Lean & Mean: A UPS motorcycle parked in front of the Delta Airlines office in Buenos Aires.

Lean & Mean: A UPS motorcycle parked in front of the Delta Airlines office in Buenos Aires.

As the worlds’ largest package delivery company, Atlanta-based UPS has been around for over 100 years and has constantly adapted to the changing demands of corporate clients.

UPS is so synonymous today with global commerce that Thomas Friedman held Big Brown’s insourcing model up as one of the 10 flattening factors in his 2005 best seller, The World Is Flat. This is even more amazing when you consider the company has only been operating in international markets since 1985.

UPS is now celebrating twenty years of operations in Argentina and, according to La Nacion, the company that used to provide just courier services today offers Argentine customers a wide array of logistics and transportation services and the necessary tools to connect them to the global marketplace. Global players like UPS have injected much-needed transparency, efficiency and competition in the BA marketplace.

If Friedman were to write a sequel focused on this phenomenon, he might consider calling it, The World Is Less Fat. In an interview with Wired magazine, he offered this explanation: “They’re incredible flatteners. For UPS to work, they’ve got to create systems with customs offices around the world. They’ve got to design supply chain algorithms so when you take that box to the UPS Store, it gets from that store to its hub and then out. Everything they are doing is taking fat out of the system at every joint.” And in image-conscious Argentina, “more flat, less fat” will always be a winning formula.

For more information about doing business in Argentina, download the new issue of InvestBA Privada.

This is a fascinating video that sheds light on a truly global deal, Argentina’s role in the supply chain, and China’s insatiable appetite for everything. Noble Group CEO Richard Elman sits down with Bloomberg’s Bernie Lo to talk about China Investment Corporation’s (CIC) $850 million purchase of a 15% stake in Noble. Bloomberg notes that China has an appetite for everything Noble does business in from agriculture to foodstuffs to ores. Elman says the newly formed partnership seeks to secure the food chain on a global basis. “We think it’s going to be more important as the years go by. The world population is increasing by 3-5% every year, but the agricultural commodity development is not catching up with it, so I think we have a lot of opportunity there.” Noble’s port network in Argentina (Asset Map) is an integral piece in the pipeline strategy for South America, a region that Elman considers “the best source of low cost production in the world.”

 

Bariloche

Mendoza

Uruguay

© 2011 InvestBA.com