Saving $200K: A Cabinet Maker’s Shift to Mexican Suppliers

A firm in the Midwest was manufacturing custom kitchen cabinets in China and looked to Mexico as an alternative due to 301 tariffs. Southward located several possible suppliers. After several rounds of bidding and factory visits, our supplier in the state of Guanajuato was able to compete with the client’s Chinese suppliers. The client was immediately able to save over $200,000 USD in tariffs and developed a nimbler supply chain at the same time. Being a very small firm, they were able to reduce order quantity from Mexico as opposed to keeping higher stock from Asia due to longer lead times.