News, Insights and Best Practices for Manufacturing in Mexico

Shelter companies provide increased operational flexibility

08 Aug 2013

Category: Labor & Economics, Logistics Management, Manufacturing in Mexico

Offshoring the production process to Mexico can be difficult for businesses if they don't utilize shelter companies. From providing expert guidance regarding Mexican tax and labor laws to securing a home for the fabrication process in industrial parks, shelter companies understand every aspect of the offshoring process. With many manufacturers starting to focus on flexibility within their operational practices and assembly processes, there is an increasing need for businesses to invest in adaptable strategies. Shelter companies allow manufacturers to maintain flexibility regarding their supply chain and operations while also offering businesses unique opportunities regarding their location and building choices. 

Demand rising for supply chains and operations to be adaptive
According to MIT Sloan Management Review, it is becoming increasingly important for manufacturers to maintain supply chain flexibility. While many businesses look to reduce their production costs while still providing high-quality goods, fluctuating fuel prices are causing manufacturers to seek ways for their logistics to be adaptive. However, this can become difficult when the issue is centered in another country.

Sloan Management Review reported volatile fuel prices are not the only supply chain disruptions. Weather patterns can result in delayed delivery times, causing many manufacturers to quickly change their logistical strategies. 

When a company is offshoring their production process to another county, these challenges become more complicated to handle from a remote location. Even if the county is geographically close to the U.S. like Mexico is, businesses can have difficulties with communication down the supply chain if there aren't dedicated employees on the ground to handle the situation. According to Manufacturing Business Technology, technology is allowing manufacturers to improve their communication with employees in another country in real time. However, manufacturers still need to be flexible with their interactions during a crisis. 

Shelter companies not only understand the Mexican workforce but are also able to provide experience that can help businesses navigate changing conditions. Manufacturing Business Technology reported that success now depends on staying adaptable and streamlining business operations. The website suggested that companies need to collaborate with global partners to optimize the supply chain and quality of goods. 

Location, factory benefits of shelter company assistance 
Expanding to Mexico without the assistance of a shelter company offers businesses few benefits due to the large investment in finding the factory's location and establishing a logistical supply chain. Offshoring becomes more manageable when manufacturers use an experienced shelter company to assist them. 

Many businesses may think they will be unable to choose their preferred building size and location as well as feature options if they decide to employ a shelter company. However, shelter companies provide manufacturers with information regarding optimal plant locations in the country, such as in Guaymas and Empalme, Sonora, and Saltillo, Coahuila. Businesses are still able to have a say regarding the establishment of their production process in Mexico

The manufacturing industry is moving toward flexible logistical and operational strategies to better adapt the changing supply chain challenges while still reducing costs. With Mexico becoming the top offshoring destination for many manufacturers, using an experienced shelter company can offer a wealth of benefits. 

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