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Taking insecurity out of the supply chain with shelter services

Taking insecurity out of the supply chain with shelter services
11 May 2016

Many companies turn to nearshoring when they fear losing control of their business to distance but want to take advantage of the labor, resources and trade conditions foreign partners can provide. Even building facilities as close as Mexico, however, still creates a sense of separation some companies are wary to address.

The Financial Times collected information from SCM World research that found U.S. companies favor Mexico manufacturing over traditional countries like China in growing numbers. Many businesses want to profit from Mexico's favorable trade agreements and proximity to consumer markets, but some organizations don't completely trust the territory. More U.S. business leaders are worried about the security of the country and skeptical it possess enough skilled labor.

While it is always wise to be cautious when contemplating major moves or other business adjustments, companies have to avoid making decisions based on inaccurate data. A Mexican shelter service can create an accurate image of resource availability and potential benefits while preventing nearshoring obstacles.

Many businesses are eager to begin manufacturing in Mexico rather than in China.Many businesses are eager to profit from Mexico's favorable trade agreements and proximity to consumer markets.

Assumptions don't match reality
There are many stereotypes about Mexico that may no longer apply or are outright untrue. Many U.S. companies fear being associated with negative public perceptions of the region and may fall victim to bias themselves. Fear shouldn't prevent success, and companies need partners who can cut through assumptions and present accurate data.

First of all, the SCM world report discovered U.S. companies fear for Mexican crime rates and 42 percent of respondents don't expect this problem to improve anytime soon. The truth, however, is that it already has. Insight Crime shared Mexican government statistics that showed almost all violent crimes in the territory decreased between 2010 and 2015.

U.S. businesses shouldn't feel too bad as Mexican residents also held onto old fears and reported crime rates remain the same, even when reports of violent incidents continue to fall. When it comes to safety, people are quick to assume the worse, and media might exaggerate to attract viewers.

Similarly, while many critics may see foreign facilities as sweatshops making simple goods, the truth is that Mexico possess a substantial amount of skilled labor that is constantly growing. The Journal of Commerce described how the Mexican government builds clusters of communities aimed at prioritizing manufacturing and attracting educated workforces.

Shelter services provide real benefits
To receive accurate reports on specific areas in Mexico where skilled labor is plentiful and crime rates are low, U.S. companies want to work with partners possessing first-hand experience with the territory.

Without information, people are forced to make assumptions, and this is never a position competitive businesses want to be in. Shelter services can provide full background investigations on areas where businesses plan to build new manufacturing facilities while delivering reports on demographics and strategies for finding and keeping the best local talent. Distance isn't an obstacle when an effective partnership with a Mexican shelter service provides complete visibility, resources and opportunities.

Other fears about foreign supply chains, working with Mexican suppliers and bringing outside facilities up to speed can be overcome through accurate data provided by a trustworthy partner. Initial contacts with shelter services should calm fears, and ongoing relationships should prevent new ones from cropping up.

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When:
18 – 20 October 2016

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Saltillo, Coahuila