Mexico Contract Manufacturing Partner (CMP) Sourcing:

Contract Manufacturing Partner

(CMP) Sourcing:

Want to outsource your production or move your outsourced production closer to home?

258 Consulting can find you the right partner to manufacture your product in Mexico. Our Contract Manufacturing Partner sourcing process matches your needs with the best partner for your future while reducing risk to your business.

A few key factors make Mexico competitive relative to China and to North America (USA and Canada). The first and most important competitive factor is Mexico’s labor costs – low cost, high quality. Labor costs, especially direct labor costs are on par with and in many cases are cheaper than in China. However, labor costs vary significantly from region to region in Mexico, as do the availability of specific skill-sets for different industries. For indirect labor and for higher skill-sets, Mexico’s educational system graduates excellent engineers and produces very good technical expertise. Prototyping is also a fast-growing industry.

In addition to labor, many raw materials and outsourced processes for different industries are also very competitive in Mexico.

Other factors which make Mexico the ideal destination to outsource your production include:

• Lead-times for shipments of final goods. From Mexico, lead-times can be less than a week compared to 6-8 weeks from China.
• Also, the USMCA (formally NAFTA) can be leveraged to save on import duties and tariffs.
• Production can be much closer to North American customers.
• Oversight and quality control of contracted production is much more efficient.
• The quality of Mexico’s manufactured good are world-class as is its infrastructure.

While Mexico is a global manufacturing powerhouse, its Contract Manufacturing sector is still largely unknown and differs considerably from China. The vast majority of potential contract manufacturing partners are not very public facing. They manage close relationships and are not do not typically have commercial teams who respond to RFQ’s and often there is a language barrier to such replies. While the production is largely destined for export, the business culture is quite local. Finding a suitable manufacturing partner is an “insider’s game” dependent on relationships as well as on local and sector knowledge. Getting into the market can take considerable effort, time and cost and likely would be challenging for an outsider. Working with a good and trusted partner can significantly improve your business’s competitiveness.

258 believes that the objective to outsource production is to be able to focus on your customers, to continue to build your business and do so with the peace of mind that your will receive your products when you need them. 258 Consulting was created with this critical understanding. We know the importance of supply and quality stability. Take advantage of our large and extensive network of manufacturing partners located throughout the main manufacturing hubs in Mexico. Let us do your heavy lifting and provide you with a reliable, cost efficient and timely solution to your manufacturing needs.

Where will my products be made? At 258 Consulting, we have extensive experience along Mexico’s border manufacturing regions as well as the main manufacturing hubs in Mexico. For example, we offer Contract Manufacturing Solutions in the following regions in Mexico:

Baja California (border with California): We offer solutions in Tijuana and Mexicali

Sonora (border with Arizona): Nogales, Hermosillo

Chihuahua: Ciudad Juarez and Chihuahua City

Nuevo Leon: Monterrey area

Coahuila: Torreon, Saltillo

“El Bajio”: Mexican States of Guanajuato, Aguascalientes, Queretaro, Jalisco, Michoacán and San Luis Potosi.

What about my Intellectual Property (IP)? Mexico offers peace of mind for your intellectual property (IP). The US and Mexico have strong economic and cultural bonds making it one of the world’s most successful cross border trade regions. Under the USMCA, legal and policy framework that protect and enforce IP rights have been strengthened among the three member countries. This also helps companies to bot only better access Mexico’s manufacturing capabilities, but also its growing prototyping industry. 258 Manufacturing can help you to design and test that your new product to help companies to stay competitive in the world market.

The 258 Consulting Experience helps you locate the right partner, taking into consideration your particular needs.

At 258 Consulting, we will want to understand:

• What your product or need is?
• What kind of volumes do you forecast in your first year and second?
• Do you have pictures, spec and measurements?
• Will you also need a local supply chain for this product?
• Where are your customers located?
• Do you have a price-point in mind?
• Are you moving production to Mexico or is this a start-up or new product?

As we define the variables important to you and your business, we will match your needs with the best Contract Manufacturing Solution(s).

258 Consulting considers every client individually. We listen to your needs; we will provide you clear information and feedback and we will tailor a solution to fit your needs and budget. An outline of our sourcing process includes:

• Complimentary initial phone consultation
• Immediate feedback to suggested next steps
• We will request that you complete a Supplier Requirement form.
• We suggest entering into a Mutual Non-Disclosure Agreement (NDA) prior to receiving any sensitive information.
• Understand your possible supply chain
• Volume of production
• Fight for the best output costs possible

EXAMPLES OF MILESTONES/DELIVERABLES

1. Verified lists of potential Contract Manufacturing Partner (CMP) candidates.
2. Travel and visit the CMP candidates and provide additional due diligence information.
3. Arrange and facilitate conference calls with the selected companies we do introductions and support Clients’ team.
4. Short list of CMP candidates, follow-up on quotes.
5. Receipt and the manufacturing of samples or prototypes.
6. Arrange and accompany clients to face to face meetings, represent in negotiations.
7. Supply chain support, sourcing local suppliers, continue to work towards cost reduction.

Let’s talk. Tell us what your needs are and benefit from our experience working for you.