Frontier: infrastructure developer with logistics experience

Logistics is gaining importance and evolving into a crucial industrial activity worldwide, and Mexico, as one of the most important Latin American markets, is included in this trend. For retailers, logistics is key to satisfying customers’ needs and retaining clients. For industrial warehouse developers, logistics represents an opportunity to offer their services to various big companies, which is currently Frontier Industrial’s goal. 

By selling industrial land and developing industrial buildings for lease in Mexico, and working with big enterprises such as Amazon in Merida, Yucatan, we are capable of developing important projects related to logistics activities for companies looking to profit from nearshoring to Mexico.

Gaining knowledge of logistics dynamics

Developing projects for Amazon and other clients in various locations in Mexico has allowed us to affirm that we have the experience needed to work on any logistics building that an enterprise may require and to meet specifications succesfully. For this, it’s important to understand the business dynamics and the different needs of each type of building.

Warehouses and distribution centers are different

It’s possible to think that there is no difference between logistics buildings. Still, some needs and specifications go beyond “big logistic platforms” when talking about large buildings of 25,000 m² or more, which are located far from cities and highly automated; “cross-docking buildings, for fast movement of merchandise and located near cities,” and “last mile buildings, the last point between stores and customers.”

Keys to distinguish warehouses from distribution centers and fulfillment centers

• Warehouses are used to store products. In a distribution center, there are activities such as product mixing, packaging, cross-docking, and order fulfillment; a fulfillment center generally holds goods for short periods before shipping them to customers, working with e-commerce companies, retailers, and big corporations.

• Distribution centers usually serve B2B customers, but a warehouse can handle both B2C and B2B operations; a fulfillment center ensures that customers who place orders receive their products promptly, acting as a “last mile logistics building.” 

• A distribution center stores goods for shorter periods than a warehouse, but the flow speed through a distribution center is higher than the flow through a warehouse. Like in distribution centers, inventory doesn’t sit in fulfillment centers long. 

• Distribution centers’ operations are more complex than those in warehouses, so distribution centers have advanced technologies to process orders, manage transportation, and manage the warehouse.
  
  
• Distribution centers are customer-centric and allow for quick delivery of products to clients, while warehouses are designed to store products efficiently. 

• Retail and warehouse orders are usually shipped from distribution centers; unlike these buildings, warehouses don’t serve external customers.

>> You might be interested: Material flow schemes in warehouses <<

Amazon: a demonstration of success

Frontier Industrial has successfully developed a distribution center for Amazon on a 78,741 m² plot of land with two access points from the federal way 261 in Merida-Progreso. This industrial park is now the closest one to Merida International Airport.

The main building, a Class A structure explicitly designed for the e-commerce company, spans 19,200 m² and includes the following features:

• Tilt-up walls made of concrete.
• Concrete floors.
• 30 platforms and access ramps.
• 2 booths for regular vehicles and one for heavy vehicles.
• Fire protection system.
• Offices and machine room.

E-commerce and logistics require different types of buildings to meet customer needs and ensure faster product deliveries. By understanding the dynamics of each structure, we have developed projects tailored to the exact requirements of clients such as Amazon and Liverpool, both in logistics, with installations in Guanajuato and Yucatan, the first one, and the State of Mexico for the second one.

Frontier Industrial offers industrial land for sale and industrial buildings for rent in Mexico’s main industrial locations to support and enhance industrial activities in the country. We also specialize in Build-to-Suit projects, and we can assist enterprises interested in taking advantage of nearshoring to Mexico by helping them establish their manufacturing centers. Contact us to develop your project.