1. LATIN AMERICA GLOBAL TRADE OUTLOOK
6th Annual
Global Supply Chain Excellence Summit

2. Director of Operations MEXFLEX GROUP
Introduction
Ricardo is a senior executive with broad international experience in Supply Chain Planning, Supply Chain Execution, IT Strategy design and International Distribution with Fortune 500 companies. He has gained significant experience developing Operational Models (Process, Infrastructure, Technology, People) for CPG and Retail companies in Latin America with recognized capacity to asses Supply Chain needs and improvement plans. His achievements include setting up programs to better integrate Supply Chains to Demand and Commercial needs while addressing hard savings for the P&L. Ricardo has established and managed “third party” operations and large scale “Business Change Programs” like the implementation of SAP R/3 in Latin America.
Ricardo Vera
Director of Operations MEXFLEX GROUP

3. Br & Mx are the World`s 8th & 15th Largest Economies
Projected to become #7 and #8 by 2050
Countries with largest GDP in 2017
(Trillions of dollars)
Rank Country $USD
United States
China
Japan
Germany UK
India
France
Brazil
Italy
Canada
Russia
S. Korea
Australia
Spain
Mexico #7

4. Mexico has an enviable Geopolitical & Economic Position to improve Regional & Global Trade
Natural Resources - Strategic Location – Solid Economic & Business Climate

5. Brazil can seize greater benefits from greater global and regional integration
Integration into global trade is much lower than in other emerging markets as trade barriers shield enterprises from global opportunities and foreign competition.
Exports and growth could
be stronger if firms could source the best inputs and capital goods
from international markets.
More exposure to trade will also lead
to rising productivity among domestic producers as they improve
efficiency and seize new export opportunities.
This would create
new jobs across the economy, but especially for those with lower
skills and incomes, making growth more inclusive.
Source: ProMèxcio; Secretarìa de Hacienda y Crèdito Pùblico 2016
OECD Economic survey
“Connecting the world through Network, Education, and Advanced Research (NEAR).”

6. Brazil has recovered from recession
Investment has supported the recovery, helped by lower interest rates and reforms that improved confidence
Economic Overview
After a decade of strong growth ( ), Brazil entered into the worst recession in its history in 2015 (-3.8% of GDP) and 2016 (-3.6%)
Economic crisis due to the fall of commodities price and a drop in consumption and in investment
In 2017, the economy recovered and GDP recorded a 0.7% progression
Budgetary adjustment and favorable economic conditions have fostered the recovery
In 2018 the Brazilian economy should confirm its rebound with an expected growth of 1.5% (IMF)
Structural reforms will be crucial to sustain the recovery.
Low inflation is supporting household real incomes and has opened space for significant interest rate reductions, both of which are likely to support stronger private consumption.
“Connecting the world through Network, Education, and Advanced Research (NEAR).”

7. Working age population
Mx & Br: Young Countries with Expanding Working Population
Generating Production Sustainability, Abundance of Competitive Labor
Working age population
% of population
72%
70%
BR 68.85%
68%
G 20
66%
MX 65.32%
64%
Source: (1) UN Population Research Division; (2) ProMèxico, The Economist

8. Labour productivity in Thousands of USD at PPP / person employed
For Mx & Br, productivity will have to become the principal engine of growth
Need of significant higher investment and microeconomics reforms
Labour productivity in Thousands of USD at PPP / person employed
MX 38%
Productivity will contribute to create more and better
remunerated jobs.
Improvements in productivity require investment in physical capital and people skills.
BR 29%
Source: (1) UN Population Research Division; (2) ProMèxico, The Economist

9. Mexico has Achieved Important Legislative Reforms
Positive Impact on Business Climate, Foreign Investment and Overall GDP
Source: ProMèxcio; Secretarìa de Hacienda y Crèdito Pùblico 2016

10. A Leader in Leveraging Mexico`s Benefits
Since 1994 automotive production has increased from 1.0M to 3.5M. 5.0M in 2020

11. Logistics has a new role creating value
What are the “Supply Chain Management decision makers” in LATINAMERICA expectations on Logistics?
ACTIVITY FOCUS
BEFORE: Logistics a competitiveness enabler:
Operate eficiently
Reduce cost and working capital
Reduce time – Just in time
Value: Increase margins for the company.
NOW: Competitive companies use Logistics for:
Develop and support new businesses
Increase sales and market share
Improve service and consumer loyalty
Value: Increase value for shareholders.
Logistics has a new role creating value
FROM:
COST MANAGEMENT
TO:
INCREASE SHAREHOLDERS RETURN ON INVESTMENT

12. LATINAMERICA: A Changing Supply Chain Landscape
ACTIVITY FOCUS
Operations & Infrastructure
Logistics vendors Integration
Logistics management and planning
COORDINATION
Global 4PL w/IT solutions. Integrates Regional 3PL´s
Regional 3PL w/ IT solutions, and Operational Models design & implementation
3PL services por transportation & whsing services w/o Technology
EXECUTION
Simple Transportation, Warehousing, Customs services

13. Room for Improvement Mx & Br Strengths…..
Are among the world`s most extensive
Many are betting on the countries - to great success
But the Opportunities are Real….
Political Corruption
Drug Trade
Rule of Law
Security
Infrastructure
Mx & Br future depends on citizen participation to strengthen the rule of law, eliminate corruption, improve education and drive entrepreneurship

14. 6th Annual
Global Supply Chain Excellence Summit
Thank You!