Is your industry’s competitor moving its fulfillment operations to Mexico? Discover 5 reasons why here! We bring to the table the logistics trends and topics pertaining to your growth and operations!
Transport, shipping, and fulfillment costs impact your bottom line and contribute to transcending in the market. These costs vary according to an important factor, location. Mexico is recognized for its manufacturing hubs, but globalization vulnerabilities were exposed by pandemic disruptions. Therefore relocating fulfillment centers near production has bred a new logistics trend called nearshoring.
Let´s look into 5 benefits of integrating fulfillment centers based in Mexico into your global supply chain:
- Operating Costs
Working with a fulfillment provider that covers all of your supply chain needs, including storage, labor, and logistics can mean undercover new profits as costs are more affordable in Mexico compared to American or Canadian offers.
The availability of a high-quality workforce is also an issue supply chain management struggles with, but outsourcing to Mexico doesnt mean you would sacrifice high-level of service while saving on labor costs.
- Low Taxes and Duties
US and Mexico have cultivated and continue to enrich their preferential trading agreements, allowing foreign trade to thrive. If your business ships direct-to-consumers, you can apply Section 321 customs compliance to export your goods without paying duties. Ask our experts about Section 321 requirements and implementation!
- Reduced Shipping Times
Subsequently, section 321 facilitates reduced shipping times with faster clearance through customs. You will need to present the following documentation:
- Country of origin
- Shipper information
- Description of merchandise
- Recipient name and address
In addition, Mexico’s geographic proximity to the U.S. can result in shorter shipping times with the right customs broker partner.
- Leveraged Foreign Trade
Mexico and USA continue to strengthen their commerce with free trade agreements, opening the door to growth and opportunities for your business.
Mexico also has numerous free trade agreements with other countries across the world, eliminating barriers concerning duties, tariffs, and more!
- Quality Customer Service
Hosting your fulfillment in Mexico includes taking advantage of the following:
- Parallel or similar time zones for effortless communication with the leadership team at your fulfillment center to discuss and resolve business issues.
- English-speaking population, which makes it easy to hire managers with whom you can easily communicate and independently field customer service questions.
- Experience – It’s possible to find an agent or service provider with years of experience providing top-notch fulfillment services to companies in the U.S.
Nearshoring is a great strategy to create time and cost savings year-round. Our experts can provide further insight into how this can breed revenue growth and accelerate the pace to reach your goals! Get in touch here!