155 countries, which shows the backwardness that keeps in the segment, even when it counts with a meaningful potential of transportation, harbor infrastructure, commercial frontiers and an important number of commercial treaty.

These are the man errors that are made in a company on the subject of logistics which we try to avoid:

1. Not having the product on time or in an appropriate way.
2. High costs of inventories. It’s needed to reduce them. Otherwise the company has parts of its resources without generating.
3. To guarantee the production line. Any company can run the risk of having its line of production shutdown because of the lack of consumables as a result of bad logistics.
4. Conviction. Reliable logistics must reduce decreases and ant theft because it can be fundamental and important in the final process.
5. The most important one is having suppliers on the same frequency. All people who participate in the process, the railway supplier, transportation, the same shipping, the Customs agents should understand the companies’ needs, their clients in order to provide an appropriate service. If it does not exist coordination between these links, the chain will break and there will be lost in the company.

That is the reason why human competitive capital should be generated. Profiles that are experts of logistics as a specialization area and that count with an appropriate infrastructure. A third aspect would be an administrative simplification. If a company counts with an appropriate human capital developed infrastructure and a system that is reduced and efficient, all those aspects together will help t to be more competitive.

Taking into account the logistics costs that are given in other market such as: United States, more investment is being received in Mexico and in the selection process of location, it is being taking into account more and more every day. There are topics ahead, but homework is being done.