If you are unaware of how sourcing from Mexico can be beneficial for your company, then take a look at these 6 benefits of sourcing from Mexico.
In 2022, the situation all around the globe was finally under control after the covid pandemic. It won’t be wrong to say that the year 2022 was the year for recovering from the damage that the spread of the coronavirus caused.
Now that businesses and companies all around the globe have found their pace back, the year 2023 is going to be filled with competition. Business strategists will look into more optimal techniques for maximizing profits. One of these options is to optimize the logistic chain and start sourcing from Mexico.
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Short Supply Chains
A great advantage of sourcing from Mexico for a business in the US or Canada is that the supply chains in Mexico are shorter than in other manufacturing countries.
Short supply chains directly translate to lower transportation costs along with quick turnaround times. Product sourcing in Mexico has short supply chains due to the sort of geographic proximity Mexico offers to their NAFTA fellow countries.
These short supply chains significantly contribute to boosting the local economy along with promising low costs for the buying companies.
Access to Customers
Mexico has a great number of free trade agreements with countries all over the world. It is because of these free trade agreements that Mexico is one of the most preferred locations for investors to set up factories and industries.
This has ultimately led to Mexico being a center area for manufacturing and enabling major companies and a customer attraction as Mexico has a promising local market for over 120 million consumers. That’s quite a big number, right?
Access to labor and workers
The labor force and the sourcing suppliers in Mexico are greatly diverse, which promises businesses to be equipped with a globally varied workforce that could easily handle shortages in regions that lack labor and workforce.
Mexico’s manufacturing labor force skews younger, highly skilled, and more desirous of a career in the field. Mexico has a strong manufacturing proficiency and the perfect environment for foreign companies.
Ease of communication
It is no secret how communication is such a key concept in a business. Communication in a business needs to be very effective to ensure it always leads to better outputs and not loopholes in the system.
Since we already talked about how Mexico has a whole “business environment,” it is a given that working professionals, investors, sourcing agents in Mexico, and administration staff members are great at communicating.
With shorter lead times, importers can respond faster to peak demand and do not require the same high levels of on-hand inventories. Inventory management techniques of a business are highly responsible for deciding where a business ranks in the market.
Familiarity with the US market requirements
Maybe the most important benefit of sourcing from Mexico.
Mexico has been the center for flourishing businesses in the US for a very long time. Year after year, companies from all over the globe have been moving their factories to Mexico, but the US has been there forever.
It is clear that Mexico’s administrative staff have great knowledge about “how US markets work” and their requirements.
Even the customs at the US and Mexico border share inspection points to expedite merchandise movement.
For every worldwide company, the US is a major market, and knowledge of the US legal requirements could be the best tool to make a business grow in the US market faster.
Intellectual Property in Mexico
Mexico has a long history of respecting patents and other intellectual property, which is a super important requirement for businesses.
The IMPI is the government agency in Mexico that is always making sure that the intellectual property of companies is protected and that investors can feel safe and secure about sourcing and manufacturing in Mexico.
Conclusion | Benefits of Sourcing from Mexico
In this article, we discussed the benefits of sourcing from Mexico and why businesses prefer to source from Mexico. The geographic proximity and the business environment in Mexico are responsible for the advantageous opportunities that provide enterprises with the know-how to maximize profits.