Supplier Relationships, Key to Effective Nearshoring
According to the World Economic Forum, “Many global manufacturing OEMs have been struggling to find alternative solutions, like shifting orders to secondary suppliers to make up the missed deliveries”, the U.S. in particular sees Mexico as the perfect location for opening more and more production facilities with shorter delivery routes.
In the pursue of finding good partners, a strong supplier relationship can be a massive help and support for any business. It can make procurement easier and offer value for a company in the form of expert advice and insights.
In recent Sourcing Projects, we have been informed by suppliers that they had a huge increase in the RFQ´s from customers and they need to evaluate what are the first RFQ´s they are quoting, but always they are quoting first with the ones that they have a strong relationship.
Especially in Mexico and Latin countries, good relationships are key and play a larger role to keep at the top of the list in all the RFQ´s that suppliers are receiving from all over the world but mainly from US manufacturers.
The way of negotiating in Mexico has become more professional over time and those who are part of the business world are increasingly prepared people who seek benefits for their companies and the consolidation of long-term business relationships. However, do not neglect friendship, honesty, trust and above all patience.
Building effective partnerships and collaborations is a skill that can further accelerate improved performance and sustained growth in the industry. Especially in a time when there is too much competition. When building a long-lasting supplier relationship, compatibility, trust, transparency, mutual communication and reliability will be foundational.
I personally believe, in Nearshoring and new sourcing opportunities that Supplier Relationships become one of the most important points of success and are the key to have Collaborative Negotiations that will deliver quotations in an orderly, formal, trusted and faster way, at the end, True Partnerships…..