Skip to content
Close
LOGIN
SEARCH
CN
CN
Market-Entry-and-Advisory-1
Market Entry & Advisory

Navigate market challenges with the help of Prodensa's material experts.

EXPLORE
Site-Strategy-Implementation-in-Mexico
Implement Site Strategy

Identifying the optimal site and production network strategy in Mexico.

EXPLORE
Turnkey-Operations-Models-in-Mexico-1
Turnkey Operations Models

Leverage our 39+ years of experience and partner with us on your Mexico project.

EXPLORE
Quick Links
What is IMMEX?
Become a Supplier
Customer Needs Form
Clients Vacancies
Doing Business in Mexico
TheMexicJourney_left-1
Our 5-step methodology to launch or expand your operations in Mexico, and thrive in a booming market.
Start Your Journey
banner-case-study-supply-chain-3

CASE STUDY:

Identifying suppliers for nearshoring operations from Asia to Mexico
THE CLIENT

Identifying suppliers for nearshoring operations from Asia to Mexico
THE CHALLENGE
Supply Chain Nearshoring from Asia to Mexico.
OUR SOLUTION

Collaborating with the client, we identified key suppliers for the nearshoring of key commodity groups to move from Asia to Mexico.

Such analysis resulted in the client moving multiple commodities to Mexican suppliers for cost and having suppliers in the same timezone to support their operation in the US.

THE CHALLENGE

This California manufacturer of thermal insulation products needed to get a new production line up and running fast to meet a new contract deadline.

The Baja California region in Mexico gave them quick access by car and a sustainable workforce for their 90+ person cut & sew operation.

CHALLENGES

  • Relatively low budget for design, implementation and marketing
  • 8-week time constraint for the whole project
  • Website must match existing digital corporate identity
  • Website should be deeply integrated into the HubSpot solution
  • Design & development from scratch is not feasible
  • Customer would like to be able to edit content and structure
  • Website must be implemented in three languages
  • Webdesign must match modern design standards
THE INSHORE MODEL

OUR SOLUTION

Coming off an unfavorable experience with a contract manufacturer, our client prioritized the protection of their intellectual property. After analyzing different operational models to start up their project with Prodensa, our client chose the Inshoring Model. This provided them with a streamlined start up process with the application of proven best practices earned by Prodensa over nearly 40 years.

Inshoring provided our client a domestic manufacturing solution with risk-free access to the cost-benefits that Mexico provided for their manufacturing operation. 

They scaled up fast, and reached the first phase of planned capacity within 6 months of beneficial building occupancy.

The Inshoring Model provided our client protection to their cash flow during the crucial ramp-up phase while allowing them to meet new contractual demands in the most agile way.

bg-woman-phone-1221911038
"When you head on out to the Moon, in very short order, and you get a chance to look back at the Earth, that horizon slowly curves around in upon himself, and all of sudden you are looking at something that is very strange, but yet is very, very familiar, because you are beginning to see the Earth evolve."
Gene CernanAstronaut, Apollo 17
Nearshoring

Identifying Suppliers in Mexico

Client Situation: A U.S.-based manufacturer, heavily reliant on Asian suppliers, faced significant supply chain disruptions due to global market volatility and pandemic-related challenges. The company sought to diversify its supply base and capitalize on the United States-Mexico-Canada Agreement (USMCA) to meet "Made in Mexico" certification requirements. 

 

However, before relocating its manufacturing operations to Mexico, the client wanted a comprehensive assessment of the Mexican supply base to determine which key commodities could be nearshored effectively.

Our Approach

1
Supply Base AssessmentOur team collaborated closely with the client to conduct a thorough supply base analysis. The objective was to identify local suppliers in Mexico for critical commodities and raw materials that could replace the company’s Asian vendors. This was essential not only to ensure cost efficiency but also to maintain the consistency and quality of the products while reducing supply chain risks.
2
Commodity Focus

Together with the client, we prioritized several commodity groups that were vital to their production, including electronic components, machined parts, packaging materials, plastics and resins. We worked to identify and vet Mexican suppliers who could fulfill these requirements while aligning with USMCA regulations to take full advantage of trade benefits.

3
Supplier Nearshoring StrategyWe developed a nearshoring strategy that focused on moving key commodities from Asia to Mexico. This included mapping out potential suppliers located in Mexico’s industrial regions and evaluating their capacity, quality, and pricing structures. The shift allowed for more agile production and better alignment with U.S. time zones, which helped improve communication and lead times.
Success Case

RESULTS

Cost Savings The client successfully moved multiple commodities to Mexican suppliers at competitive costs, significantly reducing their reliance on long-haul shipments from Asia.
Opperational Efficiency By having suppliers located within the same time zone as their U.S. operations, the client was able to streamline communications, making it easier to resolve issues and accelerate decision-making processes.
Improved Resilience The diversification of the supply base strengthened the client’s overall supply chain resilience, reducing vulnerability to global disruptions while leveraging Mexico’s proximity to the U.S. and favorable trade agreements under the USMCA.

 

By conducting a comprehensive supply base assessment and nearshoring key commodities to Mexico, the client improved both their cost structure and operational resilience. This shift positioned the company to meet growing market demands while optimizing supply chain efficiency.

 

Are you ready to diversify your supply chain and explore manufacturing in Mexico?

 

 

 

CONTACT US

To learn how we can help you identify the best suppliers and take advantage of Mexico's strategic advantages.
CONTACT US