As trade with Mexico grows, demand for transborder trucking rises—as does the value of a secure international supply chain.
One tech startup is helping companies to enhance the security of their international supply chains.
“The way [companies] have been running these programs historically has been on paper,” Miguel Olivo, CEO and founder of Zerio, told FleetOwner. “Inspections and all that are just on sheets of paper and spreadsheets right now. One thing we’ve been focusing on is digitizing those workflows.”
Zerio provides a platform to ensure consistent security protocols and automate compliance with international standards.
Automate CTPAT compliance
What is CTPAT?
The Customs Trade Partnership Against Terrorism is a supply-chain security program led by U.S. Customs and Border Protection. Private companies can volunteer to join the program, working with CBP to protect their supply chains from bad actors.
The program has more than 11,400 certified partners, including importers, exporters, and carriers. CTPAT partners work with CBP to identify security gaps, implement specific security measures, and reinforce best practices.
CTPAT partners are then seen as ‘low risk’ by CBP and are less likely to be examined at U.S. ports of entry. Companies with multinational operations also often prefer carriers that have CTPAT certification.
“This partnership started with seven companies originally, including General Motors,” Olivo said. “The thought was ‘let’s work with businesses that have the largest supply chain, the biggest footprint globally, to help us implement security procedures and protocols outside of the U.S. at their facility.’
“As the products come out of the assembly lines and get into containers, they wanted to put security processes and metrics in place so that, when those containers arrived at the border, the U.S. government customs agents were more comfortable allowing those kinds of shipments to come through.”
Other governments worldwide have similar voluntary security initiatives. Mexico’s voluntary supply chain security program, for example, is Authorized Economic Operator, while Canada’s is Partners in Protection.
These programs aim to protect the flow of goods from foreign agents that want to move illegitimate goods, such as narcotics or human trafficking.
“Globally speaking, they’re all very similar in nature,” Olivo said.
Zerio offers a cloud-based compliance platform that acts as a liaison between companies and the U.S. Customs Trade Partnership Against Terrorism. The platform operates under a subscription model and currently supports U.S.-Mexico operations.
“What we’re working on specifically is managing compliance with those programs and, basically, the day-to-day activities that they need to be performing under those programs,” Olivo told FleetOwner. “We’ve automated all those tasks. We’ve got a load of over 150 automated security workflows that the companies are running day-to-day, ensuring that they’re in compliance with these security frameworks.”
Compliance activities can not only be automated but also shared between partners. Inspection forms, security profile questionnaires, audits, and other security activity can be shared between manufacturers and their partner carriers on the platform.
Nearshoring drives transborder trade
Transborder trade is becoming more critical for trucking as nearshoring feeds U.S.-Mexico trade.
Mexico’s economy is growing, and the country recently became the leading source of goods imported by the U.S.—great news for transborder fleet operations.
See also: Strained supply chains prompt industrial nearshoring trends
“There has always been a large manufacturing presence in Mexico, but there seems to be a much larger focus now. I think over the next few years, that’s going to be the case,” Olivo said. “I think there’s real opportunity for carriers. This is going to be a lot of growth ... and there are quite a few carriers that have pulled out of Mexico in the last few years.”
However, U.S.-Mexico trucking will continue to face scrutiny by U.S. Customs and Border Patrol. CBP still finds large volumes of drugs and weapons crossing the border. Continued scrutiny in the midst of growing trade increases the value of CTPAT certification.
“I think, generally speaking, one of the challenges is going to be security. Organized crime still has a strong foothold throughout the country, and so you have to put protections in place for businesses,” Olivo said.
What’s next?
While Zerio only focuses on U.S.-Mexico trade for now, its platform is already prepared to support other countries.
“We analyzed the European program, the Canadian, Mexican, and American programs, and we found the consistencies across them,” Olivo said. “The platform was built to basically activate a new framework. Depending on the country you're operating in, we can just turn on a new framework, integrate with the existing ones, and continue to run your operations. Turning on that framework is just a matter of making sure we have enough customers that are interested in that framework.”
About the Author
Jeremy Wolfe
Editor
Editor Jeremy Wolfe joined the FleetOwner team in February 2024. He graduated from the University of Wisconsin-Stevens Point with majors in English and Philosophy. He previously served as Editor for Endeavor Business Media's Water Group publications.