Let's Talk Supply Chain

56 - Build Bridges, Not Walls: The Story about Shared Production w/ Agustín Picado from UPS Mexico


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Hey 2 Babe Listeners,

After our short break, we've come back with a very special episode for you guys!

Our guest host for this episode is Agustín Picado, President at UPS Mexico who knows all about shared production and why it's so beneficial. So what is shared production? Augie gave an example during the interview explaining that shared production is "like a school project" and everyone working on that project brings a special skill to the table. You may have someone on your team that's really good at writing, another specializes in analyzing data, and another person is a great presenter. Shared production is made of all of those components and people involved and presented as the "finished product" by the presenter of the group.

Companies focus on what they do best and most efficiently and then they trade for the rest. This means that these companies can reside in different parts of the world but have those special skills needed to put together a great finished product, which a final company assembles. This kind of shared production boosts the economies of the countries the companies involved reside in and it also makes for a higher quality finished product because each company focuses on what they truly do best.

Ground freight is heavily used between Mexico, USA and Canada. With the recent discussions about putting up a wall along the Mexico/USA border and the upcoming changes to NAFTA, this puts shared production at risk. ​The impending NAFTA changes and the proposed building of the wall are not just physical barriers but barriers that impede the flow of people and goods. Delays begin to stack up and will make the crossing of goods and people less reliable and more costly which will ultimately affect the customer.

Please download and listen to this episode to find out all about shared production and Augie's insight into the future of moving product across borders not only within North America but around the world as well as the future of UPS Mexico as they continue to adapt to these changes. You can also check out Augie's TED Talk on the current state of Manufacturing jobs here.

___

The Mexico City earthquake that took place a few weeks ago left a devastating impact on the residents of the city leaving many with little to no resources to help rebuild their homes and lives back to the way they were before.

Augie set up a relief fund to help his team members who were severely impacted by the earthquake that left them in a very difficult financial situation. If you'd like to donate and help them rebuild their homes, please visit: https://www.youcaring.com/upsmexicoemployeesimpactedbytheearthquake-959996

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Let's Talk Supply ChainBy Sarah Barnes-Humphrey

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