Strategic Sourcing in Mexico and Other Near Shore Countries
For years, U.S. companies have sought the low-cost option of outsourcing to nations overseas. Now, nearshoring options have not only become comparable to the cost of labor overseas, but the operational efficiencies have begun to outweigh many of the benefits once perceived by outsourcing to China or Taiwan.
Source One can help businesses looking to gain a competitive advantage by helping source materials and suppliers, or helping migrate entire manufacturing processes to Mexico and other Latin American countries.
Source One can identify suppliers in Mexico and Latin American and assess capabilities for increased business expansion. In addition, Source One can work directly with potential suppliers to help companies in the U.S. marketplace expand their supply chain reach. Manufacturers who have utilized Source One’s nearshoring services have shown improvement in areas such as:
- More rapid inventory turnover due to shorter supply chains and nearby facilities
- Less disruptions to operations from distance or multiple parties’ involvement presenting delays
- Communication and transport leverage conducting business in the same time zone with a compatible culture
- Enhanced quality control from strong Mexican work ethic and easily conducted assessments with neighboring areas, sparing time and expenses for manufacturing better materials
- Legal protection through trade agreements covering countries in multiple continents, allowing access to new markets and commercial traction with tremendous growth potential
- Intellectual property securities in Mexico that stand apart from areas overseas where this is a large weakness and threat to business
Although the attention on near shoring has recently been focused on operational strengths, the cost efficiencies are still a remarkable portion of the relationship. With lower transportation costs from shorter shipping transit, U.S. companies have realized significant impact to their bottom line. Mexico and near-short countries also typically have low cost labor with moderately high degrees of English literacy.
Even with these benefits, it still remains a challenge to locate the right Latin American partner who fits the unique needs and challenges of the U.S. business. This is where Source One comes in.
Source One has been working with their professional colleagues in the region to identify potential suppliers and to assess capabilities for increased business expansion. In addition, Source One has been working directly with potential suppliers to assist them in their efforts to reach out effectively to the U.S. marketplace.
If you are looking to improve your manufacturing, nearshoring may be the way to go. Source One has the resources, experience, and skills to navigate cultural and technical barriers in order to help you improve your operations.
Contact us today to learn more about how we can help your company begin a nearshoring initiative.
Low Cost Country Sourcing
With a partner network extending wide beyond the US, Source One is able to take advantage of relationships with low cost countries that present low cost, high value options in sourcing.
Through tapping into our chain of low cost country suppliers, clients are provided a smooth path around complicated aspects of foreign sourcing such as taxes, varying dialects, and legal constraints. Let Source One take the hassle out of low cost country strategic sourcing for your organization.
Learn more about Low Cost Country Sourcing
Nearshoring Presentation and Speaking Event Materials Available Upon Request
Source One has taken advantage of many opportunities to speak internationally about our nearshoring subject matter expertise. We are happy to become involved in speaking events to facilitate discussions and drive diversified conversation surrounding low cost country sourcing.
If you are interested in previewing our presentation materials or speaker biographies, please contact our public relations department.
Contact Public Relations
Universidad La Salle Presentation
Vice President of Operations, William Dorn, and Liason to Latin American Markets, Diego De La Garza, were pleased to speak at the University of La Salle Business School in Mexico City. They outlined the unique circumstances Mexico holds in facilitating international business and the challenges presented by American buyers interested in Mexican sourcing.
Request Event Footage: “Strategic Sourcing Mexico, Challenges and Opportunities”
CONAMA: 2nd National Congress Manzanillo
Source One CEO, Steven Belli, and Vice President of Operations, William Dorn, made history as the first American business professionals invited to address the 2nd National Congress Manzanillo (CONAMA). While speaking about issues relating to international commercial relationships and procurement, they were able to garner the interest of Latin American government, business and educational leaders.