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Free zones in the export sector play a primary role, since they enjoy important tax and labor benefits in Panama.

Within a free zone, operators, goods industries, service industries and regular commercial use can carry out activities.

An operator is the legal entity authorized to direct, manage, supervise, promote and develop one or more Free Zones, as well as to qualify its users.

The Goods industry refers to the legal entity established exclusively in one or more Free Trade Zones, authorized to produce, transform or assemble goods through the processing of raw materials or semi-finished products.

In this sense, the service industry is the legal entity authorized to exclusively develop, in one or several Free Zones, among others, the following activities: logistics, transportation, handling, distribution, packaging, packaging, among several others.

Trade refers to the legal entity authorized to carry out marketing, commercialization, storage or conservation activities of goods in one or more Free Zones.

The main objectives of the free zones are to boost exports, generate employment in these regions and even encourage investment from other countries. As they are areas that have important tax advantages, they are an incentive for a logistics company to operate and, in this way, obtain a series of benefits.

Free zones have been very important for commercial and economic growth since ancient times.

The expansion of your company can be carried out in the largest Private Free Zone in Panama thanks to its varied benefits, flexibility, first-world infrastructure and highly qualified professional team to serve its clients. PANAPARK is the best strategic ally for companies, always aligned and integrated with the advantages that Panama offers as a multimodal bridge to facilitate the trade of countries since, thanks to its tax, customs, immigration, labor and financial advantages, it has positioned itself in the economy. worldwide through investment, always motivating technological, economic and social development.

It has been shown that customers are willing to pay for the differentiator of being in an environmentally friendly industrial park that also reduces its impact on the surrounding area, since this gives them the ability to compete with similar others in the market. same country or in the region, while allowing the evolution of the concept of sustainability.

Regarding the above, we can add that although Free Zones are defined as geographical areas delimited within a national territory where industrial activities of goods and services or commercial activities are carried out under special regulations on tax, customs and trade matters, externally, it is necessary to visualize much further and conceive of the Free Zones as intelligent cities or ‘Smart Cities’.

In Panama there is connectivity with the different markets in the region and the world thanks to its privileged location, it has a unique attraction for foreign investment.

There are a variety of industrial parks in the country located in strategic points, taking into account the ease of access to the main industrial and logistics infrastructures.

The Free Zones of the future must be efficient and technological, including topics such as: Artificial Intelligence, Internet of Things, Virtual Reality, Big Data, Industry 4.0, etc.

With all of the above, we can say that a Free Trade Zone must combine environmental actions (environmentally friendly, reduction of waste and resources), social (social responsibility) and economic actions (cost reduction through efficiency and that are economically viable), to achieve its positioning regionally and globally.

In this sense, Panapark is the largest Private Free Zone in Panama and has focused various efforts to include within its agenda making the necessary modifications to become more environmentally friendly, generating large open spaces so that it can operate The best way and being in the process of being a Free Zone 4.0, involves having all the necessary services that will boost your business, as well as focusing on the well-being of both the workers and the businesses that operate within this Free Zone.

In Panama there is connectivity with the different markets of the region and the world thanks to its privileged location, it has a unique attraction for foreign investment. There are a variety of industrial parks in the country located at strategic points, taking into account the ease of access to the main industrial and logistics infrastructures.

Within a free zone, operators, goods industries, service industries and regular commercial use can carry out activities.

Continuous improvement involves six different phases that seek to obtain small improvements in processes and products, with the aim of increasing quality and reducing incidents.

Evaluate the current situation, that is, recognize how the supply chain is in order to facilitate the detection of weak points in the processes and to be able to implement improvement strategies.

Free zones have as main objectives to boost exports, generate employment in those regions and even encourage investment from other countries. Being areas that have important tax advantages, they are an incentive for a logistics company to operate and, in this way, obtain a series of benefits.

A Free Trade Zone is a delimited geographical area of ​​the national territory, whose purpose is to promote and develop the process of industrialization of goods and the provision of services intended primarily for foreign markets. The Free Zones have tax, foreign trade, credit and exchange benefits.

One of the main advantages provided by the Free Zone Law are the tax incentives it provides to companies established in its customs territory. The main goal of the free zones is to increase the volume of exported products, the plants, factories and centers gathered within their area are focused on that objective.

In Panama there is connectivity with the different markets of the region and the world thanks to its privileged location, it has a unique attraction for foreign investment. There are a variety of industrial parks in the country located at strategic points, taking into account the ease of access to the main industrial and logistics infrastructures.

A Free Trade Zone must combine environmental (environmentally friendly, waste and resource reduction), social (social responsibility) and economic (cost reduction through efficiency and economically viable) actions to achieve its regional and global positioning.

Logistics services, mainly for preparation processes, order packaging and inventories, are increasing by companies seeking this external outsourcing to improve productivity and distribution service, streamlining the supply chain.

The support in logistics services that local production requires, Panama maintains growth levels in terms of cargo volumes that are mobilized to and through the national territory. In the case of ports, according to statistics from the Panama Maritime Authority, the Panamanian port system registered 8.6 million TEUS (maritime transport unit of measurement) in 2021, higher than 7.7 million in 2020 and 7.3 million in 2019.

The foregoing indicates that despite the SAR COV-2 pandemic, business continues to grow in and from Panama; administrative and governmental processes to take advantage of the strategic geographical position that Panama has in the global maritime and logistics sector.

Companies looking for an in-house logistics service, more than just needing staff, require monitoring of measurements with indicators of production and quality of service, as well as controls for the protection of people and process certifications.

It is known that greater digitization is required to improve processes and that operators must have specific training, so it is important to enhance cognitive skills such as memory, hand-eye coordination, spatial memory, among others, to improve productivity from the workers.

Each improvement that is made individually has an impact on the company in which it is developed, which in turn generates growth for the country.
In the field of logistics, picking and packing are related procedures, and are among the most demanded services in the sector. Picking refers to the preparation of orders, from the collection of the material and extraction of units or packaged sets, which can be units or by boxes. While the packing is related to the packaging, and consists of the preparation of the products that have been collected in the picking phase to be sent: packaging, packaging or container.

The port closures caused a bottleneck of supplies waiting for both containers to pack and ships to transport them. This has increased the cost of transporting goods. For example, where it used to cost $3,000 to ship a container from southern China to the west coast of the United States, now it can cost $20,000 or more. This will be reflected in the cost that we must pay as consumers.

It has been highlighted that 90% of the products in the world move by ship and that a large part of them come from China. He pointed out that the infections and restrictions imposed by the pandemic affected the workers in the port terminals, “breaking” the chain numerous times.

Focus areas that companies should think about to ensure they have the right solutions to address these challenges include:

• Implement risk mitigation strategies. The pandemic has exposed the weaknesses and risks of a global supply chain. When a furniture factory shuts down in Vietnam, or a shipment of toys gets stuck in a closed port, you need to have a “plan B” for your key products or components. By identifying alternative sources of supply and balancing offshore, quasi-offshore and onshore contract suppliers and manufacturers, you can significantly reduce the risk of disruption.

• Incorporate inventory optimization strategies throughout your enterprise network to establish inventory safeguards at strategic decoupling points and buffer against disruptive events.

• Improve visibility into real demand by taking into account leading indicators, such as sentiment analysis of what’s hot on social media. Early signals about actual sales, as well as how and where they are happening, are also needed.

The support in logistics services that local production requires, Panama maintains growth levels in terms of cargo volumes that are mobilized to and through the national territory. In the case of ports, according to statistics from the Panama Maritime Authority, the Panamanian port system registered 8.6 million TEUS (maritime transport unit of measurement) in 2021, higher than 7.7 million in 2020 and 7.3 million in 2019.

Companies looking for an in-house logistics service, more than just needing staff, require monitoring of measurements with indicators of production and quality of service, as well as controls to protect people and process certifications.

It is known that greater digitization is required to improve processes and that operators must have specific training, so it is important to enhance cognitive skills such as memory, hand-eye coordination, spatial memory, among others, to improve productivity from the workers.

Logistics services, mainly for the preparation processes, order packing and inventories, are increasing by companies seeking this external outsourcing to improve productivity and distribution service, streamlining the supply chain.

Over the past year, the Supply Chain (SCM) has been seen as on and off in terms of stability for the logistics and transportation sector, where SCM has been impacted by the effects of the pandemic considerably in almost all economic sectors and with long delays and detrimental effects on the supply of goods and services.

In this sense, we have seen a boom in terms of electronic commerce and this has occurred thanks to the great growth in the transport and logistics sector, particularly with the increase in groupage transport and last-mile deliveries.

The growth of electronic commerce that will continue over time, not only in 2022, already implies a strong demand for logistics facilities, making the real estate segment grow with the entry of new “players”.

Regarding the trends that we can see in SCM within companies in the transport and logistics sector, we will continue with a deep implementation of technology applied to logistics, with special emphasis on the management and transmission of intelligent data in real time, the implementation of many more sensors for the Internet of Things (IoT) and the future implementation of the 5G network.

Technological improvements applied to logistics, which will optimize all logistics processes, together with risk management to strengthen the supply chain in terms of safety and reliability, are the trends that the logistics and transport sector must set and focus.

During 2021 it has become a complicated scenario for the logistics and freight transport sector. Supply chain problems continue to be present throughout the world in 2022.

Regarding the tensions in the global supply chain, transport companies will face the challenge of guaranteeing service in a context of disruption: bottlenecks in maritime transport and shortages of raw materials cause delays to accumulate in the flows of goods and in production, forcing us to look for new supply points and alternative movements of goods.

Pressure on supply chains will keep freight prices high, adding to challenges such as the presence of ever-larger vessels.

After a couple of years of severe pressures on global supply chains, the port sector is poised to suffer from new problems that, moreover, could join a series of increasingly globalized problems, in which disruptions in one country will affect others practically more and more frequently.

The year of 2021 has been a very difficult year for the logistics and freight transport sector. Supply chain issues continue to be present around the world.

Persistent tensions in the global supply chain. Transport companies will face the challenge of guaranteeing service in a context of disruption: bottlenecks in maritime transport and shortages of raw materials cause delays in merchandise flows and production to accumulate, forcing to look for new supply points and alternative merchandise movements.

Automation within logistics will be one of the most powerful ways to optimize all processes to the maximum. To do this, companies will bet on the use of technological tools with which to control the execution of operations, improve efficiency in the last mile, guarantee traceability and, of course, carry out digital management of documentation.

The supply chain includes all planning and management of purchasing, sourcing, manufacturing, logistics, sales, and marketing, among others. In short, it unifies and controls the main processes and operations of a business. In order to optimize its operation, logistics management will play a key role, since it is responsible for the storage and transport of the merchandise, connecting the points of origin and customers of the products.

Continuous supply chain improvement can involve large-scale operations, but it is almost always small, incremental adjustments in individual departments.

Logistics management tools offer us better visibility and efficiency of the supply chain. By including a tool of this type (usually ERP or similar management systems) we will control all the processes, inventories, supplies and shipments of our chain.

Use good inventory management practices in order to ensure the availability of our products and meet demand. Some of these good practices go through the identification, coding and classification of the inventory and the synchronization of the stocks.

It is important to improve the coordination between suppliers and customers with good purchasing management planning. In this sense, it is important to incorporate metrics and objectives to identify good purchasing management in relation to the results and customer demand.

Good logistics management means better efficiency in the processes of our supply chain and the determinant for the company to be more competitive. Precisely from PanaPark we offer transport and logistics customs warehouse services that help to optimize these processes.

Logistics operators are companies dedicated to providing their own services to the supply chain of the contracting company. When you hire a logistics company to take over part of your operation, you will be able to focus your efforts on your specific area of business.

Among the different types of logistics operators we find the 1PL, 2PL, 3PL, 4PL and 5PL. Its name comes from English: First, Second, etc + Party Logistics, which respond to a logic of the division of activities. The numbers indicate the level of participation granted to suppliers in the logistics and distribution of your process. Here we will tell you more about each of these.

Implementing a supply chain continuous improvement program may seem like a daunting project, but the benefits far outweigh the effort. A few small changes can produce remarkable results.

Continuous improvement involves six different phases that seek to obtain small improvements in processes and products, with the aim of increasing quality and reducing incidents.

Evaluate the current situation, that is, recognize how the supply chain is in order to facilitate the detection of weak points in the processes and to be able to implement improvement strategies.

Identify the main problem. It should point out where the supply chain processes are and the ideal place where they should be. For example, a problem that may arise is that there is a lack of coordination in the summons system to collect loads in a logistics center when no organizational manager and verifier is in place, which leads to the driver not being able to receive the merchandise and getting lost. time and money. In this case, the identification of the problem is clear since you know what the problem is and you know the procedures that must be changed to reform the situation.

The most important part of the continuous improvement process, from a leadership standpoint, is empowering individuals to make decisions and improve inefficiencies for themselves. Creating a culture of continuous improvement within the organization requires commitment, but it is doable, and the results are worth it.

It all starts with COVID-19, as the pandemic has triggered a ripple effect throughout the global supply chain. The Delta variant has continued to cause plant closures in Asia.

Port closures have caused a supply bottleneck awaiting both containers to pack and ships to transport them. This has increased the cost of transporting goods. For example, where it used to cost $3,000 to ship a container from southern China to the west coast of the United States, now it can cost $20,000 or more. This will be reflected in the cost that we must pay as consumers.

It has been highlighted that 90% of the products in the world move by ship and that a large part of them come from China. He pointed out that the infections and restrictions imposed by the pandemic affected the workers in the port terminals, “breaking” the chain numerous times.

According to World Bank estimates, the global economy contracted by 3.59% during 2020 and as a consequence of the restrictions imposed to deal with covid-19. The IMF projected a rebound of 6% for 2021, in a context of slowing growth.

Focus areas that companies should think about to ensure they have the right solutions to address these challenges include:

• Implement risk mitigation strategies. The pandemic has exposed the weaknesses and risks of a global supply chain. When a furniture factory shuts down in Vietnam, or a shipment of toys gets stuck in a closed port, you need to have a “plan B” for your key products or components. By identifying alternative sources of supply and balancing offshore, quasi-offshore and onshore contract suppliers and manufacturers, you can significantly reduce the risk of disruption.
• Incorporate inventory optimization strategies throughout your enterprise network to establish inventory safeguards at strategic decoupling points and buffer against disruptive events.
• Improve visibility into real demand by taking into account leading indicators, such as sentiment analysis of what’s hot on social media. Early signals about actual sales, as well as how and where they are happening, are also needed.

In order to sustain the current business rhythm and guarantee the stability of the sector, it is necessary to respond to the challenges of the present and adapt to the demands that the future is already marking.

Currently, logistics agents around the world hope to solve as soon as possible the problems derived from the covid-19 pandemic that affect supply chains, such as the increase in transport rates, the shortage of containers and the congestion of ports, which should be highlighted among the most serious.