Rudy Paniagua, President at Panasonic Logistics Solutions of America, discusses his experiences as a supply chain professional.
udy Paniagua has worked in supply chain for over 20 years, a journey that lead him to the role of President at Panasonic Logistics Solutions of America, which is owned by Panasonic North America. Rudy explains, “We started as a separate company called Sanyo. We wanted to take what we had offered internally for the last 20+ years and go out to market with it. Our logic is that if our own company can trust us to do it, we can do it for external companies. Panasonic has a wonderful name in the marketplace. However, we are
primarily noted by the general public as being a manufacturer. We are trying to change that mentality. We are business to business, and 90 per cent of what we do isn’t related to manufacturing. My role is to set the new agenda and plan strategically for it.”
Recent years have seen supply chains evolve as a result of the quantity of information available. Rudy continues, “When people used to think about supply chains, trucks and warehousing would spring to mind, not analytics and
optimisation. In the last 10 years, software has really come to the fore. Anyone with the right support can become a major player. How does it affect manufacturers and distribution centres? Software optimises the supply chain so the consumer can see the benefits, with prices coming down, for example.”
The Covid-19 crisis was a worldwide phenomenon, which Rudy says had an effect on supply chains everywhere. He explains, “It was pretty bleak about a year ago. Covid had a major impact on inflation and
economies all around the world. I think it is starting to stabilise, but what we are now going to be wrestling with is the economy. America is a big player and can drag down a lot of other economies, so inventory will start to back up in the warehouses because consumers are not going to be buying as readily as they used to. I believe warehousing will take on a paramount role in the next 12 to 18 months.”
Rudy speaks of the current trend for nearshoring, highlighting Panasonic Logistics Solutions
Hamson VP Operations
Paniagua President
of America’s plans in Mexico. He continues, “Mexico has a lower price point compared to the US and Canada, but it is closer than China. We are seeing a lot of companies announcing investments in Monterrey, Guadalajara and Mexico City. US companies are maybe not opening their own facilities, but they are investing billions of dollars in bringing in people. There was a recent announcement that the US is investing as much as $4million to bring semiconductor manufacturers into Mexico. It was always more economical to keep it over in Asia, but not anymore. I think nearshoring is
going to hit some all-time highs. It is already booming, so we can expect it to continue for the next 18 months. People who never did it before for whatever reason are going to show up for the party!”
In terms of the technology trends coming through, Rudy believes forecasting is big news right now. He explains, “You never used to be able to predict what was going to happen. Forecasting is important because it gives companies the ability to react before there is a problem.
If your original plans hit a snag, the software is able to predict it before it
happens. Some of the most powerful software out there is coming from the software manufacturers working with 3PLs because they are only paid to think about one thing. They are just dealing with analytics. Five years ago, I would never have thought we would get so sophisticated. It has happened extremely quickly.”
What kickstarted the boom in predictive software? Rudy answers, “Companies started transforming digitally, and Covid was a driving factor for innovation. There were so many variables that arose during Covid, and people started asking
what they could do to help mitigate the effects, so software designers from the 3PL sphere stepped in to take software to the market. Digitalisation is key because people wanted to get away from paper and they needed their information to be accessible years into the future. In addition, you can access your inventory anywhere in the world 24/7 thanks to the cloud. This is something that was not available before.”
In an ideal world, you need the right software and the right people, but Rudy says that if he had to choose between the two, he would champion the people. He explains, “Software is great, but I always think that the human element and the experience they bring cannot be replicated. If you have both, you really have a robust ecosystem in which to operate, but the people are paramount. I would put them at number one. I don’t think we are ever going to see people
“Five years ago, I would never have thought we would get so sophisticated. It has happened extremely quickly”
replaced by machines. Some AI can step in to perform mundane, repetitive tasks, but I have seen too many ambiguous answers, where only an experienced human can cut through the fog to make the right decision. I doubt we will get to the point where AI is able to do it and we are just monitoring it all. At the end of the day, for me, people are what make the world go round.”
When building a strong team, Rudy says he looks for people with an aptitude to learn. He continues, “I am always looking for smart people. That does not mean academics, but people who have the ability to absorb information, process it, and utilise it. With that kind of individual, you can teach them almost
“Software is great, but I always think that the human element and the experience they bring cannot be replicated”
anything, and they can use it and absorb it. For me, it is not about experience, but your capacity to learn and your willingness.”
Supply chain is super-variable, with a lot of different moving parts; some software-driven, some market conditionsdriven, and others peopledriven. Rudy says, “All the variables are in the pot getting stirred around, and you as a supply chain professional have to try to make sense of it all. It is a very dynamic industry in which plans can change within hours, often by no fault of your own. You have to be flexible – and a very calm person – to be able to work in supply chain.”
Forming partnerships with other companies is a key ingredient for success. Rudy explains, “If you have partners that share the same vision, it makes the path a lot easier. If your partner has a different agenda that they have not shared with you, it will make the goal even more difficult to reach. If you cannot agree on how you are going to get there, you are really going up a mountain.”
Panasonic Logistics Solutions of America has partnered
“We are very energetic over here, and it feels really good!”
with KWE Logistics for over 20 years. Rudy elaborates, “I am really happy with our partnership with KWE Logistics because they have extended our reach globally. KWE Logistics is a company based in Japan, and because of our origins growing up in Japan, we have an infinity with them. We seem to speak the same language and understand each other. They give us a presence in Asia because they have hubs throughout. We purchase, bring in and export many parts from Asia, so having this partner in place that knows all the backchannels can help us negotiate pricing. Without it, we would struggle to expand into Asia. When other companies did not have the means to bring things out of Asia due to the lockdowns, we were able to carry on, and that was down to our partnership with KWE Logistics.”
So, what does the future have in store for Panasonic Logistics Solutions of America? Rudy answers, “Our strategic plan is to expand extensively within Mexico, with nearshoring driving that bus, and we are opening up warehouse distribution facilities in Monterrey, Guadalajara and Mexico City, among others. We have two large warehouses right now, but we want to open up another five within the next three years.”
A value-added service will be Panasonic Logistics Solutions’ ability to look after all its customers’ transportation needs in Mexico. Rudy explains, “It might sound simple, but we want to handle all your freight requirements in Mexico, up and down into the United States, with just one call. If you need to move goods, store them, pick and pack, or bonded warehousing, we want to be that goto call. When bringing goods up or down, you need to clear US customs, and in some cases, US and Mexico customs. We offer full brokerage to deal with all the paperwork and make sure you are not going to get in trouble. The end benefit is cost savings because you will be taxed heavily if you are not compliant.”
Rudy is super-excited to be steering this particular ship at Panasonic Logistics Solutions. He concludes, “There is a fire here that we have probably not seen since 2015. I feel that we are through the worst of Covid, and there is a renewed enthusiasm to talk to people, have meetings, and add value to people’s businesses. We are very energetic over here, and it feels really good!”
For further information on Panasonic Logistics Solutions of America, visit www.na.panasonic.com/us/ logistics-solutions
www.na.panasonic.com/us/logistics-solutions