Southward Advisors

Mexican supply chains require additional efforts to be integrated when compared to those in other countries and regions. Most Mexican contract manufacturers are very good at producing one product category, commodity, or servicing one industry. Procurement of raw materials and components for new projects is often a challenge for many of these contract manufacturers, despite how “advanced” or competitive they may be in their manufacturing practices. When sourcing a product with a complex bill of material from Mexico, an experienced team of consultants is crucial to “connecting the dots” between raw material suppliers, tier 1 and tier 2 suppliers and OEMs. Many OEMs or those factories that perform final assembly will lack the capacity and know-how for integrating the supply chain. Additionally, many raw materials and components may still come from the USA, Canada, Asia and other regions, although we make all efforts to source as much of a BOM from Mexico as possible. Those components that come from other nations will require coordination with the client, final assembly supplier, Southward’s sourcing team and possible Asian sourcing agents and manufacturers reps. It will not be done by the Mexican factory alone. With the correct strategic sourcing plan and process, products with multiple components and/or complex BOM’s can be competitively and effectively sourced from Mexico.