How to Source a Product Locally in Mexico with a World-Class Strategy

 

Sourcing from Mexico requires a world-class procurement strategy to ensure efficiency across every step of the procurement cycle. Whether you are looking for raw materials, finished goods, or services, the main objective is to secure the best match at the most competitive price while ensuring that suppliers in Mexico are reliable and meet your expectations both in the short and long term.

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International sourcing can be challenging, especially for companies new to the Mexican market. Many first-time experiences have been fraught with difficulties, including the risk of scams, or too expensive when it comes to visiting local fairs when coming from abroad. However, with the right strategies and tools, these risks can be mitigated, and the costs can reduce considerably as compared
to visiting the country for a first exploration, ensuring a smooth and successful sourcing process.

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The 7 Steps to Effective Sourcing from Mexico:

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• Profile The Category.

        Understand the specific category of products or services you need, defining key characteristics and requirements that are critical          to your business. 

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• Supply Market Analysis:

        Analyze the supply market in Mexico to identify potential suppliers, understanding their strengths, weaknesses, and market                  position. Another critical factor implies analyising the international trade challenges, including the tariff regulations in both                    countries, logistics costs, among other key factors.

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• Develop a Strategic Sourcing Plan:

         Create a plan that outlines how to approach sourcing from Mexico, taking into account factors like cost, quality, and lead time.

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• Select the Strategic Sourcing Process:

        Choose the appropriate sourcing process, whether it’s through direct procurement, tenders, or auctions, to find the best suppliers           in Mexico.

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• Negotiate with and Select Suppliers:

        Engage with potential suppliers in Mexico, negotiating terms that align with your business goals while ensuring compliance with            local regulations. Additional to that, it is important to understand the local business mindset and the communication process                where normally speaking English is not enough to bridge the gaps derived from different cultural and regional negotiation styles.

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• Implementation and Integration:

        Implement the sourcing plan, integrating the selected suppliers into your supply chain with clear communication and expectations.

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• Benchmarking:

       Continuously monitor and evaluate supplier performance, comparing it against industry standards and your own benchmarks to             ensure long-term success.

 

 

While these steps form the backbone of a solid sourcing strategy, additional factors can impact your success. Our 25 years of experience in matching companies with suppliers in over 22 industries in Mexico enable us to provide expert guidance tailored to your needs. Whether you're sourcing for the first time or looking to optimize your current process, we are here to support you every step of
the way.

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Interested in exploring Mexican Market as a potential supplier? Feel free to reach out to tell us about your project, our team will be glad to assist you at any time!

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