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Mexico supplier base development is prerequisite to the successful initiation of manufacturing operations

Mexico supplier base development is prerequisite to the successful initiation of manufacturing operations

In order to have the ability to function and to manufacture a competitive product in Mexico, it is of primary importance that the groundwork has been laid to provide for the successful formation of a Mexico supplier base.

Below is a list of twenty actions that should be taken to ensure success in such efforts that has been provided by the professionals at Mexico Consulting Associates:

Mexico Supplier Base Development Process List

1) Visit company’s manufacturing facility to view process(es), machinery and equipment and skill sets involved in production of relevant products/components;

2) Review the goals, objectives and accomplishments of previous related supplier
development projects;

3) Obtain relevant information on current suppliers including history of the relationship,
agents/brokers used, component parts manufactured by the suppliers as well as cost
history; review criteria that was set for selection of previous suppliers;

4) Review any existing supplier criteria being used for Mexico, making modifications as
required, and obtain available electronic drawings and samples for the parts in question;
the review will also include consideration for tooling, dies, molds and fixtures required
for production;

5) Obtain a sample of a supplier contract and copies of the NDAs provided to suppliers;

6) Determine the requirements for ISO, QS, TS, etc.;

7) Determine whether company has utilized, or desires to utilize, formal RFQs;

8) Develop a timetable for phase milestones and a spreadsheet format with metrics for
presentation of supplier information;

9) Develop quantity requirements for each part as well as potential dates for delivery of
samples and production volumes considering the need for tooling production;

10) Using the information obtained from company, develop a database of information on
potential suppliers obtained from MCA’s previous research, web sites, phone calls and e-
mails in cities within company’s geography of interest;

11) Present a dossier on company’s objectives to potential suppliers meeting the base
requirements and obtain NDAs and necessary information for presentation format chosen;
12) Rank the potential suppliers on their ability to meet the developed selection criteria;
determine which suppliers should be met;

13) Develop a meeting schedule for the potential suppliers and conduct the visits, viewing
available machinery and processes, and obtaining further information on manufacturing
capabilities and customers;

14) Re-rank the candidates, eliminating those that do not fully meet the criteria;

15) Either provide RFQs or request quotes from those remaining in consideration;

16) Work with candidates to obtain quotes and assist in the negotiating process with due
consideration to the requirements for tooling;

17) Provide a report ranking the final candidates with goal of providing a contract to the one meeting the ‘best-fit”;

18) Assist as requested in developing a supply agreement;

19) Assist as required with estimates for logistics costs including the need for a customhouse brokers on the U.S. side;

20) Assist in quality process thru first article testing and beyond if requested

The Tecma Group of Companies wishes you success in setting up a Mexico supplier base that serves the purpose of making your company a superior one. For information on setting up manufacturing  operations in Mexico contact our staff of professionals.

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This quarterly publication will be populated with content that is useful and relevant to readers that are contemplating Mexico investments, have operations already within the Republic, as well as to other individuals that have an interest in Mexico and its manufacturing sector.

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