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.