Origen Tech’s automated SAP Global Trade Services are reducing compliance errors by 40% for Mexican manufacturers, with expansion plans for Brazil amid growing nearshoring demand.
As Mexico implements stricter customs regulations and U.S. companies accelerate nearshoring initiatives, Origen Tech reports 300% growth in demand for its SAP-based trade automation tools. The company’s solutions now process over $1B in cross-border transactions monthly for pharmaceutical and automotive clients.
Mexico’s regulatory shift drives automation demand
Origen Tech’s CEO Javier Mendoza told TechNews Latin America that July 2023’s customs reform created ‘perfect conditions’ for their SAP Global Trade Services solutions. ‘Before automation, our pharmaceutical clients faced 18% error rates in HS code classification – now it’s below 3%,’ Mendoza revealed during last week’s SAP Now Mexico conference.
EY’s 2023 Latin American Trade Technology Survey found 72% of Mexican manufacturers still use manual processes for customs documentation. ‘That’s like running a modern factory with typewriters,’ commented EY partner Claudia Rios in the report’s foreword.
Nearshoring acceleration creates new opportunities
The company’s $5M funding round, led by Latin Venture Partners, will support Brazilian market entry by Q1 2024. ‘Brazil’s complex tax system makes Mexico look simple,’ noted COO Ana Lucia Pereira, referencing the country’s 92 different tax regimes for imports.
Recent wins include a major automotive supplier relocating from China to Monterrey. ‘We reduced their customs clearance time from 14 days to 48 hours,’ shared implementation lead Carlos Gutierrez in a client case study published yesterday.
Partnership expands logistics capabilities
Origen Tech’s newly announced integration with LogiTech’s freight platform enables real-time duty calculations. ‘This eliminates the 72-hour blackout period our clients previously faced,’ explained CTO Marco Silva during yesterday’s product demo webinar.
The solution’s machine learning component now predicts customs delays with 89% accuracy, according to internal benchmarks shared with investors last month. Pharmaceutical client BioMex reported saving $2.7M in demurrage costs since implementation.
