Supply chain disruptions don’t just affect one area of the world. When there is a kink in the chain, the whole network of branches and annexes are affected to some degree. After the pandemic, many investors set their sights on Latin America (LatAm) as several companies worldwide tried tapping into new markets and routes to ensure that their logistics processes remained intact.
Unfortunately, the LatAm market is missing some foundational benchmarks in its freight forwarding framework. According to Mexican startup BeGo, which operates in the region, “trucking demand outpaces capacity, yet 40% of the time trucks roll empty”.
This has a lot to do with the fact that the region still lacks the state-of-the-art technology needed to complete the most basic services on the ground floor, which has slowed its growth in the international logistics market despite the demand to become a strategic point.
By offering pick-up and delivery programs, Cargamos is not only supporting the local logistics sector but also boosting small businesses that do not have the necessary machinery to ship on their own. Their work is helping to fill the gaps for shipping in LatAm, which will help to improve the regional, and by extension, international supply chain.
The leading LatAm next-day delivery platform today announces the appointment of Yohan Powell as a co-founder and Chief Financial Officer. With the former strategic officer from McKinsey joining, the company looks all the more set to scale its operations and make a considerable impact on LatAm’s growing importance for the global delivery network.
The Leadership Needed to Scale LatAm’s Delivery Network
The LaAm region has seen major growth in the eCommerce world, with 13 million people across the region making an online transaction for the first time just last year, causing eCommerce in the region to grow by 36.7%.
With a lack of a shipping and delivery infrastructure, however, company Cargamos is looking to provide an end-to-end logistics platform that offers solutions locally, and beyond. The Mexican technology startup offers the best next-day shipping solution in Latin America by connecting retailers and independent shipping carriers to its unique last-mile technological infrastructure strategically located in high proximity nodes in the region.
Yohan, who began taking on duties as CFO in March, also worked at McKinsey in Mexico City for more than two years, helping startups and traditional Latin American companies to scale and capitalize on their existing assets to create successful ecosystems. Yohan will help to accelerate the company’s strategy and finance department, central functions, and oversee mergers, acquisitions (M&As), and fundraising initiatives.
Yohan holds an MSc. in Statistics and Mathematics from ENSAI, France, as well as an MSc. in Finance from Imperial College, England. Yohan’s financial strategic expertise spans more than 15 years, including a decade as an investment banker with Macquarie’s M&A and Private Equity divisions in London, Sydney, Paris, New York, and Mexico City. He advised clients the world over on more than 50 transactions ranging in value from $100M to $2B.
“I am thrilled that Yohan is joining the executive team of Cargamos. He brings extensive experience in leading operations and has successfully driven several substantial growth programs throughout his career,” said Ivan Ariza, Chief Executive Officer of Cargamos.
“Yohan’s experience in consulting and investment banking will provide our company the structure and best practices we need to support our ambitious growth strategy”.
The Future of LatAm’s Supply Chain
Even prior to the pandemic, last-mile delivery services were already the biggest cost-driver in the global supply chain, comprising 53% of costs overall. This is a problem rooted in the very fabric of the delivery network in LatAm and is causing growing pains all the way up the supply chain to the international level.
One of the biggest pain points has been seen in the extreme escalation in the cost of freight shipping in the region. According to figures from the Economic Commission for Latin America and the Caribbean (ECLAC), the USD $4,000 fee that was normally paid to bring a container from Asia to Panama surged to USD $10,000 by the end of June—with the price climbing to USD $15,000 in recent days.
This shows major disparities across the whole LatAm delivery network, coupled with a significant need for guidance on how to build a better and more sustainable system from the ground up.
“I am very excited to be joining Cargamos at this important time and during a vital stage in the company’s growth,” Yohan said of the appointment. “I look forward to working with their team as we unlock the potential of eCommerce in Latin America.”
With companies like Cargamos, equipped with the guidance of seasoned professionals such as Yohan, the kinks in LatAm’s supply chain may eventually be worked out, ushering in a new era of shipping success in the region.
Disclosure: This article mentions a client of an Espacio portfolio company.