CASE STUDY
Metalworking Project for US-Based Manufacturer Expanding to Mexico
PROJECT
Support a US-based company find the right suppliers for expanding to Mexico
WHAT WE DID
Developed supplier network, managed audits, ensured production quality
CLIENT
A US-based manufacturer outgrowing their current operation in Tijuana
TIMELINE
Began July 2023, ongoing.
The Challenge
The U.S. company had outgrown its production capacity in Tijuana, prompting the need for a new facility in Nuevo León, Mexico. In addition, they needed to develop a robust supplier network to source components and parts.
The company lacked the internal resources to efficiently identify, develop, and manage the necessary suppliers, which was a critical challenge for their expansion. The sought support from PRODENSA's manufacturing experts.
The Solution
PRODENSA was brought in to assist the company in developing its supplier network. Leveraging an extensive network of allied suppliers, Prodensa took on the task of analyzing the client's requirements, classifying the parts needed, and assessing the capabilities of potential suppliers.
Key Steps in the Project
Client Needs Assessment
PRODENSA analyzed the client's specific needs, including materials and production capacities.
Supplier Identification
Using its existing network, PRODENSA identified around 18 suppliers across different industries who could meet the client's demands.
Supplier Audits
To ensure quality, PRODENSA conducted audits on behalf of the client to validate the suppliers' capabilities.
Product Sample Production
PRODENSA managed the full PPAP deployment, ensuring they met the client's quality standards before moving on to full-scale production.
Administrative Oversight
PRODENSA handled the administrative processes and ensured a smooth transition to the full manufacturing phase, leading to the creation of purchase orders (POs) from the client.
The Results
Since starting in July 2023, the project continues to operate successfully. The client has been able to meet their production timeline, and product quality has improved. Working with PRODENSA has resulted in:
- Improved delivery times
- Enhanced product quality
- Cost reductions, leading to more competitive pricing
- Streamlined supplier management and development
The Conclusion
This case highlights how partnering with PRODENSA allowed the client to quickly overcome the challenge of supplier development and expand production capacity in Mexico. By outsourcing supplier identification, audit processes, and part production, the client achieved significant improvements in operational efficiency and product delivery, enabling them to meet customer demands and remain competitive in their market.
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