The Logistics Significance of U.S. Companies Reshoring to Mexico

The Logistics Significance of U.S. Companies Reshoring to Mexico

mexico reshoringU.S.-based companies are increasingly reshoring to Mexico for various reasons, including logistics and supply chain advantages. These reasons point towards a shift in priorities for many businesses. Here are some of the key factors driving this trend:

Reduced Costs and Times:

  • Proximity: Mexico’s geographical closeness to the U.S. significantly slashes shipping costs compared to distant nations like China. This can be a game-changer, with transportation, warehousing, and inventory management savings.
  • Faster Delivery: Shorter distances translate to quicker transit times. This allows companies to meet customer demands faster, improve flexibility, and potentially reduce reliance on safety stock.
  • USMCA benefits: The United States-Mexico-Canada Agreement (USMCA) provides preferential trade terms for companies operating within the North American region, reducing the time spent on customs procedures.

Increased Supply Chain Resilience:

  • Reduced Disruption Risk: Shorter supply chains are less vulnerable to external disruptions like pandemics, trade wars, or political instability. This translates to smoother operations and improved risk management.
  • Greater Visibility and Control: With production closer to home, companies have improved visibility over their supply chain. This helps in quicker problem identification and faster response to unexpected issues.
  • Improved Inventory Management: Shorter lead times allow for leaner inventory management, reducing storage costs and minimizing the risk of obsolescence.

Enhanced Operational Efficiency:

  • Collaboration and Communication: Proximity fosters closer collaboration between manufacturers and vendors in the U.S. and Mexico. This facilitates better communication, quicker problem-solving, and stronger supplier relationships.
  • Quality Control: Having production closer allows for more frequent and direct quality control checks, potentially leading to higher product quality and customer satisfaction.
  • Flexibility and Responsiveness: Shorter lead times enable companies to react faster to changing market demands and adapt their production plans more quickly.

Look no further if you are seeking a logistics provider that understands U.S. and Mexico cross-border shipping. Logistics Plus has offices and warehouses across North America, including multiple locations and warehouses in Mexico and dozens more in the U.S., that can assist with virtually any supply chain challenge.

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Logistics Plus México Celebrates 15th Anniversary

Logistics Plus México Celebrates 15th Anniversary

LP-Mexico-15-Years-GIFOn the heels of the Logistics Plus 25th anniversary corporate celebration next week in Erie, PA, Logistics Plus México is also celebrating its 15th anniversary this year.

Many of the “LP México” members were able to spend some time together last week Saturday, July 24th – the actual date 15 years ago that its first in-country operations began. Francisco Tijerina, operations manager for LP México, and Jose Garza, managing director for Latin American and México, thanked the entire team for their great work and continued dedication.

Today LP México has nearly 50 employees located at offices in MonterreyNuevo Laredo, and Mexico City. LP Mexico also celebrated its recent ISO-9001:2015 certification.

LP Mexico 15 Years Photo Team

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Stay connected with LP México by following them on Instagram or Facebook.

Logistics Plus Receives CTPAT Partnership Renewal for 2021

Logistics Plus Receives CTPAT Partnership Renewal for 2021

FOR IMMEDIATE RELEASE

Logistics Plus Receives CTPAT Partnership Renewal for 2021

This is the 13th straight year that Logistics Plus has been CTPAT approved by CBP.

Logistics Plus Receives CTPAT Partnership Renewal for 2021ERIE, PA (January 6, 2021) – Logistics Plus Inc. (LP), a leading worldwide provider of transportation, logistics, and supply chain solutions, is pleased to share that the U.S. Customs and Border Protection (CBP) recently reviewed and renewed its Customs Trade Partnership Against Terrorism (CTPAT) partnership status for 2021. CTPAT is a voluntary public-private sector partnership program which recognizes that CBP can provide the highest level of cargo security only through close cooperation with the principle stakeholders of the international supply chain such as importers, carriers, consolidators, licensed customs brokers, and manufacturers.

From its inception in November 2001, CTPAT continues to grow. Today, more than 11,400 certified partners spanning the gamut of the trade community have been accepted into the program. The partners include U.S. importers/exporters, U.S./Canada highway carriers; U.S./Mexico highway carriers; rail and sea carriers; licensed U.S. Customs brokers; U.S. marine port authority/terminal operators; U.S. freight consolidators; ocean transportation intermediaries and non‐operating common carriers; Mexican and Canadian manufacturers; and Mexican long‐haul carriers, all of whom account for over 52 percent (by value) of cargo imported into the U.S.

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Adam Mook comments

“By going through the rigorous CTPAT renewal process, Logistics Plus will continue to help shippers coordinate their cross-border moves with reduced CBP examinations, front of the line inspections, and shorter wait times at the border,” said Logistics Plus Compliance Department Manager Adam Mook. “Making sure our compliance standards meet or exceed the CTPAT annual requirements confirms that Logistics Plus is committed to security and protection for our customers and the entire supply chain.”

Visit www.cbp.gov/CTPAT for instructions to complete annual reviews and to view training materials related to common CTPAT processes. Logistics Plus provides consulting services for companies seeking to become CTPAT certified and validated. For more information on these services, please contact Adam Mook via email at adam.mook@logisticsplus.com or call 814-464-1722.

CTPAT Partneship Consulting

Logistics Plus provides CTPAT and other related customs and compliance consulting services.

About Logistics Plus Inc.

Logistics Plus Inc. provides freight transportation, warehousing, fulfillment, global logistics, business intelligence technology, and supply chain management solutions through a worldwide network of talented and caring professionals. The company was founded over 24 years ago in Erie, PA, by local entrepreneur Jim Berlin. Today, Logistics Plus is a highly regarded, fast-growing, and award-winning transportation and logistics company. With a Passion For Excellence™, its employees put the “plus” in logistics by doing the big things properly, plus the countless little things, that together ensure complete customer satisfaction and success.

The Logistics Plus® network includes offices, warehouses, and agents located in Erie, PA; Akron, OH; Buffalo, NY; Chicago, IL; Chino, CA; Cleveland, OH; Dallas, TX; Des Moines, IA; Detroit, MI; Fort Worth, TX; Haslet TX; Houston, TX; Laredo, TX; Lexington, NC; Los Angeles, CA; Melbourne, FL; Nashville, TN; New York, NY; Olean, NY; San Francisco, CA; Australia; Bahrain; Belgium; Canada; China; Colombia; Czech Republic; Egypt; France; Germany; India; Indonesia; Japan; Kazakhstan; Kenya; Libya; Mexico; Netherlands; Poland; Saudi Arabia; Taiwan; Turkey; UAE; Ukraine; Uganda; and United Kingdom; with additional agents around the world For more information, visit www.logisticsplus.com or follow @LogisticsPlus on Twitter.

Media Contact:
Scott G. Frederick
Vice President, Marketing
Logistics Plus Inc.
(814) 240-6881
scott.frederick@logisticsplus.com

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The New USMCA Certificate of Origin Form and Instructions

The New USMCA Certificate of Origin Form and Instructions

USMCA MapThe United States-Mexico-Canada Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020. Parties wishing to import “originating goods” duty-free into the United States, Mexico, and Canada utilizing the preferential benefits of the USMCA free trade agreement must have a valid certificate of origin on file at the time of claim, completed by either the Exporter, the Producer, or the Importer.

They must be able to provide the certificate used to claim duty-free preferential benefits upon request of the relevant Customs authorities in the US, Mexico, or Canada. They must also be able to provide the support proving “originating goods” status that formed the basis of their certification. Penalties or fines can be issued by Customs authorities for failure to comply with these requirements.

There is currently no official, government-issued, or government-approved USMCA Certification of Origin. Per the text of the agreement, all certifications must contain a set of “minimum data elements.”

The downloadable Excel USMCA Certificate of Origin form below was created by the Logistics Plus Global Trade Compliance Team. Instructions are included in the last tab.

USMCA Certificate of Origin

Click Image to Download Template

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Examples of Project Cargo Managed in Oct./Nov./Dec. 2018

Examples of Project Cargo Managed in Oct./Nov./Dec. 2018

Project CargoThe Logistics Plus Project Cargo Team has been busy in the final months of 2018. In October, November, and December, and as outlined below, we have managed a variety of projects, including the successful deliveries of windmills, transformers, storage tanks, and more (photos included in the video below).

  • LP Mexico and Turkey helped deliver a combined cycle power plant from Turkey to Mexico.
  • LP Turkey safely delivered cyrogenic gas tanks from Turkey to South America.
  • LP Belgium safely delivered a complete windmill set from Antwerp to Greece.
  • LP successfully completed the modernization of two coal power plants.
  • LP Turkey successfully delivered a transformer from Turkey to Malaysia.

Do you need assistance with your project cargo? Contact our global team of project cargo and break bulk experts.

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