Supply Chain Values

To understand the importance of a good supply chain to your manufacturing operations, please review the following graphic.  

Supply Chain Values

 

Why U.S. Companies Are Moving Their Supply Chains From China to Mexico

NovaLink is committed to the philosophy that transitioning manufacturing to Mexico, with Mexico Supply Chain Services, should be an easy, rapid and cost-effective process. Supply Chain Brain listed reasons why companies are moving their supply chains from China to Mexico.

Ground Transport

Goods can be imported from Mexico via ground transport in a matter of days or even hours. This is never an option for goods manufactured in China, from which everything must come by ocean or air. The former is very time consuming (it can often take weeks), and the latter is very expensive.

“Trusted Partner” Status for Customs

The U.S. offers two programs that help facilitate faster and easier Customs processing for U.S.-Mexico trade: FAST and C-TPAT. Initiated after 9/11, FAST is a trusted traveler/trusted shipper program that allows expedited processing for commercial carriers who have completed background checks and fulfill certain eligibility requirements (much like TSA Precheck for air travelers). FAST certification is for drivers; C-TPAT is a broader program that shippers must apply for. Once a company is certified for C-TPAT, its drivers can then apply for FAST. There are no such programs for U.S.-China trade.

A Transparent Landscape

There are also new modern options for transport that make Mexico attractive. Companies can coordinate door-to-door transportation between the U.S. and Mexico, including procurement of trucks on both sides of the border, customs clearance, insurance, financing, and reporting. This allows manufacturers to focus on their core competency, rather than logistics, and can also reduce the need for big in-house shipping and logistics teams.

Smaller Language Barrier

Spanish is the second-most common language spoken in the U.S., making it relatively easy to communicate with partners in Mexico (and find bilingual staff and vendors).

Time-zone Parity

Mexico operates on the same time zones found in the U.S. — Eastern, Central, Mountain and Pacific.

 

 

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. NovaLink would make the perfect secondary manufacturing partner source for many company operations.  

 

Do you need a nearshore manufacturing partner or solution for your business?  Contact NovaLink today: 956-621-7362 or visit our website: www.novalinkmx.com

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