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

  • 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

 

Today, our client successfully operates a facility of 150 people in Monterrey, Mexico, and has been able to meet the growing demand for its products in the US.  Nepanoa remains involved as a strategic advisor to help grow our client’s business in North America.

 

How can Nepanoa help you? Reach out, we’re here to help.

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