Future of Sourcing - Mexico http://futureofsourcing.com/tags/mexico en Data is Key to Latin American E-Commerce Logistics http://futureofsourcing.com/data-is-key-to-latin-american-e-commerce-logistics <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Data%20is%20Key%20to%20Latin%20American%20E-Commerce%20Logistics.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Data%20is%20Key%20to%20Latin%20American%20E-Commerce%20Logistics.png" title="Data is Key to Latin American E-Commerce Logistics" class="colorbox" rel="gallery-node-2021-F9v6JqSSF8Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Data%20is%20Key%20to%20Latin%20American%20E-Commerce%20Logistics.png?itok=EhkYh_Lm" width="624" height="325" alt="Data is Key to Latin American E-Commerce Logistics" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Data is Key to Latin American E-Commerce Logistics</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/logistics-outsourcing-explained-defining-the-3pl-4pl-and-5pl-models">Logistics Outsourcing Explained: Defining the 3PL, 4PL and 5PL Models</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>As has happened everywhere in the world, shopping and buying habits in Latin America have been profoundly affected by the still ongoing COVID-19 pandemic. Once a laggard in e-commerce, it is now the fastest-growing regional e-commerce market in the world; last year, total retail e-commerce sales in Latin America grew 36.7%, to $84.95 billion.</p> <p>Among the larger individual economies in the region, Argentina&rsquo;s was the fastest-growing, with a retail e-commerce increase rate of 79%; Brazil&rsquo;s e-commerce growth rate was 35%, and Mexico&rsquo;s was 27%. This skyrocketing growth, coupled with the region&rsquo;s size&mdash;Latin America has a population of more than 650 million people&mdash;has attracted the attention of e-commerce marketers all over the world.</p> <h2><strong>Many Challenges</strong></h2> <p>There remain, however, significant challenges to doing business in that part of the world. Latin America consists of 33 individual countries and an additional 15 dependencies and territories, ranging in population size from Brazil&rsquo;s 212.6 million to 3,480 people in the Falkland Islands. Most of these entities have their own currencies and taxation and customs authorities, which can cause a variety of problems.</p> <p>One of which is misinformation. For several years it has been said it is forbidden to import cosmetics into Mexico. This is not true. What is true is that the head of the customs office at Mexico City&rsquo;s Benito Juárez International Airport (MEX) decided to change procedures for cosmetics importation. Instead of applying the previously used simplified carrier clearance, MEX now requires a much more laborious and costly customs entry procedure.</p> <p>However, this did not reflect an actual change in Mexican law; it reflected an arbitrary decision by one head customs official at one airport. The simplified courier clearance procedure still exists, and is applied to cosmetics importation at Quetzalcoatl International Airport in Nuevo Laredo. This involves a little trouble, and some big global shipping companies don&rsquo;t want to bother with it&mdash;hence the ongoing belief that Mexico prohibits the importation of cosmetics.</p> <h2><strong>Logistics</strong></h2> <p>In addition to regulatory problems there are logistical challenges, not least of which is simply getting a package delivered. When merchants try to ship to Latin American customers via the United States Postal Service, they encounter delivery times of three weeks and sometimes longer&mdash;if the package gets delivered at all. USPS international service, whose rates are quite reasonable, works very well for mail to places like western Europe or Japan, but badly for Latin America, where most countries are plagued with bankrupt and dysfunctional postal authorities that provide unacceptable service.</p> <p>In addition to reliable delivery service, another logistical challenge is the requirement by a number of destination countries&mdash;among them Chile, Peru, and Brazil&mdash;that any package being delivered bear the recipient&rsquo;s tax ID number. Brazil also requires a World Customs Organization Harmonized System (HS) code for the merchandise being shipped.</p> <h2><strong>Data</strong></h2> <p>Many online merchants do not require this information at checkout. Moreover, they have no desire to. The smoother and easier the checkout process, the fewer the number of abandoned carts and lost sales. To avoid that, the shipper should provide the client with API links that coordinate their own checkout systems with all the necessary delivery data.</p> <p>It is of the utmost importance that any delivery provider operating in Latin America have the ability to provide an HS code for any item, as well as verify against a database the tax ID numbers.</p> <h2><strong>This Is For keeps</strong></h2> <p>The Latin American e-commerce boom is going to be permanent. Before the pandemic, there was a trust barrier: many Latin Americans were afraid to put their credit card information online. Then COVID came, the stores closed down, and Latin Americans had no choice: if they wanted something, they had to order it. So, they did, and a level of trust was established.</p> <p>To retain that level of confidence, logistical managers throughout the supply chain will need to be prepared to meet escalating merchant and customer expectations. Meanwhile, Latin America will continue to be, governmentally and geographically, a complicated place. Given this, and the attendant constant rate of change, merchants will need to continue to rely on specialists in Latin American logistics to handle their shipping.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/logisitics" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Logisitics</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/e-commerce" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">E-commerce</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/mexico" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Mexico</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Data is Key to Latin American E-Commerce Logistics - Future of Sourcing" addthis:url="http://futureofsourcing.com/data-is-key-to-latin-american-e-commerce-logistics"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/latinamerica-caribbean" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Latin America/Caribbean</a></div></div></div> Thu, 08 Jul 2021 02:00:00 +0000 A.J. Hernandez 2021 at http://futureofsourcing.com http://futureofsourcing.com/data-is-key-to-latin-american-e-commerce-logistics#comments 3 Tips for Communicating with Business Partners in Latin America http://futureofsourcing.com/3-tips-for-communicating-with-business-partners-in-latin-america <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/communication_Latin%20America%20624x325.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/communication_Latin%20America%20624x325.jpg" title="3 Tips for Communicating with Business Partners in Latin America" class="colorbox" rel="gallery-node-1258-F9v6JqSSF8Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/communication_Latin%20America%20624x325.jpg?itok=INsCanM8" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>Working with an international team can be a highly effective way to bring new ideas and innovation to your business. However, the U.S. style of doing business may not bring about the results you desire when working with a team in <a href="http://www.futureofsourcing.com/node/836" target="_blank">Mexico</a>, <a href="http://www.futureofsourcing.com/node/827" target="_blank">Colombia</a> or Argentina. Each country requires a unique form of communication to reach an understanding with your team. Even when working with teams in one region like Latin America, business practices can vary significantly between countries.&nbsp;</div> <div>&nbsp;</div> <div>Effective cross-cultural business relationships require sensitivity, time, flexibility and trust. That being said, you still need to hit deadlines with your projects and reach agreements quickly when you meet with your team abroad. Whether you are outsourcing or working with a staff augmentation partner, establishing open lines of communication is crucial to collaborate on multiphase projects like software development or UI/UX design.&nbsp;</div> <div>&nbsp;</div> <div>Here are a few tips for achieving more fluid collaboration and communication with a <a href="http://www.futureofsourcing.com/cultural-counterparts-the-advantage-of-nearshoring" target="_blank">Latin American business partner</a>.&nbsp;</div> <div>&nbsp;</div> <div><strong>Do your research on the country where your partner is based&nbsp;</strong></div> <div>While many North Americans see Latin America as a monolithic continent, the region is far from homogeneous. The typical anecdote to prove this point speaks of a European businessperson who spent months polishing his Spanish to try to build a business partnership in Brazil. The ridiculousness of this anecdote still rings true in many ways, although an international or outsourced team in Latin America will likely speak English now. Nonetheless, the language barrier is not the only distinguishing factor between countries in Latin America.&nbsp;</div> <div>&nbsp;</div> <div>Depending on the country in which you work, business meetings may look very different from how they operate back home. For example, in Argentina it&rsquo;s important to both greet and say farewell to each person individually and most meetings start with a personal conversation updating colleagues on hobbies, interests and family life. For many business people in the U.S., these steps might seem unnecessary, intrusive or a waste of time. In fact, in other countries such as Chile and Panama, many partners would prefer to get straight to the point, as well. Unfortunately, few rules apply to the entire region.</div> <div>&nbsp;</div> <div>In general, Latin American partners prefer to get to know you before getting down to business. Take the time to introduce yourself properly and even share a few personal details (if you feel comfortable) to build trust with your local partner. If you are looking for insights on a specific country, check out blogs from other expats working in the region such as <a href="http://www.nathanlustig.com" target="_blank">Nathan Lustig</a> or <a href="http://www.lisabesserman.com" target="_blank">Lisa Besserman</a>.&nbsp;</div> <div>&nbsp;</div> <div><strong>Learn a little bit of the local language</strong></div> <div>When you are working with a new partner or team in Latin America, few people will expect you to be able to explain complicated technical terms in Spanish. However, it is a sign of respect to speak the local language even at a basic level to show an interest in two-way collaboration. After all, your Latin American team or partner has probably put a lot of effort into learning English so they can communicate with you.&nbsp;</div> <div>&nbsp;</div> <div>Eric Ruiz, a Mexican-American entrepreneur and strategist for Waze, <a href="https://www.fastcompany.com/3064667/five-lessons-i-learned-when-i-started-doing-business-in-latin-america" target="_blank">received</a> a standing ovation the first time he gave a presentation in Portuguese in Brazil. Even a few words of Spanish or Portuguese can go a long way in winning new business partnerships and proving that you are committed to the project.&nbsp;</div> <div>&nbsp;</div> <div><strong>Make time to talk face-to-face</strong></div> <div>You may not be able to travel to Argentina or Colombia every time you want to talk to your business partner abroad, but technology has made it simple to get in touch from anywhere in the world. Business meetings in Latin America tend to depend on personal interactions and face-to-face communication, which could mean that weekly phone calls may begin to feel very impersonal to your Latin American partner if they happen all the time. So be sure to at least occasionally meet using <a href="https://zoom.us" target="_blank">Zoom</a> or <a href="https://appear.in" target="_blank">Appear.In</a> so that your communication is more personal.&nbsp;</div> <div>&nbsp;</div> <div>Not only does video chat make it possible for you to read your partner&rsquo;s body language, which can be even more telling than their words, but it also opens a more personal line of communication that will build trust and improve collaboration in the long term. While an in-person meeting will almost always be the most effective way of communicating with a Latin American partner, you can&rsquo;t visit every time you need to resolve an issue. Use video calling when possible to enable you to communicate adequately with your local partners in Latin America.&nbsp;</div> <div>&nbsp;</div> <div>When you are doing business in Latin America, whether it&rsquo;s outsourcing or working with a business partner, you may need to adjust your communication methods to explain your vision and strategy adequately. While many Latin American developers and technology teams will be accustomed to U.S. business methods, even small adjustments, such as meeting face-to-face to start a partnership or learning a few words of Portuguese or Spanish, can go a long way in improving collaboration with your team. Taking the extra time to chat about family or soccer might make your meeting last a few more minutes, but it might also mean more open and better collaboration in the long term.&nbsp;</div> <div>&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/nearshoring" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Nearshoring</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/mexico" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Mexico</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/columbia" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Columbia</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/argentina" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Argentina</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/communication" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Communication</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/business-process" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Business Process</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="3 Tips for Communicating with Business Partners in Latin America - Future of Sourcing" addthis:url="http://futureofsourcing.com/3-tips-for-communicating-with-business-partners-in-latin-america"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/latinamerica-caribbean" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Latin America/Caribbean</a></div></div></div> Wed, 22 Aug 2018 15:03:11 +0000 Joe Edwards 1258 at http://futureofsourcing.com http://futureofsourcing.com/3-tips-for-communicating-with-business-partners-in-latin-america#comments