Expanding a company to new countries and growing global operations can be a monumental task for any team. While expansion can drive down costs and allow you to find new markets, the supply chain may face risks. A tried and true way to mitigate these risks is through partnerships and continuous collaboration. Even amid all the news about supply chain issues, companies continue to create global partnerships across borders. Not surprisingly, businesses go to where performance has been best even in the context of the pandemic.
Mexico is consistently one of the top destinations when it comes to supply chain partnerships due to its proximity to the United States. The USMCA has also incentivized the United States–based businesses to take advantage of manufacturing in Mexico. The country can be a cost-effective location due to its stable tax rate and lower labor rates.
But how do you find the right partner in what is increasingly a competitive market? How can you find a company when the intensity to leverage limited manufacturing and distribution resources is only going to grow?
Here is a brief overview of what the world’s best companies are looking for when it comes to global partnerships to maintain and improve their supply chains:
1. Having a clear plan is key
When it comes to global partnerships, companies are often clear and detailed on what they want even as they understand that today’s needs will likely expand with time and experience in the market. They seek today’s partner that can grow with them.
2. Focus on cost, quality, and time
Companies are focused on the tradeoffs between cost, quality, and time. They understand that it is a question of integrated value vs. isolated cost. A partner that understands and continuously looks for ways to develop integrated cost management can add tremendous value. Mexico can be an ideal destination since it would shorten the supply chain, facilitate close communication with plant management, and may even reduce risk.
3. Transformative relationships
The capability of developing and executing an Integrated plan that not only considers these tradeoffs but manages this transformative relationship as such, considering the organization and structure, process and technology, potential risks, and more. Supply chain management is an integral part of any expansion plan. Finding a partner that aligns with your organization and that can bring great insight into your process is key to a successful business relationship.
Global partnerships can be a fantastic tool for growth and transformation as long as you can find a company that aligns with your vision and maintains a cost-effective supply chain. At Nepanoa we can help you not only find the right partner but more importantly, develop and execute an integrated plan to help you succeed in Mexico.
Read more: How to find the right suppliers in Mexico