Establishing Operations in Mexico

Our client is a US-based plastics manufacturer with two plants in the US and over 300 employees. To meet the increased demand of one of their main partners, our client decided to open a plant in Monterrey, Mexico. Nepanoa has been selected as its partner to manage this project and successfully establish a 150 people operation in Mexico in under 12 months.

Client Challenges

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  • Constant changes in the regulatory environment 

  • Lack of knowledge of the cultural intricacies of doing business in Mexico: negotiations, hiring, relationships

  • Increased demand in current US operations, reducing attention of the Mexico expansion

  • Absence of local business network

  • Scarcity of qualified personnel to carry out the project

  • COVID-19 related delays in government and partner response times

How Nepanoa Added Value

The Nepanoa team guided the client through the North Star, Execution Strategy, Set-up , Execute, and Support & Training of our Transformation Lifecycle, leading the efforts to design and execute the appropriate strategy to establish operations in Monterrey under the ever-changing COVID-19 circumstances. 

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North Star: Defined how the Monterrey operation would fit into their US operation to meet the new performance goals: tax, import/export logistics, local partners, employees, processes, location, technology, and budget.

Execution Strategy: Developed a winning strategy for the project’s milestones, understanding the long-term effects of each decision taken throughout the effort.

Set-Up: Established the Project Management Office and obtained agreement from stakeholders and partners on a comprehensive schedule of activities, milestones, roles and responsibilities, governance, and issue resolution workflow to ensure alignment across the organization and readiness to accomplish the objectives of the project.

Execute: Drove the project’s efforts to completion, coordinating all workstreams, managing issues, and mitigating risks: legal, real estate, government, certifications (VAT, IMMEX, AEO), finance, HR, engineering, and production.

Support & Training: Provided ad-hoc ongoing support throughout the first quarter of operations to ensure the facility was up and running smoothly and issues were resolved promptly.

Results

 

Nepanoa not only aided its client in making the right decisions to accomplish their Mexico expansion but introduced them to large potential customers to enable their success in the country.  Today, our client successfully operates in Mexico and continues to grow its international footprint.  Nepanoa remains a strategic partner in other transformation initiatives.

 

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