Q&A with Rapido cofounder, Roberto Icaza, on Rapido’s Cross-Border Logistics Services

Rapido connects hyper-growth logistics and supply chain organizations with the best talent in Mexico to scale efficiently, operate effectively, and provide superior customer service. In addition to staffing, training, building, and managing teams in carrier and customer sales and support roles, back-office support, and technology roles, Rapido also offers expertise and staffing options to support cross-border solutions. We recently caught up with Roberto Icaza, Rapido’s President and cofounder, to learn more about Rapido’s cross-border services.

Q: What trends are you seeing on cross-border activity?

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A: The cross-border logistics market between the US and Mexico is experiencing significant growth due to several factors. The first is nearshoring trends — many companies are relocating manufacturing closer to the US to mitigate supply chain risks and reduce costs. Mexico, with its proximity and trade agreements like USMCA, is a preferred destination. Nearshoring efforts are causing the number of trucks crossing the U.S.-Mexico border each day to soar from the current total of nearly 35,000. The second is the increased complexity of cross-border logistics — moving freight across the US-Mexico border involves managing multiple carriers, customs brokers, and extensive documentation, making it a challenging but lucrative market for specialized logistics providers.

Q: What challenges are US-based logistics companies experiencing when it comes to cross-border?

A:  I think US-based logistics companies are seeing seven main challenges.

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1. Starting! – Many US companies simply don’t know how to get started or understand the process. Without understanding the process, moving cross-border freight is operationally constraining.
2. Sourcing Capacity – It’s important to identify the right base of US and MX carriers to provide the capacity needed.
3. Pricing – Without the ability to source, challenges become centered on how to properly price opportunities.
4. Compliance – There is a lack of understanding on compliance needs, rules, and regulations.
5. Lack of SME Stateside – Without dedicated and specialized strategic people on the US side, it’s challenging to drive sales and support operations efficiently.
6. Language Barriers – Language barriers can lead to the inability to coordinate with facilities in Mexico, carriers, border parties, and compliance needs.
7. Partnerships – Excellent partnerships are needed in Laredo and other border cities for warehousing or customs brokerage need. Additionally, having the right partners to support insurance capabilities in Mexico if needed, as well as legal and contractual advice.

Q: Why is Rapido a good option for cross-border?

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A: Rapido checks the boxes on all the challenges that many US-based companies face. There are three main ways to think about Rapido’s cross-border services.

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1. ‍We can help US-based companies get started. With Rapido general advisory services, we demystify all things cross-border. We will guide you on what to expect, what to think through when starting a cross-border program, give you tips on managing the complexities of cross-border, and make introductions to key strategic partnerships that will be important for proper execution in areas such as legal, carrier sourcing, Laredo warehouses, insurance, carrier data base, and more. ‍
2. We can provide an in-house SME to help build a cross-border team. With Rapido you can staff an experienced SME who understands cross-border operations and will help build a high-performing cross-border team. ‍
3. We can work with a US-based team’s own in-house SME. Rapido will help you build aSpanish speaking team to work under an in-house SME.

Q: What do Rapido teams do differently?

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A: Rapido makes hiring and retaining talent easier. We have experience building high-performing teams across multiple disciplines including cross-border.

To learn more about Rapido’s cross-border program, get in touch today!