Optimize your cross-border supply chain
Finding essential logistics providers in Mexico
As Mexico’s importance in international manufacturing, AI cloud technology logistics support, and general trade grows, the country’s strategic location and production-friendly regulations attract companies across a broad range of industries.
Fortune 500 organizations and beyond are re-evaluating their manufacturing and distribution strategies in Mexico, and selecting a strong logistics partner is an integral piece of the puzzle.
Through tax incentives like the IMMEX program and its ability to offer companies an alternative to Chinese manufacturing, Mexico has established itself as a powerful player in global trade.
While these business benefits have captured the interest of many international companies, cultural and regulatory differences can stand in the way of cross-border success. But the right logistics partner will help you navigate these factors and create a distribution plan that grows your bottom line.
When building out your manufacturing and shipping plans south of the U.S. border, take time to consider your logistics needs and what to look for in a Mexico-based freight forwarder.
Important logistics considerations in Mexico
Expanding or introducing distribution in a new country can seem straightforward, causing companies to take approaches that mirror their U.S. growth strategy. But foreign operations require more than simply replicating domestic systems. Recognizing and planning for the differences in Mexico enable organizations to plot a successful path forward. Here are key areas to keep in mind:
Operational differences
Mexico’s proximity to the United States and cross-cultural similarities lead some businesses to expect similar processes when operating south of the border, but these expectations are unrealistic.
While experienced logistics providers can expedite timelines, steps like signing a power of attorney (POA) or clearing customs often take more time in Mexico. Layered bureaucratic procedures can hold up shipments, further underscoring the importance of a knowledgeable freight forwarder who acts as your advocate.
Regulatory constraints and incentives
While dense bureaucracy may dissuade companies from expanding operations in Mexico, the country’s manufacturing perks offer attractive benefits for many businesses. Through the IMMEX program, international manufacturers can import raw materials and product components tax- and duty-free, provided the products are assembled within a limited time frame (typically 18 months to two years) at designated “maquiladora” factories.
Selling the finished goods elsewhere qualifies shipments for tax-free exports. Additionally, governmental agreements within North America often make shipping from and within Mexico much easier and more cost effective than similar overseas relationships.
Geographic knowledge
Developing a Mexico-based logistics strategy rests on strong geographic and industrial knowledge of the country. For example, manufacturers may look for logistics partners with a strong presence in the well-known assembly hub of Monterrey, whereas those transporting food may search for providers based in Mexico City, which enable easy access to growers.
Why AIT?
IT’s professionals apply their in-depth knowledge of logistics when delivering world-class supply chain solutions for a diverse clientele doing business across Mexico.
Our Mexico team mirrors AIT’s global network with flexible shipping that is customized to meet your company’s needs. We offer value to clients through on-the-ground support, IMMEX certification and comprehensive logistics services — from consulting clients on business decisions to sea, air and road transport.