Sourcing suppliers in Mexico for manufacturing your products can be challenging, but it can be done successfully with the right approach. The manufacturing sector in Mexico is well developed, making it a popular destination for companies looking to outsource production. The country is also known for its low labor costs, skilled workforce, and proximity to the United States, making it a great location for companies looking to reduce costs and increase productivity.

1. Successfully Sourcing
Suppliers in Mexico
2024

2. 2
Overview
Sourcing suppliers in Mexico for manufacturing your products can be
challenging, but it can be done successfully with the right approach. Mexico
has a well-developed manufacturing sector and is a popular destination for
companies looking to outsource the production of their products. In addition,
the country offers numerous advantages for manufacturers, including low
labor costs, a skilled workforce, and proximity to the United States, making it
an attractive location for companies looking to reduce costs and increase
efficiency.

3. 3
Conduct Market Research Prior
to Sourcing Suppliers in Mexico
The first step in sourcing suppliers in Mexico is to research the market. This
includes identifying the specific products you need to manufacture your
product or products and understanding the specific requirements that are
needed for their production. Researching the Mexican market will also help
you 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 on the
topic.

4. 4
Conduct Market Research Prior
to Sourcing Suppliers in Mexico
Some of the suppliers in Mexico are in the following areas:
Electronics manufacturing services.
Box build.
Crimping.
Assembly and kitting.
Plastic injection molding.
Compression molding.
Machine shop (cutting, milling,
pressing, punch press, riveting,
turning, and welding).
Precision Machining.
Powder coating.
Liquid coating.
E-Coating.
CARC.
Heat treating

5. 5
Network With Individuals Who
Are Familiar With the Market
Networking with individuals that are familiar with the market is also
an important step in sourcing suppliers in Mexico. This includes
reaching out to industry associations, trade organizations,
government agencies, and contacts with a manufacturing presence
in Mexico to get information on potential suppliers and build
relationships with key industry players. In addition to these parties,
those sourcing suppliers in Mexico can speak to organizations with
country expertise.

6. 6
Network With Individuals Who
Are Familiar With the Market
These entities can include owners of industrial parks, shelter
companies, and local and regional economic development
associations. There are also yearly events for suppliers held in
cities such as Ciudad Juarez and in the country’s interior, where
contact can be made with firms exhibiting their capabilities.
One company that organizes events such as Mexico’s Supply
Chain Nearshoring Summit and Automotive and Aerospace
events is Mexico Now.
These organizations can provide valuable information on the
capabilities of different suppliers. They can also help you navigate
the complex regulations and procedures often associated with
sourcing suppliers in Mexico.

7. 7
Do A Site Visit
Once you have identified a few potential suppliers, you must
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.
A company that will succeed in Mexico sourcing should ensure it
fits into its plans and meets company needs before rushing or
accepting the first proposal or option. It is extremely important to
study each of the offers received from prospective suppliers.

8. 8
Do A Site Visit
Several factors must convince you before making the final
decision, not just the economic one. We know it's tempting to
go with the provider with the most economical proposal, but
you must try to read the offer fine print carefully and look at all
the other conditions. Those that do not do this often fail in the
end. Remember, what seems cheap can unexpectedly become
expensive without the appropriate amount of due diligence.

9. 9
The Importance of Negotiating
Contracts
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 addition, it's important to understand
that these negotiations can take time and that it's important to
be patient and persistent. It's also important to involve legal
representation in these negotiations, as contracts in Mexico
can sometimes be written in Spanish and can be difficult for
non-Spanish speakers to understand. However, most
companies, if not all, that are suppliers to the maquiladora
industry in Mexico will have contracts written in English.

10. 10
Keep Communication Open
Once you have selected a supplier, it's important to maintain
open and regular communication with them. This includes
discussing any issues that arise and working together to find
solutions. This communication is facilitated by the fact that
Mexico shares the same time zones with the United States and
is a short flight from cities in the US. It's also important to
monitor supplier performance and quality, to ensure that the
supplier meets your requirements.

11. 11
Evaluate Suppliers Issues
Throughout the process of sourcing suppliers in Mexico and
then choosing one to work with, companies should evaluate
their suppliers by considering the following issues:
• Reliability of information.
• Flexibility of the supplier.
• Quality of supplies used to make the product that is
sourced.
• Compliance with deadlines.
• Competitiveness of pricing.

12. 12
Consider Cultural Differences
It's important to be aware of cultural differences when sourcing
suppliers in Mexico. Mexico has a different business culture than
you may be used to, and it's important to be respectful of the
cultural norms of your Mexican partners. This includes
understanding the importance of personal relationships and being
patient and persistent when dealing with suppliers. Additionally,
effusive courtesy is generally seen as a critical communication
component in Mexico, and the family is the country's most
important institution. Therefore, before getting down to the brass
tacks of doing business, executives in Mexico will often seek to
establish a personal relationship.

13. 13
Conclusion
In conclusion, sourcing suppliers in Mexico for manufacturing your
products can be challenging, but with the right approach, it can be
done successfully. Researching the market, networking with industry
associations and government agencies, visiting potential suppliers,
and negotiating contracts are important. 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 your
Mexican partners. By following these steps, you can find reliable and
capable suppliers in Mexico to manufacture your products.

14. 14
NovaLink Nearshore Manufacturing
6665 Padre Island Highway Suite B
Brownsville, TX 78521
(956) 621-7362 contact@novalinkmx.com https://www.linkedin.com/company/novalink
www.novalinkmx.com