Interviews with Industry Experts on Nearshoring: Top 10 Discussions on Supply Chain Strategies from Red Sofa Conversations
In the rapidly evolving automotive industry, digitalization and nearshoring strategies are becoming increasingly important for companies operating in North America. Here are some insights from key players in the region.
Hugo Villicaña, transportation manager for Brose North America, sheds light on the complexities of cross-border logistics and nearshoring. His expertise is invaluable as companies navigate the intricacies of regional supply chains.
Nissan is expanding its digital strategy to Brazil and Argentina, integrating digital tools to support upcoming export operations. The Japanese automaker is also looking to scale AI applications and digital twins, aiming to move faster with predictive analytics and automation.
Nissan has developed a digital solution for multi-tier supplier visibility, achieving 94% data coverage across suppliers in the U.S. and Mexico. This innovative approach allows the company to optimize domestic and cross-border logistics by identifying overlapping transportation routes.
Toyota México is investing $1.4 billion in Mexican hybrid vehicle production, reaffirming its commitment to nearshoring. However, contrary to some reports, there is no evidence of any automaker investing 1.4 billion US dollars in hybrid vehicle manufacturing at Toyota Mexico at the end of last year.
BMW is combining business divisions to make cross-functional programming decisions in its supply chain, enabling it to adapt production and logistics plans quickly during volatile times.
Anu Goel, executive vice-president of group after sales & service, Volkswagen Group, is bringing together North America's US, Canada, and Mexico vehicle logistics divisions to explore opportunities beneficial for the region as a whole.
Lizette Gracida, from Toyota México, advocates for a national master plan to improve Mexico's ranking on the Savills Nearshoring Index. She emphasizes the need to address key obstacles such as limited logistics infrastructure, clean energy availability, and complex trade facilitation processes.
Monica Garcia, GM's director of global purchasing and supply chain in Mexico, is focusing on building resilient cross-border supply chains by extending partnerships beyond tier-one suppliers.
Bocar Group, a tier-one supplier, is investing in improving transport for parts deliveries and strengthening its suppliers to compete with the growing trend of nearshoring.
Audi is using data to optimize multimodal processes in its supply chain. Dr Reinhard Baller, head of transport planning, inbound at Audi, and Roman Noack, CEO and co-founder of Helrom, are at the forefront of this initiative.
Dayan León, parts logistics subdirector at Nissan Motor Corporation, highlights the importance of trust, flexibility, and digitalization in building resilient logistics strategies for the future.
Volkswagen Group is aligning on KPIs across the region, improving systems transparency, and thinking about the North American Region (NAR) for the group.
As companies continue to embrace digitalization and nearshoring, it's clear that regional capabilities, fostering local partnerships, and monitoring regulatory environments will play crucial roles in implementing successful strategies.
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