UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN

FACULTAD DE CONTADURÍA PÚBLICA Y ADMINISTRACIÓN

LIC. EN NEGOCIOS INTERNACIONALES

PIA

Investigation on a real company that operates in Monterrey

METALSA

Subject: Logistics
Professor: Sergio Himbler Guerra Luna
Team: 4 Group: 6Di

Team members:

Naomi Rachel Garcia 2079110

Ana Elena García Arroyo 2079316
Maria del Cielo Gallardo Osti 2079296
Roberto Flores Villalobos 2079597

Monterrey, NL May 11, 2023.

 Index

Company 3
Background 3
Vision 4
Ambition 4
Products 4
Market Information 6
Their customers: 6
Structure of the company METALSA 7
Where is the Quality in the order of Metalsa? 11
Methodologies that Metalsa applies to generate quality products 12
How is it that the customer is convinced that Metalsa provides Quality products? 12
Supply chain 15
Logistics 16
Supply structure: 18
- Policies and procedures, processes 18
- Examine the processes to see if they are being executed correctly 18
Interview 21
General conclusion (2 pag) 25
Individual conclusions 27
Maria del Cielo Gallardo Osti 2079296 27
Ana Elena García Arroyo 2079316 29
Naomi Rachel Garcia 2079110 31
Roberto Flores Villalobos 2079597 33
Appendix 35

2
Company
METALSA S.A de C.V

Background
METALSA is a Mexican company founded in 1956 specialized in the manufacturing industry in
Mexico. The company produces structural components for light and commercial vehicles,
among which, stands out chassis bodies for trucks, suspension modules, gasoline tanks and
body structures. , in addition to beams and crossbars for medium and heavy trucks.
The Company has presence in Argentina, Australia, Brazil, Germany, India, Japan, Mexico,
Thailand, Russia,USA, Venezuela and a joint venture in the United Kingdom.

With more than 60 years of experience, Metalsa provides the light and commercial vehicles
industries with chassis and body structural components for PickUp Trucks, SUV’s, Heavy
Trucks, and Buses.

Metalsa wants to be an agent of change not only in the transportation industry but also in the
wider world. In the course of our regular business activities, we work closely with our partners to
develop and design innovative, lighter, and safer products; to minimize waste in our processes;
and to contribute to stronger and more inclusive economic growth in the countries where we
operate.

Furthermore, we encourage our collaborators to do their part by maintaining responsible

practices in the workplace and in their personal lives towards the three basic spheres of
sustainability: environment, economy, and society. We believe that everything we do as a
company should contribute to sustainable solutions across these spheres.

3
Mission
Provide structures that help our customers move the world more efficiently while protecting the
environment and ensuring the long-term economic and social value generation for our
stakeholders.

Sustainable solutions for vehicle structures

Provide structures that help our clients move the world more efficiently while protecting the
environment and ensuring the generation of long-term social and economic value for our
stakeholders.

Vision
To become a leading mobility manufacturer of chassis & electrified solutions for the automotive,
trucking, and off-highway industries.

Ambition
Metalsa wants to be a change agent not only in the transportation industry but also in the rest of
the world. We strive to support our customers and the communities where we operate and our
awards are a testament to our achievements.

Products
In the light vehicle category, they make products such as pick-ups in which they develop
structural and safety components that exceed all engineering performance requirements, taking
advantage of advanced materials, lean and flexible processes, achieving successful program
launches.

4
In the commercial vehicle category they produce trucks and buses which offer tailored chassis
solutions that optimize weight and durability through balanced and scalable manufacturing
processes for local needs.

They have their main facilities in Monterrey, but they also have service offices in the United
States, Japan, India and Germany. They also have plants in Argentina, Brazil, Australia, India,
England, Venezuela and the USA.

They have a Research and Development (R&D) department, which is in charge of designing
new products. They do not mention what software they use, then they prepare a prototype and
put it through different tests, before releasing it as a production-ready product. Stages common
to well-established R&D departments.

They have a great processing capacity, among which are: laser cutting, CNC rolling, robotic
punching, electrophoretic painting, among others. They also offer logistics services such as
transportation and customs procedures, design services, preparation of prototypes and fatigue
tests.

5
Market Information

Their customers:

Metalsa has its centers strategically located worldwide. We are one of the best options in
structural component solutions for light and heavy vehicles. Metalsa has its operations and
technology centers strategically located worldwide, providing integral support to its customers
delivered with success.

Metalsa is a Tier 1 supplier of structural components for light and commercial vehicles. The
ratings reflect the company’s solid market position as the largest supplier of light vehicle BOF
chassis in the Americas. Metalsa also is one of the main suppliers of commercial vehicle side
rails in North America and Brazil. The company has a solid record of expanding original

6
equipment manufacturer customer relationships and has a presence in Asia, mainly as a
supplier of commercial vehicle side rails. Robust Demand for Main Products: The company
derives around 85% of its revenues from the sale of chassis structures, which are used in both
full and midsize pickup trucks as well as large sport-utility vehicles. The relative strength of
pickup sales compared with other light vehicle classes has continued throughout the pandemic,
and consumer preference for these types of vehicles is expected to remain robust over the next
several years.

Structure of the company METALSA

The following is a summary of Metalsa S.A.'s organization chart.The plant management, public
relations, MOS (sustainability office), HD Business Partner and finance report directly to the
General Manager. (sustainability office), HD Business Partner and finance. Indirectly reporting to
the General Manager are the commercial, IT, purchasing and shared service management.

In turn, plant management is divided into eight important areas: quality, logistics, maintenance,
assembly maintenance, assembly, stamping, engineering, sustainability, and health and safety.
The company has a total of 280 employees, 160 of whom are in silver.

7
Metalsa is a company specialized in the automotive field manufacturing the internal structure of
a van (chassis), directed daily to achieve the success of its products in terms of shape, time,
specifications, costs and, most importantly, reliability and credibility in the guarantee that Its
products meet the required specifications the first time without the need for returns or alerts from
the customer when the already assembled chassis arrives. This part is essential and is known
as quality.

For Metalsa, "Quality is a way of life" is to say that as a person you have to always live with
quality and achieve quality in your life in order to achieve success in the future.

This way of thinking is communicated to all the company's personnel to motivate them to believe
that they are fundamental quality people for the elaboration of their products (chassis), since the
company's image worldwide is only one word: QUALITY always. What Metalsa is heard on
everyone's lips is QUALITY.

The structure of the company is very complex, it deals with various processes that work together
to reach a certain end and thus achieve the customer's requirements. One of the final processes
of the assembly of the chassis is ASSEMBLY where the product is welded and inspected, but
before that there are other processes that become the internal suppliers of this process. Let's
see a little about it:

8
Chrysler is the main client in the purchase of Metalsa chassis, so to begin with, Chrysler
generates it, that is, the client launches the project to be developed and selects the best option
on the market, considering quality, cost, professionalism, seriousness, delivery, among others.
Then Metalsa presents its project to Chrysler in a professional and dynamic manner and
mentions at all times the quality of the product to be developed, ensuring that it will be
maintained before, during and after the product.

Once the project is won, the engineering design of the processes begins to develop, whose
purpose is to see the customer's requirement, its specifications, assembly mode, total weight of
the chassis, size, caliber of the material, among others, and a construction begins. structure of
production lines through the designs drawn up to support and execute the operation of these
parts. If the line already existed but the customer's parts are other specifications, it is only a
matter of a reengineering process to redesign the operations to change.

In conclusion, all this leads us to the creation of processes which will be essential to
manufacture the assembly parts of the chassis where they will be assembled correctly.

In Metalsa there are 3 important ones for each project

● HYDROFORMING
● STAMPING
● ASSEMBLY
● PAINTING

9
Where the first two are in charge of processing the raw material in a determined specification
and being brought to their internal client, which is ASSEMBLY.

Now, if we take one of the warehouses that process parts for the assembly part, in this case
Hydroforming, we see that there is an order between the processes that in Metalsa are called
ENN (Natural Business Teams) where each ENN has a specific function for the assembly of the
chassis and not get entangled in trying to do the entire process in one single process and
therefore there is order and that each person who is in said ENN is soaked in detail in the
specifications of the part and its quality to the maximum. In this HYDROFORMING ship as well
as in the others there are between 8 to 10 ENN'S

10
Where is the Quality in the order of Metalsa?
The quality of the product is vital for the customer to feel satisfied with the products that Metalsa
provides for the assembly of their trucks, but how important is quality for them and in what
sequence do they handle it?

Metalsa puts in sequence the correct order of the attributes that are important for the
person-company and client.

1.- Safety
2.- Quality * Quality is 2nd place in the sequence of attributes
3.- Production
4.- environmental systems
5.- Continuous improvement

With this, it is evident that Safety, as in any firm, is the most essential aspect of their policy since
they are not going to attempt to comply first with the quality and production of the materials, if
necessary, putting the integrity of the worker at danger. Let's put it this way: Safety also speaks
well of the quality of the company because there is a completely safe work environment for a
worker and because the company responds to unsafe factors that could be harmful to the
workers themselves, they feel safe and can apply the necessary knowledge and adequate
attention to produce the components well.

Chrysler would not risk people to comply with the quality scopes, it would be something out of
the ordinary, the employee has to be trained and convinced that the care of their integrity
depends on them and thus be able to comply with the client's specifications.

Call them operational, administrative, or managerial start-up meetings; they share statistics and
changes of these points, first touching on the issue of safety and later on the issue of quality in
terms of processes, raw material scrap in excellent condition, customer satisfaction, client
reports, critical points, and continuous improvement.

Knowing what an ENN is and its specific functions, it is worth mentioning that each of these
processes comply with a series of quality methodologies that go from the smallest process

11
within the industry to applying it at a higher level in the company such as deliveries. and future
projects.

Methodologies that Metalsa applies to generate quality products

Metalsa is a Company convinced that quality begins with each of its employees and is further
developed through constant training in this very important branch and the culture learned in the
work environment, since it permeates new hires as well as that it lacks an area of ​opportunity in
the area of ​Quality.

“Ordinary people doing extraordinary things”

How is it that the customer is convinced that Metalsa provides Quality products?

Metalsa is a company recognized worldwide by sectors of the automotive branch for being one
of the most reliable and with a presence in various regions globally, since there are various
companies that could equally provide the same product to any of its customers who require the
chassis. But what is it that makes Metalsa feel strong and secure in the face of the competition?
Metalsa does not always have all the odds in its favor to win the project, even if we say that it
has the technology and knowledge to handle it, or committed and recognized employees.
worldwide or have sufficient capital that gives you security anywhere in the world.

The 5's Methodology

Starting with a fundamental one about the Quality and Production branch, we apply the 5's, a
methodology in our opinion that is fundamental in a company and more so for Metalsa since it
represents the image of order and the proper functioning of the processes to its maximum
capacity.

12
Compared to the global meaning of the 5's, Metalsa incorporates more technical words so that
its employees can better identify them.

These are the guidelines to keep in mind and adhere to both within the company and personally.
However, because the 5's affect the quality of the chassis, regardless of how impressive it may
seem, it can result in the loss of the chassis as scrap or even several chassis, or it can force the
loss of the assembly project.

A well-detailed example was the one that occurred on August 25th 2015 in Assembly Chrysler

Origin of the report: Metalsa Apodaca, México

Part involved: RH-149.1WB central spar against RHCUT PHAT-70WB front end Origin
process: Apodaca hydroforming

Turned into a red alert being reported directly from Chrysler, they detected a clogged burr in the
chassis assembly diameter in the central part of the finished product.
A chassis in its final process needs various processes for it to be finished in its respective area
within Metalsa, as we already mentioned in the Company's structure. Specifically, one of these
processes makes this diameter in a pneumatic operation and, once finished, it is sent to
assemble to the chassis part in its corresponding place. Subsequently, when making the hole in
the part, the resulting small part (GAP) is a burr, that is, the one that is separated from the raw
material in the operations process.

13
As this can be possible, the lack of 5's could be a negative factor for this to be carried out Since
the operator of the operation did not correctly apply this 5's methodology in his work station
which was saturated with burrs one of which leaked into the centerpiece and thus brought to
assembly.

Due to unfortunate circumstances, it was positioned in the center of the diameter, covering it
almost completely. Assembly, for its part, handles welding processes in its entirety in each
process and for this reason, the burr was more sealed in this process, strongly affecting the
quality of the product and deviating from the specifications in the same way and most
importantly, losing credibility before CHRYSLER, which can have as many more chassis that
could come in that condition checked, leaving Metalsa in a bad image.

14
Supply chain

15
Logistics

TERNIUM San Nicolas

Producer of metal rolls used as raw material for Metalsa

Metalsa. Apodaca

Merchandise is loaded on the Railroad to the KCS link for automotive products.

Monterrey link
Switched to new rails to transport automotive products bound for the United States.

16
Laredo , Texas

KCS has an Intermodal Terminal in which the merchandise is transferred to a trailer to be

transferred to Toyota Motor Manufacturing Texas (TMMTX).

San Antonio, Texas

The order is delivered to the TMMTX warehouse

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Supply structure:

- Policies and procedures, processes

- Examine the processes to see if they are being executed correctly

The supply chain is handled in a way that emphasizes the business's strength and the
trustworthiness we wish to express to our suppliers. The business is dedicated to improving
safety standards, generating profit, and ensuring safe and sustainable growth that supports an
operational infrastructure in line with its goals.

The Procurement section is in charge of all supplier contacts:

It establishes the appropriate commercial terms and conditions. The logistics department keeps
operations operating smoothly by communicating all requirements to suppliers so that they
follow the manufacturing schedule.

METALSA primarily purchases;

● Steel
● Extruded aluminum
● Fasteners
● Welding wire
● Wire forms
● Metallic stamping parts
● Coating chemicals.
● It also obtains the services and spare parts required to keep the firm running.

The company intends to establish long-term relationships with suppliers who share METALSA's
ethics and values.

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The company's supply chain partners must follow the Supplier Manual,
which includes the following:

Labor practices: Our partners must support freedom of association and effectively recognize
the right to collective bargaining. Furthermore, they must ensure the elimination of all forms of
forced and compulsory labor, and the effective elimination of child labor and any discrimination.

Anti-corruption: Must fight corruption in all its forms, including extortion and bribery.

METALSAS code of conduct: In all countries where we do business, business transactions

must be conducted honestly, fairly and with respect.

Humanrights Businesses should support and respect the protection of internationally

proclaimed human rights and make sure that they are not complicit in any type of abuse or
infringement.

Environment: Organizations are required to support a precautionary approach to

environmental challenges and encourage the development and diffusion of environmentally
friendly technologies.

Restricted substances: Suppliers must assure compliance with all governmental and safety
requirements on restricted, toxic, and hazardous substances used in the manufacture of
products.

Through the METALSA Supplier Business Assessment, it is executing a comprehensive

assessment of the supply chain.
The company uses it to select new suppliers and follow-up on the existing performance and rate
each supplier’s quality, environmental and social practices.

If the enterprise detects an opportunity for improvement or non-compliance with their guidelines,
METALSA requests corrective measures so that the relation continues; subsequently, they must
be reexamined to ensure they improved.

The questionnaire includes topics regarding

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 ● Quality
● Employment conditions,
● Human rights,
● Ethics,
● Corporate governance,
● Legal compliance,
● Sustainability, as well as
● Criteria aligned to institutions and standards like International Automotive Task Force
(IATF), Automotive Industry Action Group (AIAG), ISO 14001, among others.

Our research indicates that the aforementioned protocols and procedures are followed correctly
and without any problems, and the business is constantly looking to update or improve the
protocols in accordance with modern trends so METALSA can ensure a better relationship with
its suppliers as well as a high standard of products for its customers.

SIX SIGMA

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Interview
1. How does your supply chain work? Related to the processes you have and the
flow of them.
The reception of raw material starts the manufacturing of the chassis. Metalsa receives steel
coils, paint, nuts, bolts, screws, and other inputs from a variety of suppliers. In addition to
Metalsa's purchases, Metalsa also receives parts consigned by customers for use by customers
to be used in their respective products. With the exception of steel coils, Metalsa picks up
orders from all its suppliers with its own transportation. Since the different parts supply different
stages of the process, they are sent to different internal merchandise warehouses according to
their use.

The first quality control of the process is carried out at the reception of the goods. The goods
received are verified with a scale and the weights of the different racks received are recorded.
The expected values for each rack and product are recorded, and if an anomaly is detected, the
consignment is rejected. In addition, visual inspection and a more exhaustive control of some
key parts is carried out. Currently there is a policy of 5 days of stock, with the exception of some
inputs that have a minimum volume per purchase or imported inputs that should be ordered in
larger quantities. For consigned units, customers often buy in large quantities, but Metalsa gives
up a limited number of positions within its warehouse for these products, so the storage of this
surplus is borne by the client and it is delivered to Metalsa once the units already received are
consumed.

Seen at a general level, the flow of materials in the plant follows the reception, stamping,
washing, welded, painted and dispatch. Within each sector there are several stations in different
stages in which the materials and the intermediate product are moved and processed.

In no instance is the movement carried out automatically or through some kind of as a guide.
The racks are stored after each operation and it is an operator with a forklift who is in charge of
supplying the different stations and removing the finished product from the same. The
replenishment system follows a transfer kanban setup using cards with a standardized format to
communicate supply and withdrawal needs of finished product of each station. Each Kanban
card is used to communicate the need to transfer a rack full of intermediate products from a
predecessor station (upstream) to the next station (downstream). All stations are provided with a

21
buffer of incoming kanbans and another buffer for outgoing kanbans, as well as a storage point
for incoming material and a storage point for outgoing material. Through the cards, the
operators of each station communicate to the logistics operators its supply level in terms of
“production hours”. The operators perform rounds of tours of the plant and they replenish the
different stations according to criteria.

2. Explain your logistic process

In the auto parts business, the location of the plant is of great importance, since its economic
influence in terms of lower logistics costs and better delivery times is of great importance.
Economic influence in terms of lower logistics costs and better delivery times become a
differential when selecting a supplier.

The Just in Time concept is becoming more and more present in the industry, where
manufacturers tend to have the smallest stock of products in stock, tend to have the smallest
possible stock of raw materials and require at short notice just what is needed for the next few
hours just what is needed for the next few hours of production. This phenomenon adds
complexity to the production planning of their suppliers,orders they receive do not follow an
established pattern or distribution, but rather the quantity and variety of products requested
quantity and variety of products requested is different for each order.
In terms of logistics, this implies a greater number of daily deliveries for each supplier. In the
case of a product of large dimensions, such as the chassis manufactured by Metalsa, where the
cost of the product is very high. Metalsa manufactures, where the unit transportation cost is
high, logistics plays a fundamental role and becomes a major advantage.

3. What are your policies and procedures guidelines?

Metalsa is a company committed to complying with legal and environmental aspects. That is
why it has ISO 9001:2008 certification, which establishes the standards of the Quality
Management System, OHSAS 18001:2007, is based on a cycle of continuous improvement
called “PDCA” cycle (Plan-Do-Verify and Act) for the System of Occupational Health and Safety
Management and ISO 14001:2004, establishes the requirements laws to improve environmental
risk management.

Just as the company keeps a strict control of the qualifications and permits it has, its suppliers
are also required to hold and present the certifications, such as waste treatment special and

22
pathogenic, liquid and gaseous effluents, hydraulic resources, pressure tests and annoying
noises.

4. What were the logistical challenges for the 2021-2022 period?

During 2020, due to the COVID-19 pandemic, our supply chain suffered stoppages in production
and reduced sales. Also, we had issues regarding the employees and the production, since they
were afraid that they could get the virus, some of the employees stopped going to work,
stopping the production.

COVID-19 disrupted the steel industry on many different levels. From rising metal raw material
prices to decreases in demand, metal manufacturers and suppliers felt the heat (no pun
intended. For example, global crude steel production decreased by 1.4% in the first 3 months of
2020 compared to the same period in 2019. Although steel was declared an essential industry,
several factors impacted the demand for steel production and metal demand. From construction
halts to high transportation costs due to air travel restrictions and partially or fully closed
borders.

5. How were these challenges solved?

Since we saw that the challenges were focused on several areas, we provided the next
solutions for each one:
COVID-19 COUNTERMEASURES
PEOPLE’S SAFETY FIRST
● Created the Pandemic Response Team.
● Developed a Playbook with safety procedures to ensure collaborators wellbeing.
● Conducted audits to ensure processes are being executed.
● Implemented home office and kept constant communication with our collaborators.
● Implemented the mandatory use of face shield and protective equipment policy.
● Rolled out a COVID-19 Prevention Awareness Campaign with weekly notifications.

OPERATIVE CRISIS MANAGEMENT

● Created the Crisis Management Committee with weekly meetings to review the
pandemic’s impacts on Metalsa, such as: volume, customer and supplier updates;
COVID-19 in facilities; operation issues and constraints.

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 ● Worked closely with our customers to ensure rapid restart of operations and to manage
visibility and certainty of future volume.
● Strengthened communication throughout our supply chain to protect suppliers and
visualize any potential supply issues in advance.

LIQUIDITY AND PROFITABILITY

● Created the Liquidity Committee with weekly meetings to maintain focus on cash flow ,
cash availability and review credit lines.
● Implemented an organizational restructuring.
● Prioritized investments in critical platforms and delayed non-critical CAPEX investments
for 2021.
● Optimized operative cost structure to lower breakeven point.
● Reduced inventories and all non-essential expenses.

Furthermore, we developed the COVID-19 Update Template to send to all collaborators of

confirmed positives, active cases and returned to work; a questionnaire to detect all possible
COVID-19 cases; and created a COVID-19 Awareness Newsletter, which was mailed to all team
members with the status of the national situation of COVID-19, safety measurements and
recommendations to stay safe; a Safe Restart of Operations Checklist and a
Coronavirus-Managing Stress Campaign.

6. How will you ensure that these won't happen again?

We will be ensuring these by implementing more frequent training about cases like covid, to
ensure that in the given case that it happens again, they will be prepared to handle it and be
conscious about the decisions they make. Also, there will be contingency plans very well
thought to be prepared when an incident that can affect the sales and profit occurs. There will
be more monitoring and a strict administration.

24
General conclusion (2 pag)

The importance of logistics and its procedures in a company cannot be overstated. Logistics is
the lifeblood of any organization, enabling the smooth flow of goods, information, and resources
from one point to another. It encompasses a range of activities such as procurement,
transportation, warehousing, inventory management, and order fulfillment, all of which are vital
for the success of a business.

First and foremost, logistics plays a crucial role in customer satisfaction. By efficiently managing
the movement of goods, logistics ensures that products reach the right place, at the right time,
and in the right condition. This timely and accurate delivery enhances customer experience,
builds trust, and fosters long-term relationships with clients. Moreover, logistics enables
businesses to expand their operations into new markets, both domestic and international, by
establishing robust supply chains and ensuring seamless distribution.

Lastly, effective logistics management enables better decision-making and strategic planning.
By leveraging data analytics and advanced forecasting techniques, logistics professionals can
gain valuable insights into demand patterns, inventory levels, and market trends. These insights
facilitate accurate demand forecasting, inventory optimization, and effective resource allocation.
Consequently, companies can make informed decisions, anticipate market fluctuations, and
respond proactively to changing customer demands, giving them a competitive advantage in the
marketplace.

In conclusion, logistics and its procedures are of paramount importance in a company's

operations. From ensuring customer satisfaction and cost management to maintaining a
competitive edge and promoting sustainability, logistics impacts every aspect of a business. It is
a critical function that enables organizations to streamline their supply chain, maximize
efficiency, and achieve their business objectives. Companies that recognize the significance of
logistics and invest in its optimization stand to reap numerous benefits, ultimately leading to
long-term success and growth.

That is why knowing about logistics is very important in companies, because it enhances that all
the processes are made accurately and with the least possible use of resources to improve
efficiency. As we have seen in the document, Metalsa being a manufacturer industry, has to
have excellent quality processes and be careful when making everything because it will be the

25
consequence of the whole thing. They need to be extra careful on their processes and just how
they explained, to check everything twice and even more to ensure customer satisfaction.

We do believe that Metalsa does a good job at their logistical processes and with the supply
chain too, because they do not accept any supplier just because, they actually pay close
attention to the ones that are better, more reliable and will not make them get delays, and that
they can make sure that they can always trust them with the materials.

Also, they apply excellent quality controls on their processes, starting with a fundamental one
about the Quality and Production branch, they apply the 5's, a methodology in our opinion that is
fundamental in a company and more so for Metalsa since it represents the image of order and
the proper functioning of the processes to its maximum capacity. Compared to the global
meaning of the 5's, Metalsa incorporates more technical words so that its employees can better
identify them.

In conclusion, we can state that Metalsa knows the logistics keys to have a great system in
which everything performs perfectly and makes them be the company that they are today.
Understanding the supply chain and logistic process allows a company to optimize its
operations, reduce costs, and improve efficiency. It helps a company identify areas of
improvement and streamline its processes. This leads to better customer service, increased
profitability, and a competitive advantage in the market. Furthermore, having a clear
understanding of the supply chain and logistic process helps a company to manage risks
effectively. By knowing the potential risks and disruptions, a company can implement
contingency plans to minimize the impact of any disruptions.

Summarizing , a comprehensive understanding of the supply chain and logistics process is vital
for the success of a company. It enables cost optimization, enhances customer satisfaction,
mitigates risks, provides a competitive edge, promotes sustainability, and fosters agility. By
investing in knowledge and continuous improvement in these areas, businesses can achieve
operational excellence and drive long-term growth. That is why it is fundamental for companies
to make sure that all of their processes are being administered perfectly and coherently to the
previous organization. It is also key to have contingency plans when dealing with issues such as
covid, so the company can be prepared and knows how to handle the situation without losing
much money and resources.

26
 Individual conclusions

Maria del Cielo Gallardo Osti 2079296

Metalsa is a leading global company in the automotive industry that specializes in the
design and manufacturing of structural components for light and commercial vehicles.
With a strong focus on innovation, quality, and sustainability, Metalsa has established
itself as a key player in the industry. However, a crucial aspect of its success lies in its
efficient and well-managed logistics operations.

Metalsa's logistics operations play a vital role in ensuring the smooth flow of materials,
components, and finished products throughout its supply chain. The company
understands the importance of timely and accurate delivery to meet customer demands
and maintain its competitive edge. To achieve this, Metalsa has implemented a robust
logistics strategy that encompasses various aspects, including transportation,
warehousing, inventory management, and distribution.
Transportation is a critical component of Metalsa's logistics operations. The company
relies on a well-connected network of transportation providers to move raw materials
from suppliers to its manufacturing facilities and deliver finished products to customers
worldwide. Metalsa collaborates closely with its logistics partners to optimize routes,
minimize transit times, and reduce costs. This enables the company to ensure timely
delivery and enhance customer satisfaction.

In terms of warehousing, Metalsa operates strategically located facilities to store raw

materials, work-in-progress inventory, and finished products. These warehouses are
equipped with state-of-the-art technology and efficient inventory management systems
to track and manage inventory levels accurately. By maintaining optimal inventory
levels, Metalsa can meet customer demands promptly while minimizing carrying costs
and inventory obsolescence. Metalsa's logistics operations also emphasize distribution
efficiency. The company works closely with its distribution partners to streamline the
process of delivering products to various markets. By leveraging their expertise and

27
local knowledge, Metalsa can navigate complex distribution networks and reach
customers effectively. This approach enables the company to respond quickly to
changing market demands and provide superior service to its customers.

Moreover, Metalsa understands the importance of sustainability in its logistics

operations. The company actively seeks environmentally friendly transportation
solutions and adopts measures to minimize its carbon footprint. By optimizing logistics
routes, reducing empty miles, and utilizing alternative fuels, Metalsa aims to reduce
greenhouse gas emissions and contribute to a greener environment. Metalsa's logistics
operations are supported by advanced technology and data analytics. The company
leverages cutting-edge software systems to monitor and optimize various aspects of its
logistics operations. Real-time tracking and data analysis enable Metalsa to identify
bottlenecks, streamline processes, and make data-driven decisions to enhance
efficiency and customer service.

Overall, Metalsa's logistics operations demonstrate a strong commitment to meeting

customer needs, optimizing efficiency, and promoting sustainability. By implementing a
comprehensive logistics strategy that encompasses transportation, warehousing,
inventory management, and distribution, Metalsa has established itself as a reliable and
agile partner in the automotive industry. The company's emphasis on innovation, quality,
and sustainability positions it well for future growth and success.

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Ana Elena García Arroyo 2079316

Metalsa, as a manufacturer, must prioritize its supply chain management and

administration of logistic processes in order to ensure operational efficiency and
maintain a competitive edge in the industry. The supply chain is a critical component for
any manufacturing company, and Metalsa is no exception. By effectively managing its
supply chain, Metalsa can optimize the flow of raw materials, components, and finished
products, ensuring that the right materials are available at the right time and in the right
quantities. This helps to prevent disruptions in production, minimize inventory costs, and
improve overall customer satisfaction.

Furthermore, efficient administration of logistic processes is essential for Metalsa to

streamline its operations and meet customer demands effectively. This involves
managing transportation, warehousing, and distribution activities in a way that
minimizes costs and maximizes responsiveness. By implementing advanced logistics
technologies, such as real-time tracking systems or inventory management software,
Metalsa can enhance visibility and control over its supply chain, leading to better
coordination and faster response times.

There are several benefits that Metalsa can achieve by focusing on its supply chain and
administration of logistic processes: Improved Cost Efficiency: By optimizing the supply
chain and logistics, Metalsa can reduce costs associated with transportation, inventory
holding, and warehousing. This can result in improved profit margins and increased
competitiveness in the market. Enhanced Customer Satisfaction: Efficient supply chain
management enables Metalsa to deliver products to customers in a timely manner. This
leads to improved customer satisfaction, repeat business, and positive brand reputation.
Increased Operational Agility: With effective supply chain management, Metalsa can
quickly adapt to changes in customer demands, market conditions, or supplier
disruptions. This agility allows the company to respond swiftly and maintain a
competitive advantage. Stronger Supplier Relationships: By establishing robust supply
chain processes, Metalsa can build stronger relationships with its suppliers. This can

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lead to improved collaboration, better pricing agreements, and access to innovative
technologies or materials. Sustainability and Risk Mitigation: A well-managed supply
chain can also help Metalsa address sustainability goals by reducing waste, optimizing
transportation routes, and selecting environmentally friendly suppliers. Additionally,
proactive risk management within the supply chain can mitigate disruptions caused by
natural disasters, geopolitical events, or unforeseen circumstances.

In conclusion, Metalsa, as a manufacturer, must prioritize its supply chain management

and administration of logistic processes to ensure operational efficiency,
cost-effectiveness, customer satisfaction, and overall competitiveness in the market. By
investing in these areas, Metalsa can achieve a streamlined supply chain, responsive
logistics, and a solid foundation for sustainable growth.

Overall, it can be said that Metalsa has a great administration because they know the
market and their products well. They also have implemented a very impressive system
of production, going from the procurement and selection of suppliers, where they apply
strict regulations to make sure they fit perfectly, to the customer satisfaction, where they
respond to all the quality processes and regulations to maintain their customers happy
and exceed their needs. Besides all these, Metalsa knows how to handle extreme
situations and has been able to overcome them through consistency and improvement.
Those are keys in any company, all of them should focus on meeting these needs and
establishing laws and policies to make them right. If not, there will be more challenges
and issues that will not be as easy to solve as they would be if they had been prepared
before.

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Naomi Rachel Garcia 2079110

Metalsa has solidified its position as an excellent and innovative company in the steel
industry. Over the years, the company has demonstrated a strong commitment to
excellence, technological advancements and sustainable practices that have enabled it
to become a leading competitor in the market. Metalsa's focus on research and
development and its ability to adapt to changing market needs have played a key role in
their success.
Metalsa has created a reliable supply chain to ensure the efficient flow of materials and
products. The company carefully manages its purchasing processes, working closely
with suppliers to maintain high quality standards and timely deliveries. By optimizing its
supply chain, Metalsa minimizes production delays, reduces costs, and improves
customer satisfaction.They have developed a reputation of trustworthiness with clients
because of their persistent commitment to producing high-quality metal goods.
Because of the firm's strict quality control procedures, customers can feel confident that
its products constantly meet or surpass industry requirements. Metalsa has earned a
reputation as a dependable supplier in the industry by putting quality first.

The company's success also comes from their ability to adapt to changing market
needs. The company embraces technological innovation, and invests heavily in
research and development to stay ahead of industry trends. By exploring new
manufacturing processes, materials and product designs, Metalsa is constantly
improving efficiency and offering superior products to its customers. This focus on
innovation allows the company to meet the changing needs of its customers and stay
competitive.The company recognizes the importance of environmental responsibility
and implements initiatives to minimize its ecological footprint. Through energy-efficient
practices, waste reduction, and emissions control, Metalsa aligns with global efforts to
combat climate change. This dedication to sustainability not only showcases its
corporate social responsibility but also appeals to environmentally conscious customers,
enhancing its reputation and market position.

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Metalsa recognizes the importance of its workforce in driving success and invests in
talent development programs. By nurturing skills, fostering innovation, and promoting a
collaborative culture, the company ensures its employees are equipped to deliver
exceptional results.
Sustainability and corporate social responsibility are integral to Metalsa's operations.
The company actively implements eco-friendly practices, reduces waste, and engages
in community initiatives. By integrating sustainability into its business practices, Metalsa
not only meets regulatory requirements but also attracts socially conscious customers
and builds strong stakeholder relationships.

In summary, Metalsa Company's continued success in the metals industry is due to its
effective supply chain management, strong customer focus, commitment to
technological advancement and global market presence. By continuously optimizing the
supply chain, understanding and satisfying customer needs, incorporating innovations
and strategically expanding its business, Metalsa has strengthened its leading position
in the industry.

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Roberto Flores Villalobos 2079597

From my point of view Metalsa is a private company and a subsidiary of Proeza Group.
They manufacture tier 1 and tier 2 structural components for the light and commercial
vehicle markets. We are constantly growing and innovating. Having state of the art
technology that keeps products at the forefront. Our portfolio includes light duty frames,
space frames, suspension modules, body structures, safety systems, transmission
modules and fuel tanks for passenger cars and light trucks as well as chassis frames,
side rails and cross members of heavy trucks and buses. The engine of the company
and everyone works together to achieve our vision. Best global option for automotive
structures. Our culture is a strong asset to foster collaboration and communication in
order to support efficient decision-making processes. We continually strive to eliminate
barriers of collaboration and seek for human development and the well-being of our
communities. We create a multicultural team of more than 13,000 employees around
the world giving Metalsa the opportunity to offer solutions to the customer with a
strategically global perspective. The company Manufacturas Metálicas Monterrey was
established in 1956 in Nuevo León, thanks to the entrepreneurial vision of Guillermo
Zambrano Gutiérrez. The company was initially dedicated to the manufacture of flying
buttresses for the electrical industry; but almost five years later it established an alliance
with the company A.O. Smith specialized in the manufacture of auto parts, especially
chassis. Despite its change of business, it was not until almost 20 years later, in 1980,
that the company changed its name to what it currently has: Metalsa. As such, it is part
of Grupo Proeza, a corporation that acquired one hundred percent control in 2007. In an
interview with Comercio Exterior Bancomext, Leopoldo Cedillo Villarreal, General
Director of Metalsa, explains that the company produces structural components for light
and commercial vehicles in Mexico, including chassis for trucks, suspension modules,
gasoline tanks, and body structures. , in addition to beams and crossbars for medium
and heavy trucks. Metalsa has had tremendous growth: not only has the number of
products it offers increased, but it has also managed to establish manufacturing plants
and technology centers in 14 countries on five continents.

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Although its development has been worldwide, Metalsa maintains its headquarters in
our country, in addition to the fact that it still produces 38% of its global sales of which
20% remains in Mexico and the rest is exported to the United States and Canada.
Metalsa globally generates more than twelve thousand jobs, of which five thousand
correspond to Mexico. Due to its volume of production, in the American continent
Metalsa occupies the first place in the manufacture of chassis and the second place in
the production of trucks. It recently received recognition as a Family-Responsible
Company, and has been obtaining the Socially Responsible Company for seven years.
On this, the company's general director expressed: In its sustainability model, Metalsa
has reinforced its commitment to a better quality of life for its employees and their
families, establishing comprehensive development workshops, supporting the children
of its employees with help school and job search, as well as volunteer activities that
help raise awareness and make better people and citizens. The company has
diversified its markets with clients in Germany, Argentina, Australia, Brazil, China, the
United States, India, South Africa, Thailand and Turkey. It supplies companies such as
BMW, Chrysler, Daimler, Ford, General Motors, Nissan, Paccar, Toyota, Volvo and
Volkswagen, among others. For export, Metalsa has obtained support from
organizations such as ProMéxico, as well as valuable information provided by
embassies and consulates when the company has ventured into new markets. In its
sustainability model, Metalsa has reinforced its commitment to a better quality of life for
its employees and their families abroad. The support it has received from development
banks has also been very important. In this sense, the general director of Metalsa
mentions that this company has credit lines committed to the National Foreign Trade
Bank and Export Development Canada, in addition to the fact that since 2005 it has had
the support of Nacional Financiera through the Productive Chains Program . However,
Cedillo Villarreal encounters some problems in his company's export work, among
which documentation and authorizations stand out, which he considers a challenge in
foreign trade flows, in addition to the high costs related to the national highway system. .

Finally, he is hopeful about Metalsa's export prospects, since he expects them to

continue to pick up as the international economy improves. Thank You

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 Appendix

Email: NormanR10@gmail.com

Telephone: 812-7342865

Address: Av. Francisco I. Madero 2750 Pte, 64000 Monterrey, Nuevo León.

Postal Code: 66897

Date of Birth: September 11th, 1981.

Age: 42 Years Old

Job Position: Purchasing Manager

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