Consolidating cargo makes the difference between surviving and dominating the Mexican logistics market. With 400 new foreign companies projected to establish operations in Mexico by the end of 2025, the ability to efficiently group shipments from multiple suppliers determines which logistics operators will capture the most value from the nearshoring phenomenon.
The new paradigm of consolidation in Mexico
Demand for industrial space linked to nearshoring exceeded 2 million square meters at the end of 2024, representing a 5% increase in commercialization compared to the previous year. This explosion requires a complete reengineering of traditional cargo consolidation models. The Mexican Association of Private Industrial Parks (AMPIP) estimates that 47 new industrial parks will come into operation to respond to this growing need.
Traxión, the only publicly traded institutional logistics company in Mexico with more than 70 years of experience and 24,600 employees, currently processes more than 1.4 million tons annually through its consolidation centers. The company has identified three critical factors that transform consolidation from simple cargo grouping to a sustainable competitive advantage:
- Multilevel Synchronization
Coordination between dedicated, multi-client, and bonded warehouses allows for the optimization of flows of up to 162 million boxes per year, as demonstrated by the operation with Colgate-Palmolive in its 100,000 m² of specialized facilities.
- Predictive Technology Integration
Transportation Management System (TMS) and Warehouse Management System (WMS) generate real-time visibility of the location and status of consolidated products. This capability reduces picking times by up to 40% and minimizes errors by 85% according to current operational metrics.
- Dynamic Modal Flexibility
The ability to switch between FTL (Full Truck Load) and LTL (Less Than Truckload) transport depending on consolidated volumes optimizes costs per kilometer on critical routes such as Bajío-Laredo, where Traxión operates more dynamically for exports to the United States.
Enabling technologies for smart consolidation
The implementation of WMS systems represents the first critical step toward effective consolidation. These systems provide technological tools that offer a solution for inventory management and warehouse operations. Having a WMS is a critical step in optimizing logistics operations.
Specific benefits include:
- Comprehensive inventory visibility: WMS systems provide real-time visibility into the location and status of products in the warehouse.
- Location optimization: These systems can optimize the location of products in the warehouse to reduce picking and packing time.
- Automation of repetitive processes: Automatic generation of shipping labels, assignment of workers, and inventory updates
- Seamless integration: These systems integrate easily with other business software, such as ERP systems and transportation management systems (TMS).
Traxión's Productivity Center operates 24/7, monitoring more than 1.2 million square meters of storage space, using predictive analytics to anticipate peaks in demand and proactively adjust consolidation strategies.
Key sectors driving consolidation demand
- Automotive
States such as Aguascalientes are expected to see 100% industrial absorption from the automotive sector by 2024. The consolidation of auto parts from multiple Tier 2 and Tier 3 suppliers into assembly plants requires pinpoint synchronization and just-in-time responsiveness.
- Advanced Manufacturing
It includes everything from machinery to medical devices. The priority is on facilities with high technical standards and logistical connectivity. Traxión's MARS/Amway operation exemplifies this capability with specialized co-packing that integrates products from different production lines.
- Chemist-Pharmacist
They require spaces designed with technical specifications, environmental controls, and certified logistics. Consolidation in this sector requires a continuous cold chain and integrated regulatory documentation for international consolidations.
- Food and Drinks
Companies seek to regionalize distribution with strategic hubs that reduce delivery times through efficient consolidation of multiple orders.
Change management in the implementation of consolidation strategies
The implementation of a logistics operator is a challenge that requires change management structured in three fundamental stages:
- Preparation and Design: Prioritize, create a sense of urgency, and form a leadership team. Challenges include team integration and technological compatibility.
- Commitment and Transition: Create a shared vision, train and support the team. The productivity curve illustrates the initial decline and subsequent recovery and improvement in performance.
- Implementation and Sustainability: Implement the change, maintain the effort, monitor and follow up, and institutionalize the new culture. It is essential to establish clear SLAs and KPIs for continuous monitoring.
Emerging logistics clusters and their impact on consolidation
North Border
Monterrey, Saltillo, Ciudad Juárez, and Tijuana account for more than 50% of new industrial demand. These hubs require consolidation centers capable of handling bidirectional Mexico-United States flows with integrated customs agility.
Bajío Region
Querétaro, Guanajuato, and San Luis Potosí are establishing themselves as key regions due to their infrastructure, skilled labor force, and intermodal connectivity, enabling rail consolidation for massive volumes.
Emerging Areas
Ciudad Obregón and Reynosa are beginning to stand out for their absorption and availability, developing specialized consolidation capabilities.
Last mile optimization through urban consolidation
Strategic consolidation in the last mile represents one of the greatest logistical challenges. This final phase of delivery is critical for customer satisfaction and operational efficiency. Traxion has implemented innovative strategies:
Cross-docking centers: Consolidating orders at strategic centers reduces the need for individual trips to multiple destinations.
Zone consolidation: Strategic zoning involves the deliberate subdivision of storage space into different specialized sections, optimizing the arrival, storage, and dispatch of products.
Urban electric bicycles: Electric bicycles have been introduced for deliveries in urban areas, improving agility and reducing the carbon footprint.
Success Story: Transformation of FEMSA Ecuador
The implementation of the advanced consolidation model at FEMSA Ecuador represents a paradigm of operational excellence:
- Investment: $21 million USD in technology and automation
- Key result: 45% reduction in operational staff through automation
- Improved accuracy: 99.7% accuracy in consolidated shipments
- Consolidation time: Reduction from 6 hours to 2.5 hours on average
Diana Margarita David, Warehouse Manager, explains: "We always strive for excellence, maintaining our key performance indicators at the highest level, constantly innovating, with success using the JDA system, which is a technology that provides real-time visibility of warehouse activities to enable continuous control and monitoring of costs, productivity, and service."
Sustainability as a differentiator in consolidation
Decarbonization of the transportation sector is now a priority for global companies looking to invest in Mexico. Enrique Llaca, Corporate Commercial Director at Traxión, points out that the technological transformation of the sector has been key to improving operational and environmental indicators, as well as optimizing costs and returning them to customers via rates and service.
Sustainability initiatives include:
- Implementation of solar energy in facilities
- Purchase of electric and alternative fuel vehicles
- Route optimization to reduce fuel consumption
- Consolidation of loads to maximize vehicle capacity.
The Future of Consolidation: Trends 2025-2027
Projections indicate that during 2024 and 2025, Foreign Direct Investment (FDI) could exceed the 2023 figure, which totaled $36.058 billion. By 2027, demand for industrial space is estimated to grow by an additional 3 million square meters.
Companies are no longer just looking for industrial space. They are focusing on:
- Specialized consulting: Understanding the fiscal, legal, and logistical environment in Mexico
- Contractual flexibility: Adaptive models for leasing, purchasing, or progressive development
- Build-to-Suit (BTS): Projects designed to meet specific logistics processes
Alejandra Méndez, Director of Communications at Traxión, confirms: Over the last two years, we have benefited from nearshoring because we have seen the arrival of new companies not only from China, but also from the US and Europe.
Key metrics for evaluating success in consolidation
Logistics managers must monitor specific indicators:
- Vehicle Fill Rate: Minimum target of 85% occupancy in consolidated shipments
- Consolidation Cycle Time: Target <4 hours from receipt to dispatch
- Cost per Unit Shipped: Minimum reduction of 25% compared to individual shipments
- Perfect Order Rate: >95% for multi-client consolidated shipments
- Dwell Time: <24 hours for goods in the process of consolidation
Strategic consolidation is the backbone of Mexican logistics competitiveness in the era of nearshoring. Companies that master this capability will disproportionately capture the value of the explosive growth the sector is experiencing.
Contact our specialists and discover how to transform your supply chain into an engine of sustainable growth and superior profitability.
Sources:
- Mexico as a logistics hub for nearshoring: Analysis and projections for 2025 - Frontier Industrial (2025).
- Warehouse Efficiency with WMS Systems for Nearshoring in 2024 - TechSoft (2024).
- Nearshoring and decarbonization are key to logistics growth in Mexico: Traxión - Eje Central (2024).
- Strategic zoning: The key to maximizing space and improving logistics management - Solística (2024).
- Strategies for optimizing your supply chain - Solística (2024).
- Traxión boosts capacity to meet nearshoring demands - T21 (2024).
- Nearshoring: Traxión's commitment - Heraldo de México (2024).
