Keys to Successful Sourcing in Mexico

Companies continue to establish supply chain networks & manufacturing in Mexico. However, there remain challenges to sourcing in Mexico. Mexican suppliers are overwhelmed by the large number of companies trying to diversify their supply chain. As a result, they are often not responding to requests for quotes or are providing extremely high quotes to see if a potential customer would accept it.

Mexico does not have the substantial number of multiple suppliers as Asian competitors but well-chosen suppliers and well-executed sourcing in Mexico can help achieve organizational objectives to improve a company’s competitiveness and value chain.

When looking to source suppliers in Mexico, we recommend and follow several steps to ensure finding reliable and capable partners. These steps include:

• The first thing is to develop a Long Term Strategy to source in Mexico, this includes the establishment of the most important attributes that you are looking for in a supplier. These attributes can be Corporate Profile, Production Process and Capabilities, Quality, Financial and Commercial.

• Market and Supplier Search: Identify potential suppliers and learn about their capabilities and capacity. This can be done by visiting trade shows, attending industry events, reading industry publications, and doing Internet-based research but the most important point is networking with individuals that are familiar with the market and suppliers, in other words, people that are the foot on the ground that directly understand the Business customs, language and can build relationships with key industry players.

• Possibility to visit their facilities to assess their capabilities and capacity. This will give you an opportunity to meet the supplier’s management and production teams and discuss your specific requirements. It’s also a good idea to bring a sample of your product to the facility so that the supplier can assess whether they have the necessary equipment and expertise to manufacture it.

• Once a supplier has been selected after an RFQ process, negotiating contracts is another important step in sourcing suppliers in Mexico. It’s essential to clearly understand the terms of the agreement, including pricing, delivery schedules, and quality standards.

In conclusion, sourcing suppliers in Mexico can be challenging, but with the right approach, it can be done successfully. It’s also essential to maintain open and regular communication with suppliers and to monitor supplier performance and quality. Finally, it’s essential to be aware of cultural differences and to be respectful of the cultural norms of Mexican suppliers. By following these steps, you can find reliable and capable suppliers in Mexico to manufacture your products.