People used to joke that the three most important things in business were location, location, location. If this is true from a supply chain perspective then Latin America can make a good case for future proximity prosperity. Of course the good news is that Latin America has much more going for it than its location relative to North America. My recent Real Results article, A Fresh Look at Latin America , highlights some of the opportunities and challenges on the horizon for Latin American businesses.
A host of positive business features place Latin America in a solid international business posture. Its close proximity to North America, its rich natural resources, attractive labor costs, liberal trade policies and reputation for delivering high-quality products quickly and reliably provide a solid foundation for the long term structure of the region’s business climate. One clear example of this prowess is automotive manufacturing. Most of the large automotive brands have already invested in the region and are working to expand their production facilities in the near term. In fact, industry experts anticipate Mexico’s auto output to hit a record 2.86 million vehicles when the 2012 figures are tallied, making Mexico the eighth-largest automotive producer worldwide.
As Latin America has augmented its business profile on the international stage, it is becoming increasingly important that it adopts leading-edge supply chain practices and tools so that it can collaborate with its new global partners, compete successfully in international markets and increase profitability. In A Fresh Look at Latin America, we delve into some of the areas where the region’s businesses are looking to improve their supply chains. We also discuss some of the recent information on inventory patterns and explore some success stories. Most importantly, we encourage business leaders in the region to explore ways to improve their supply chain. Be sure to check out the Real Results article and the articles of my colleagues. As always, let us know what you think.