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Volume 2, Number 6, Monday, July 16, 2007

Breaking News

Latin America Moving Up the Outsourcing Ladder

Although China and India are still the top spots for outsourcing, Latin America is increasingly giving them a run for their money.

For starters, wages in India have risen over the last 10 years. At the same time, the abundance of Spanish-speaking employees in Latin America is important to many companies, especially in the services sector.

Argentina has been particularly aggressive in seeking outsourcing jobs. The collapse of the peso in 2002 sent Argentine wages plummeting below the level paid in India and helped to attract U.S. business to the South American country.

An executive with a U.S.-based telecom firm says, "'In 1997, 100 percent of the work we did in Argentina was for Argentine companies, and that is no longer the case. We started with one site; now we have three, and we continue to expand,'' he explained.

The firm is also expanding into other emerging nations. The company recently opened its first Costa Rican ''delivery center,'' where workers provide both front- and back-office functions, and expects to begin operating another in South Africa soon.

SAP Breaks Ground in Brazil, Expects Huge Potential

German software firm SAP has opened its first solutions center in Latin America with a new facility in Sao Paulo, Brazil.

Latin America is one of the fastest-growing regions for SAP and software sales in the region grew  39 percent last year. The company's revenues for the region are estimated at just under $500 million, or around 4 percent of SAP's total sales of $12.4 billion.

The new facility will develop solutions for mid-sized companies over a basic platform provided by a SAP solutions center in Germany. The solutions are intended for the Brazilian, Argentine, Chilean, Colombian, Mexican and Venezuelan markets, and in particular for retailers, consumer products manufacturers and the utilities sector.

 

 

INTTRA Opens Florida Office to Support Latin America Growth

INTTRA, a leading global provider of multi-carrier e-commerce solutions to ocean carriers and their customers, is opening a new office in Miami, Florida, to support growth in Latin America.

With increasing adoption of e-commerce across the region, INTTRA has seen significant volume coming from Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela as well as North America. Mexico, Peru and Venezuela have proven to be the fastest growing markets, with more than 200 percent growth in the last 12 months.

INTTRA currently initiates more than 200,000 container orders a week and originates over $12 billion worth of ocean freight, representing 10 percent of all world trade.

 

Mexican Border States Shine Spotlight on Maquiladoras

Mayors from across northern Mexico have formed a new organization--the Association of Northern Mexico Border Municipalities--to push border issues higher on the Mexican government's agenda.

One issue of great importance is maquiladoras. These manufacturing operations, mostly concentrated in the border region, would take hits in profit and competitiveness from President Felipe Calderon's fiscal tax reform. Meeting participants called for changes in the new tax code. They also want to encourage domestic producers to make components for the dynamic sector.

At the same time, many of the region's chambers of commerce, which represent maquiladora factories, also have the support of cities and organizations on the U.S. side of the border.

“What helps Tijuana helps San Diego, so we expect to work together to find success,” remarked the president and chief executive of the San Diego Regional Chamber of Commerce.

 

View the current issue of tendencias by clicking here...

 

We know that your time is valuable. If you prefer not to receive the World Trader Latin America Edition e-newsletter, please click here.

Strategies & Trends

Top Firms Using Technology to Reduce Landed Cost

Global trade solutions provider Management Dynamics says new research from the Aberdeen Group, entitled "Global Trade Management Strategies: Surviving Growing Complexities in 2007," reveals the importance of technology in reducing landed costs. Aberdeen surveyed more than 200 enterprises for the study, according to which:

  • Companies that currently have import or export compliance automation are 1.4 times more likely to have reported increased customs clearance speed over the past 2 years
  • Companies that currently use a global supply chain visibility platform are twice as likely to have reduced total landed costs, lead times and lead time variability from international locations over the past 2 years

The Aberdeen research analyst who authored the study noted that, “Technology plays a critical role in providing the much-needed visibility into international orders and shipments and facilitating the management of all aspects of global trade. Based on this studys findings, Best in Class companies have used a variety of technology enablers to support GTM (Global Trade Management)." She added that, "These enablers have helped to better plan, execute, and track transactions while keeping global supply chain risks at bay.

To read more, click here.

 

Mark Your Calendar

World Trade, NASSTRAC, AST&L, ISM and NITL present the seventh of 12 webinars in the 2007 Supply Chain Management University series:

 

Lean Six Sigma Logistics

 

Date and Time: July 25th, 2007 at 1:00 pm ET

Professor: Thomas J. Goldsby, Ph.D.

University: University of Kentucky

Sponsor: C.H. Robinson 

 

Course Objectives:

      Logistics, Lean, and Six Sigma form a natural union.  Logistics is about managing inventory.  Leanis about speed, flow, and the elimination of waste.  Six Sigma  is about understanding and reducing variation.  Therefore, Lean Six Sigma Logistics embodies the elimination of wastes through disciplined efforts to understand and reduce variation, while increasing speed and flow in the supply chain. 

      This session illustrates how Logistics Flow, Capability, and Discipline can form the essence of a successful logistics strategy that yields robust processes – processes that delight customers at the lowest possible costs.

Register today, and if you're busy that day, sign up anyway. You can play back the scheduled webcast any time you like. 

Missed a previous event? No Problem! The First 6 Webinars are Now Available On-Demand!  

Visit the archive section and choose from previously held events by leading U.S. Supply Chain Management Universities, at http://supplychainwebinar.worldtrademag.com.

 

Mexico's Maquiladora Industry Conference

 

 

Where: El Paso Marriott Hotel, El Paso, Texas

 

When: August 8-10, 2007

 

For more information, visit www.mexico-now.com, or call Juan M. Gonzalez, MEXICONOW, at 877.864.8528.

Get Your Daily Supply Chain News Fix at World Trade!

 

Stay on top of daily supply chain industry news and developments with World Trade's newest e-product: "Today's Supply Chain Headlines," available via RSS feed. rss_feed 

 

Each day, the editors at World Trade peruse industry publications, Internet sites, and various trade resources to bring you the hottest news items relative to supply chain professionals.

 

Sign up today or visit World Trade for more information.

 

 

 

BNP Media
2401 W. Big Beaver Road, Ste. 700
Troy, Michigan 48084-3333
U.S.A.

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