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Factors that will affect your operation this year and a big opportunity

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Based on the most recent challenges and current trends, the leaders of the various Supply Chains will have to face different challenges to maintain their operations and become more efficient this year. The direction of their actions will be driven by very clear trends; at maxiaNET, we believe we should be on the lookout for the following.

Uncertain macroeconomics

Undoubtedly, one of the trends that will mark the future of supply chains is linked to the global economy. Shipping costs, labor, raw material shortages, and the availability of inputs put us in check during 2020 and 2021. The situation does not seem to be changing anytime soon. 

The macroeconomic forecasts are not getting it right. For example, the U.S. Consumer Price Index predicted a 0.2% decrease in U.S. retail and restaurant spending in September of last year; however, there was an increase of 0.7%. 

The deviation in these calculations occurs because it only considers formal commerce: it is not considering what happens with informal commerce, neither in the United States nor in the rest of the world. Therefore, it might be that the economy behaves even worse than expected, or that it surprises us, and we see an early global recovery. 

Since planning must consider this uncertainty, maxiaNET recommends that producers, distributors, and transporters protect themselves from a possible price increase by calculating increases that do not affect their profits or the consumers’ pockets.

Freight consolidation in the transportation systems will continue to be

Over the next few years, and because of the recent crisis, large transportation systems will continue to consolidate; we will continue to see mergers and acquisitions in large trucking firms. 

Several industry analysts, and firms in charge of executing M&A processes, have stated on different occasions that this is an upward trend, which only benefits large freight forwarding groups. What we at maxiaNET observe is the other side of the coin: while mergers will continue as a natural process in the market, there is also an opportunity for those suppliers that provide local or regional services, serving the needs of customers who require transporting goods in specific markets of the world. 

“In our experience, this is the right time to invest in creating regional transportation options; we are already working with our partners and distributors to achieve this so that the main routes of our customers in the region are covered,” says Eric Gomez, CEO of maxiaNET.

Latin America: the opportunity for international brands

With such a turbulent region and constant changes in the internal politics of several countries, the good news is that we continue to see stable consumption of commodities. Without going any further, with our distributors in Mexico we have noticed that the producer with the best sales performance in the Central de Abastos in Mexico City is the one with a portfolio of brands that covers the essential needs of the population.

And the situation is no different in other countries. Even in economies that may seem more difficult, we are seeing a certain openness that allows these everyday goods to enter the market. We think that if the big international brands can continue to play on this playing field, they will be able to continue with their expansion plans in Latin America.

While it is true that most macroeconomic analyses draw a future of great uncertainty and few growth opportunities, it is also true that resilient companies are those that manage to find opportunities around threats. At maxiaNET we are sure of this: this has been our experience from the beginning.

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