Case Study

A Success Story from the Automotive Industry: Transforming cross-border challenges into business growth in Mexico

Discover how a Tier 1 automotive industry provider transformed cross-border complexities into avenues for business expansion by leveraging Nuvocargo’s unique U.S.-Mexico expertise.

Estimated 5 min read
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Key Takeaways

Unlocking the Mexican market's potential

With enhanced operational agility and confidence, this Tier 1 automotive industry provider has started to successfully tap into the vast opportunities of the Mexican market, positioning themselves for sustained growth and increased shipment volumes.

From zero visibility to continuous updates

Within the complexities of U.S.-Mexico freight, Nuvocargo helped transform the company's cross-border operations, transitioning from limited visibility at the border and within Mexico to providing continuous shipment updates, ensuring informed decision-making and enhanced trust with customers. 

Simplified communications and workflows

Nuvocargo's deep integration into the operations of the company and their client (Top-tier OEM) enhanced efficiency by minimizing client communication points from 10 to 1, saving approximately 30 hours each month.

01 Starting point:

Navigating through the intricate landscape of U.S.- Mexico cross-border shipping extends beyond merely moving goods from point A to point B; it’s about working through a complex network of logistical and regulatory nuances, and unexpected challenges. While exploring the opportunities presented by entering the Mexican market, this Tier 1 automotive industry provider was faced with subpar communication from carriers/brokers and the ever present risk of delays, leading to an unpredictable shipping experience.

Recognizing the immense potential in overcoming these challenges, our client, driven by a commitment to uphold superior product and service standards for its customers, needed to find a partner that would go beyond the movement of goods, offering a simpler U.S.-Mexico border experience. Thus, enabling them to tap into this vast potential market and pave the way for expansion in the region.

03 The solution:

Leveraging its deep expertise in U.S.-Mexico cross-border freight, Nuvocargo seamlessly integrated with the Tier 1 automotive industry provider, becoming their eyes and ears, indistinguishable from the company's team to their top-tier OEM client, and ensuring a unified and coherent service experience. By centralizing all communications through Nuvocargo, both the company and its client were able to simplify and reduce their points of contact from 10 to 1, minimizing response times and saving an average of 30 hours per month on back-and-forths. Additionally, proactive communication included a 24/7 monitoring team that reported every 2 hours to all stakeholders, leading to more efficient processes and enabling a smoother, more reliable supply chain. Furthermore, Nuvocargo’s integrated solution included a tailored insurance product for U.S.-Mexico cross-border trade to protect high-value cargo, safeguarding the company's valuable shipments.

“Your singular focus on U.S.-Mexico transportation made me think you know what you’re doing and I was very impressed with your onboarding process.”

Traffic Manager

04 The outcome:

The Tier 1 automotive industry provider transformed its cross-border operations into a streamlined, secure, and efficient process with the support of Nuvocargo. The communication barriers and shipment unpredictability that once hindered their expansion were replaced with a simple, transparent and proactive operational flow. The tangible benefits were clear: The company not only experienced a significant reduction in communication and operational inefficiencies but also successfully tapped into the promising Mexican market. This operational uplift not only reassured their board and partners, but has also paved the way for them to increase their shipment volumes significantly by end-of-year, allowing them to tap into new growth opportunities in partnership with Nuvocargo.

“You guys have made the experience so smooth & good I’m not scared of ramping up [U.S.-Mexico cross-border] volumes”

Traffic Manager

02 The challenge:

This Tier 1 automotive industry provider had previously ventured through the complex U.S.-Mexico cross-border landscape, encountering a set of challenges along the way: Language barriers that led to constant email translations, back-and-forth communications, and triangulations, all of which added significant complexity to their operations. A key concern arose when shipments entered Mexico, as the existing tracking systems did not offer the desired level of visibility, requiring the company to be constantly checking for updates on their cargo’s whereabouts. This wasn’t merely an operational hurdle but a notable risk that tempered their enthusiasm towards seizing opportunities in the Mexican market. Despite a challenging initial experience, the company was ready to embark on a new project involving a top-tier OEM in Mexico, exploring innovative solutions to enhance their cross-border shipping efforts.

“Looking back, the problem with the other broker was that when the truck crossed into Mexico, there was absolutely no visibility. No responsiveness from the broker. Couldn’t get anyone available on the weekend. Poor communication.”

Traffic Manager

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Transformation Snapshot

Before Nuvocargo

Fragmented Communication

Constant back and forths to keep everyone informed, wasting time and resources.

Poor Shipment Visibility

Once shipments crossed into Mexico, tracking was minimal and limited, causing unpredictability.

Operational Inefficiencies

Previous partner’s limited understanding and involvement in the specific operational needs of the company and their OEM partner.

Limited Expansion

Hesitation to fully explore the Mexican market due to operational and logistical challenges.

Safety Concerns

Lack of tailored insurance for high-risk shipments, posing potential financial risks.

With Nuvocargo

Streamlined Communication

Centralized communications between all stakeholders leading to over 8 hours a week in time saved.

Enhanced Shipment Visibility

24/7 monitoring team providing reports every 2-hours, ensuring informed decision-making.

In-Depth Operational Sync

Deep, hands-on involvement, including on-site visits, to fully comprehend and anticipate specific operational needs.

Market Expansion

Bolstered confidence to tap into the vast opportunities within the Mexican market.

Secured Shipments

An all-in-one solution tailored to the company's specific needs, including insurance to protect high-value cargo.

“Nuvocargo did a phenomenal job... even before we shipped the first load. When our OEM partner had additional needs, your team literally jumped all over it... they visited several times to understand exactly what we were looking for... I was really impressed with that." 

Traffic Manager

05 Conclusion:

The company’s commitment to its clients and a robust growth mindset pushed them to find efficiencies in their cross-border supply chain and expand its operational capabilities. Leveraging Nuvocargo’s expertise in cross-border freight and its customer-centric approach allowed them to transform operational challenges into strategic advantages. The enhanced visibility, streamlined and centralized communication processes, and integrated insurance product offered by Nuvocargo, has empowered them to continue expanding their footprint in Mexico, further solidifying their position in the market. This partnership not only optimized the company’s supply chain but also strategically positioned them for sustained growth in a competitive landscape.