Top Five Challenges to Cross-Border Trade with Mexico
(Materials Handling & Logistics – Lalo Solorzano and Tamara Dwyer)
Companies within the United States have long looked to Mexico to expand manufacturing operations, whether by directly owning and controlling operations in Mexico, or working with outsourced and contract manufacturers. Mexico’s proximity to the U.S. and its long track record of providing high-quality inexpensive labor and resources make it an attractive location.
Mexican manufacturing is an integral part of the value chain for many commodities from agriculture to high-tech. The end-to-end assembly is sometimes completed within Mexico, but more commonly the process spans multiple countries. Raw materials, components and sub-assemblies are sourced from Mexico for final assembly in the U.S., or parts are sent to Mexico for final assembly and completion. Repair and rework activities are another element of cross-border trade. A growing trend in value chain collaboration is merge-in-transit. One facility receives parts and sub-assemblies from multiple locations, then packages and routes shipments to a distribution center or directly to the end-customer. All these scenarios require tracking shipments across the U.S.-Mexico border.
Balanced with the many benefits of cross-border trade with Mexico are concerns with regulatory compliance and security. Within this article, we’ll look at the top five challenges… Read more here.
Date: February 23, 2011