If your company is considering manufacturing in Mexico, it is always a sound practice to think through the entire process of manufacturing your product before you start. Manufacturing is complex, and without taking stock of the tasks involved, you might be setting yourself up for failure before you even produce anything.
To aid in becoming successful, NovaLink has provided you with 7 mistakes to avoid before you begin manufacturing your product.
- You haven’t thought through the logistics
Don’t be too anxious to jump right in and begin producing a product; ask the important logistical questions first: How complex is this product to make? Has an engineer had the opportunity to look over this product first to understand what is involved in production? How many of these products will you be able to produce with the cost and overhead involved? Knowing these answers beforehand are crucial to the success of your product.
- You don’t understand the manufacturing process or industry
So you can be a part of the success of the program, it is preferential that you have an understanding of your own manufacturing.This is beneficial because the client involvement in the manufacturing process set up and approval will be a crucial step in getting your product launched. If there are problems or changes you would like to make, your knowledge of your manufacturing will allow you to do this without delaying or sabotaging your process.
- You are trying to manufacturing on your own, without a partner
Manufacturing without a partner like NovaLink is taking the much harder road in your product’s success. This is especially true if you are manufacturing for the very first time or you have decided to use a nearhore manufacturing destination like Mexico. Nearshore Manufacturing Partners like NovaLink have over 30 years in experience in manufacturing as well as a solid process for getting your project started rapidly and correctly. Leveraging this experience will aid you in overcoming the problems and processes of which you have no experience.
- You have no administrative support
Every new operation requires administrative support: HR, Accounting and Information Technology as well supply chain and logistics (if you are considering manufacturing in Mexico). Without proper support, you will not have the time to focus on the success of your manufacturing project. Again, a nearshore manufacturing partner will aid you greatly in this. NovaLink will staff an operation according to your needs. For projects with a design component or those that require greater technical expertise, we can recruit additional engineering talent to help oversee the nearshore manufacturing services operation.
- Committing to an unrealistic overhead structure
If you have problems with gaining traction for your manufacturing, you may be committing to a structure for your manufacturing that you cannot fulfill. It is better (again, with a partner) to work with an infrastructure that allow you to grow into your needs: As your manufacturing project succeeds and grows, the manufacturing infrastructure will grow with you.
- You are not managing your supply chain correctly
Getting your product to market quickly and efficiently, and most importantly, cost effectively, are vital to the success of your manufacturing project. Managing your supply chain is often at the very core of this. Having a good understanding of the following will save your operation money in the long run:
- Sourcing and Procurement
- Inventory/Warehouse Management
- Finished Product Distribution
- Customs Brokerage (if you are using a nearshore location)
- You’re manufacturing in China
When faced with the choice of Manufacturing in Mexico vs China, the most popular option may not be the most cost effective. NovaLink believes that for the best in cost, quality, productivity and delivery, manufacturing in Mexico is the obvious, and best, choice. Since July of this year, the United States has imposed a 25 percent border tax on goods made from factories in China when they’re imported into the US. The goal of this tax, and the other China tariffs, is to make Chinese products more expensive for American consumers and businesses to buy.
With the new trade agreements between Mexico, Canada and the United States now in place, manufacturing goods and services between these nations is now easier and more cost effective than ever:
- There are no tariffs for products made in Mexico and imported into the United States that meet NAFTA rules of origin requirements.
- Lower shipping time for goods to get into the United States
- Lower average cost of shipping
- Lower number of days to start manufacturing operations
- Cost-effective ad more productive labor pool
Supported by over 30 years of experience, NovaLink has provided shelter or contract manufacturing services to a variety of industries. The management team has developed the skill and talent required to avoid the 7 mistakes commonly made in new manufacturing projects. Whether it is a product that requires precision and high tolerance, or a product that has been commoditized, NovaLink operates at an advantage.