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February 09, 2023
1 minutes to read  

Snapshot of the Nearshore Supply Chain

Manufacturing nearshore doesn't have to mean you give up sourcing components in Asia. On the contrary, you may be able to save a great deal of money by utilizing both Asian suppliers and nearshore factories. 

Though there are so many moving parts behind the scenes, let's walk through a high level example on what this could look like. 

Simplified Global Supply Chain Graphic-01-3

Say you've hired a manufacturing services partner with global facilities. Excellent! Now you are receiving all the benefits that come with U.S.-based customer support and, even better, an entire domestic engineering team in your arsenal. That's step one. Your company and your manufacturer are both based in the United States, so communications is a breeze and you have have the ability to easily meet in person when needed. After many conversations about your required capabilities, it has been decided the best place to produce your product is in their Mexico facility

Now it's time to source your components. Lucky for you, your manufacturing partner has a vast network of suppliers around the globe whose strong relationships they have cultivated throughout the years to ensure quality and dependability. Plus, their team works with these suppliers directly in their countries and time zones, including throughout Asia where many parts can be purchased inexpensively. Because of this, you don't need to worry about communication burdens often felt by doing business in the Eastern hemisphere. 

Once all components have been received in Mexico, the staff there will begin final production. After all testing and quality procedures are finalized, items can be made ready to be sent into the U.S. and into the hands of the customers. Because Mexico has ideal  proximity to the U.S., lead times are mere days rather than weeks. Remember what they say: time is money.

Are you curious if the capabilities we have in Mexico would meet your needs?

Contact-East-West

 

Filed Under: Supply Chain Management, nearshore manufacturing, Costa Rica