In today’s fast-paced manufacturing environment, efficiency and reliability are paramount. One way manufacturers, especially those involved in nearshoring, can achieve this is through the turnkey operational model, contract logistics. But what exactly is contract logistics, and how can it benefit your business? Let's break it down.
Turnkey operations in Mexico offer manufacturers a fast, cost-effective way to establish a local footprint without investing in infrastructure. Through this model, third-party providers like Prodensa manage warehousing, compliance, and light manufacturing—allowing companies to focus on core activities while quickly entering the market.
These setups are especially beneficial under the IMMEX Program, which enables duty-free, 0% VAT imports for goods destined for export. Additional certifications like Authorized Economic Operator (AEO) offer extended import timelines and greater operational flexibility.
Ideal for companies needing final assembly, packaging, or distribution, turnkey operations streamline logistics, reduce time-to-market, and improve customer service—making them a smart solution for businesses nearshoring or expanding in North America.
Contract logistics refers to the outsourcing of resource management tasks to a third-party logistics (3PL) provider. These tasks can include anything from warehousing and transportation to inventory management and order fulfillment. Essentially, contract logistics providers take over the logistical operations, allowing manufacturers to focus on their core competencies.
Increased service levels by being close to customers through 3PL, having ability to have presence in Mexico without investing in facilities - simple manufacturing for export.
Vendor Management Inventory (VMI) is a supply chain management strategy where a vendor (supplier) takes responsibility for managing inventory levels at a customer's (manufacturer) facility. This strategy often benefits maquiladoras (or IMMEX facilities) where companies can import materials and components temporarily without paying import duties.
Key features include:
PRODENSA-WISDOM warehousing and logistics capabilities enable companies to extend their service delivery and order fulfillment for clients, both domestically and internationally. Through the IMMEX Program, companies can also perform final assemblies before distribution. This integration allows for streamlined operations tailored to the specific needs of export markets or local distribution.
Consider an automotive parts supplier based in Germany that needs to efficiently distribute parts to assembly plants across North America. Using Prodensa’s turnkey solution, the supplier can store parts in Mexico, perform simple final assemblies as needed, and/or packaging modifications, to quickly distribute them to automotive manufacturers in both the U.S. and Mexico. This setup minimizes logistics delays and reduces storage and transportation costs.
As with all turnkey models, it is not right for all business goals in Mexico.
Contract logistics offers manufacturers, especially those involved in nearshoring, a powerful tool to enhance operational efficiency and reduce costs. By outsourcing logistics tasks to a specialized provider, you can focus on what you do best—creating high-quality products.
If you’re ready to optimize your logistics operations and take your business to the next level, consider exploring contract logistics solutions. For personalized advice and solutions tailored to your operations, contact us today.
By understanding and implementing contract logistics, manufacturers can not only streamline their operations but also gain a competitive edge in the market. Ready to get started? Reach out to our team of experts and see how we can transform your logistics.