new rules of the road in Mexico

If you’re shipping freight to or from Mexico, last year’s playbook may not do you much good. Recent changes south of the border mean some of the old rules for managing rates and protecting cargo from theft may no longer apply, say the experts at third-party logistics specialist Transplace.

Speaking at a recent symposium, Transplace Mexico’s managing directors, Troy Ryley and Jose Minarro, brought shippers up to speed on what’s happening in Mexico. Here are some of the observations they shared:

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Motor carriers are struggling with an equipment imbalance in the U.S.-Mexico trade. Although cross-border freight volumes are up overall, southbound moves lag behind northbound loadings, due in part to punitive tariffs Mexico slapped on U.S. goods in response to a NAFTA violation. As a result, trailers for northbound traffic are in short supply.

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The days of quoting point-to-point, all-in cross-border truck rates may be nearing an end, Ryley said. Now that the Mexican government has lifted subsidies on diesel fuel, some Mexican carriers are for the first time assessing fuel surcharges.

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Some Mexican regional carriers are now collaborating to manage costs and control pricing. Diversifying your carrier base, using multiple modes, and investigating methods like transloading may help insulate your operation against sharp price hikes, Ryley said.

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Cargo-theft patterns have changed now that the “Zetas” drug cartel dominates highway crime. In the past, organized rings targeted high-value goods like electronics and pharmaceuticals. But the Zetas will steal a trailer and figure out what’s in it afterward, Minarro said. “If they can sell it, you won’t see your freight again. If they can’t, they’ll just abandon the trailer.” What can shippers do to protect their cargo? Tracking technology (in the trailer, not the tractor), pre-scheduled driver-dispatcher calls, and security escorts can all help reduce the risk of theft.

More details about the presentation (as well as others from the 2010 Transplace Shipper Symposium) can be found at http://symposium.transplace.com.

inbound

forget dreamin’; try California learnin’!

The tagline for this year’s Council of Supply Chain Management Professionals (CSCMP) Annual Global Conference is “You Need to Be Here!” But for those seeking to further their education, a more appropriate tagline might be “You Need to Be Here ... Early!”

That’s because CSCMP is offering two new workshops prior to the conference, which is slated for Sept. 27–29 in San Diego. The workshops—“The ‘New’ Fundamentals of Supply Chain Management: What Matters Now in Supply Chain” and “Strategic Supply Chain Issues: Where Tactical Functionality Meets the Big Picture”—take place on Sunday, Sept. 26, at the San Diego Convention Center. Registration includes continental breakfast, all workshop materials, a networking lunch with participants from both workshops, a contact list of all attendees, and a certificate of completion.

The “New Fundamentals” course will be led by industry stalwarts (and DC VELOCITY contributors) Kenneth B. Ackerman and Art van Bodegraven. The workshop covers six key elements that affect supply chain management today: security; sustainability; diversity; strategy; relationships; and health, safety, and ergonomics.

The “Strategic Supply Chain Issues” workshop will be conducted by consultants Tom Freese and DC VELOCITY Editor at Large Steve Geary. The course includes case studies and exercises to help attendees broaden their perspective as supply chain leaders.

More details and a registration form are available at http://cscmpconference.org/program/precon-workshops.asp.

clue in your colleagues

Are you tired of explaining what a supply chain is to co-workers? Would your job be easier if colleagues in other parts of the company understood how their decisions affect distribution, logistics, and order fulfillment? If so, you might want to tell them about “Customer-Focused Supply Chain Management,” a new course offered by APICS: The Association for Operations Management.

The one-day program is geared toward professionals who support the supply chain but do not work directly in the field. The aim is to help people involved in sales, marketing, finance, operations, and other areas understand how their job functions complement and enhance global supply chain management, say APICS officials.

“Customer-Focused Supply Chain Management” will be offered through local APICS affiliates, including APICS chapters, international associates, and authorized education providers. For more information, visit www.apics.org/cfscm.