News, Insights and Best Practices for Manufacturing in Mexico

Offshore to Mexico to reduce supply chain waste

24 Dec 2013

Category: Logistics Management, Manufacturing in Mexico

U.S. and Canadian manufacturers continually look to trim waste from their supply chains in order to keep profit margins high. According to an article in Supply Chain Management Review by Matthew Myers, head of the department of marketing and logistics at the University of Tennessee-Knoxville, leaned or optimized supply chains are often key factors in manufacturers maintaining their bottom lines.

Yet companies can't do it alone. Companies can only achieve a strong supply chain in a competitive global marketplace if they collaborate with the right suppliers and understand the end of the supply chain is just as important as the beginning or middle. For companies that manufacture in Mexico, short logistics already offer ongoing cost savings, but partnering with a shelter company can help businesses ensure their entire supply chains are optimized from production to sales.

Getting the most out of supply chains
Being able to see the entire supply chain is important in today's manufacturing age. In fact, 9 out of 10 companies aren't able to cause supply chain improvements, according to Forbes. Many manufacturers are continually having the same conversations about their logistical chains, causing few to make true progress. For businesses to move forward and remain competitive, they need to rethink their supply chains and how they view the entire production process.

In an article for, Michael Schmitt, chief marketing officer for E2open, manufacturers need to have a collaborative network of suppliers and supply chain professionals to get their products successfully to market. When companies expand their production processes to another country, they need to be able to make decisions quickly and easily. Mexico is the perfect destination for North American businesses to take advantage of offshoring's cost savings while keeping supply chains flexible and transparent. According to Schmitt, the longer the distance between the production process and end markets, the harder it is for businesses to successfully partner with suppliers and see the entire supply chain. In fact, it becomes more difficult for companies to adapt their logistical processes with consumer demand the farther the fabrication and assembly process is from North America.

North American companies need to stay competitive, but to do this businesses must be able to look toward the future of their production processes and supply chains. Mexico's close proximity to the U.S. and Canada presents manufacturers with the opportunity to prevent waste from piling up in supply chains.


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