El Buen Fin and the Year-End Shopping Season Will Increase Demand for Logistics Services in Mexico by Up to 50%

The end of the year is an exciting time for businesses and consumers, marked by celebration and shopping, but also by the challenge of maintaining efficiency in the supply chain. In Mexico and many parts of the world, critical dates such as El Buen Fin, Black Friday, Christmas, and New Year pose a challenge for logistics and e-commerce companies due to the high number of orders they must handle and deliver on time. This means that companies need to optimize their processes and resources to ensure customer satisfaction.

According to Hound Express, a Mexico cross-border e-commerce leader, the last quarter of 2023 will bring a significant operational challenge for logistics companies nationwide. They estimate that logistics operations will increase by 45% to 50% during this period compared to previous months.

Bernardo Flores, Business Development at Hound Express, asserts that logistics companies must implement specific seasonal strategies in the face of exceptional demand for products and services. This includes establishing collaborative processes with suppliers and business partners to efficiently plan and execute storage capacities and volumes.

In this process, anticipation is crucial to estimate the number of employees and preventive maintenance services for vehicles and equipment that are essential to meet the peak demand of each year. According to Flores, adjusting the daily operation of companies and supply chains is equally important. This involves planning roles in different shifts, contingency strategies, risk analysis, and optimizing resources and routes to meet customer expectations.

Preparation not only involves customized strategies based on the size, resources, and type of operations of each company, but also infrastructure adjustments, such as expanding or adapting storage facilities to handle the increased package volume. In this regard, SiiLA data indicates that in the last quarter of the previous year, only 4% of packaging and transportation & logistics companies expanded their industrial facilities' Gross Leasable Area (GLA). In contrast, 2% reduced their GLA, while 96% maintained it.

In the specific case of Hound Express, the measures taken to ensure the efficiency of their logistics services during peak season include relocating 95% of their operations from the Mexico City International Airport (AICM) to the Felipe Angeles International Airport (AIFA). This has allowed them to plan optimal routes, reduce delivery times, lower costs, and improve punctuality. Additionally, they doubled the capacity of their industrial facilities in Laredo, Texas, and inaugurated new facilities in Monterrey, Nuevo Leon. Hound Express primarily serves clients in the retail industry (80%), technology (10%), home products (5%), and various products (5%).

For more information on this and other commercial real estate market topics, explore SiiLA REsource or contact us at contacto@siila.com.mx.