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tariffs on imports from Canada, Mexico, and China is impacting global trade networks, affecting industries ranging from automotive and electronics to agriculture and energy. auto parts are sourced from Mexico, making the tariff impact immediate and severe. Mexico and Canada have imposed 25% tariffs on U.S.
Companies leaning heavily on global sourcing? Tariffs on steel from Chinaup 25%and retaliatory moves from Canada and Mexico may turn supplier relationships upside down. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. For example, U.S.-based
Businesses will need to ensure accurate data reporting across core operations such as sourcing, procurement, and transactions. from Canada and Mexico. Mexico-Canada Agreement (USMCA), which governs $1.8 Mexico-Canada Agreement (USMCA), which governs $1.8 Consequently, demand for robust GTC solutions will continue to rise.
Jorge Gonzalez Henrichsen and Joe Lynch discuss why China is moving to Mexico. Jorge is Co-CEO of The Nearshore Company , where he helps North American, European, and Asian manufacturing companies to successfully establish reliable manufacturing operations in Mexico. Sustainability – long supply chains produce more green house gases.
What do you think about Mexico? My short answer: What do your customers think about Mexico? The study highlights the opportunity for 3PLs this way: The growth of logistics services plays a crucial role in rendering Mexico’s businesses cost competitive as compared with similar ventures globally. percent and truck by 8.8
It seems like we’ve come full circle with Mexico. A lot of companies set up operations and sourced from Mexico back in the 90s, then the focus shifted to China and other Asian countries, and now Mexico is back in the spotlight. What is it about Mexico that makes it an attractive trading partner again?
As reported by Paul Wiseman on February 7th, “For the first time in more than two decades, Mexico [in 2023] surpassed China as the leading source of goods imported by the United States.” This news prompted us to ask members of our Indago supply chain research community — who are all supply chain and logistics.
Trade flowing across the United States-Mexico border has grown exponentially since the North American Free Trade Agreement (NAFTA) was enacted in 1994. In 2016, the value of goods traded between the two countries topped $525 billion, making Mexico the third largest trading partner of the U.S. Companies carrying freight across the U.S.-Mexico
Companies that previously prioritized cost-cutting and centralized sourcing quickly found themselves exposed to serious production and distribution risks. In response, many organizations have shifted toward decentralized and regionalized supply chain models, distributing production and sourcing across multiple regions.
In Part One of the series , Michael observed that standard sourcing solutions struggle in efforts to support direct materials sourcing because of specific challenges in the software design. He further established the case for why supply chain teams need to context integrated sourcing as well as procurement.
Fictiv’s Global Manufacturing Supply Chain brings together AI-driven technology workflows, a world-class global manufacturing network, and teams of local manufacturing experts to simplify sourcing for custom mechanical components. By leveraging Fictiv’s four global manufacturing centers in India, Mexico, China, and the U.S.,
The following will delve into some of the intricate farm-to-table challenges that supply chains face across sourcing, demand planning, procurement and inventory management, transportation, and warehousing. The blackberries you eat today could be from Mexico, and the ones you buy next week could be from California.
Companies importing and exporting goods, be it finished retail products, manufacturing components or materials, now face substantial cost and price pressures that squeeze margins and force difficult pricing, sourcing, operations and distribution decisions. For example, you might source from a domestic supplier that doesnt incur a tariff.
For example, it can look like imports from China are cheaper than the same goods imported from Mexico if a company is not relying on analysis produced by an advanced good global trade compliance (GTC) system. Furthermore, the transit time from Mexico averages just 8 days versus 40 to 48 days from China. FTZ’s have many advantages.
As organizations look for reducing dependencies on concentrated sources of supply, Eastern Europe, Mexico, and South Asian countries will start providing viable alternatives to the current manufacturing powerhouse countries. AI plays a significant role in harnessing the power of this.
based carrier’s role in Mexico as nearshoring manufacturing trends drive more cross-border trade. Based in Mexico City, Estafeta handles both packages and larger freight shipments and delivers domestically in Mexico and across the border with the U.S.
Brian Grass - Chief Financial Officer We also began dual sourcing more of our production and are now intensifying those efforts even further. We began to build out our internal Southeast Asia sourcing capabilities to accelerate supplier transitions out of China and in many cases dual source our production. Christopher J.
Avoid the pitfalls of single sourcing and learn strategies to build a more resilient supply chain. Yet, within the pursuit of efficiency lies a lurking peril: single sourcing. The pandemic was a wake-up call to the dangers of single sourcing. What is single sourcing and sole sourcing?
Find alternate supply sources for the material and goods that are outside the affected tariffs. Companies that rely on raw materials, auto parts, and industrial components from Canada, Mexico, and China may experience price fluctuations. Pass the cost on to customers, which can affect pricing strategies and customer loyalty.
Supply Chain Matters highlights concerns raised by automotive industry interests regarding evolving component sourcing among China based suppliers within Mexico. The report notes that electric vehicles assembled in Mexico can qualify for U.S. The report notes that electric vehicles assembled in Mexico can qualify for U.S.
The excess capacity includes warehouses in New York, New Jersey, Southern California and Atlanta, according to an article in Bloomberg.com that referenced anonymous sources. and North American countries (Canada and Mexico) in March amounted to $141.9 The US Department of Transportation reported that transborder freight between the U.S.
Before FreightWaves, Anthony received his Bachelor’s and Master’s degree in Economics from New Mexico State University. Anthony Smith is the Chief Economist for FreightWaves, the leader in providing global supply chain market intelligence. FreightWaves is made up of three interconnected pillars: FreightWaves’?
of east coast and Gulf of Mexico imports in September, according to an article from the Business Information Industry Association. The fuel supply chain could be one of many chains affected by a hurricane, especially if the hurricane threatens the Gulf of Mexico hampering the oil fields like Katrina did in 2005.
Mr. Frasquet is the executive director of corporate procurement, although his responsibilities include a much broader set of supply chain responsibilities than just sourcing. In Belcorp’s case they have four factories located in Colombia, Mexico, Peru, and Ecuador. How do we best handle surging transportation costs?
Chipotle Mexican Grill says its goal to source and sell chicken that’s certified as humanely raised has been delayed because its suppliers weren’t able to make the necessary changes without disrupting supply. Demand for chicken has surged in the last few years, as it is seen as a healthy and relatively cheap protein.
Blockchain Allows Brand Owners and Retailers to Trace Source Materials Ahead of Pending U.S. In addition, we see broad applicability across many industries as consumers demand greater visibility and understanding of where products are sourced and manufactured.”. ATLANTA/MIAMI — December 3, 2020 — Logility, Inc.,
Con-way Freight Raises the Bar on Mexico Service, Adds Door-to-Door Tracking, 24-Hour Customer Resource Center, Enhanced Web Tools. Source data is a combination of reference and benchmark data from third parties as well as econometric models and formulas. New e-commerce strategies threaten UPS, FedEx ( Reuters ).
For many years the predominant priority in sourcing has been finding the lowest cost possible. What is the appropriate sourcing strategy going forward? Should you keep work in low cost geographies, establish sources in multiple geographies, or on-shore work into high cost domestic countries? Geographic Sourcing History.
What was a stable sourcing strategy yesterday may be obsolete today. Mexico-Canada Agreement (USMCA). Whether it’s through preferential rules of origin, special duty classifications, or exemptions based on product use, these loopholes can be critical decision-making tools when evaluating sourcing locations or manufacturing moves.
In an interview with My Purchasing Center , Nancy Huff – Sourcing Solutions Manager at business processing, technology, and procurement service provider Xchanging – spoke of many tangible benefits that come with a supplier diversity program. Access to a whole different network.
It’s easy to oversimplify the differences between sourcing for parts locally or internationally. When considering where to purchase from, the prevailing idea seems to be that domestic sourcing allows for better control and shorter lead time, but international sourcing is more cost-effective. International Sourcing.
Mexico may become the global manufacturing nerve center if the country plays its cards right. According to Deloitte’s 2016 Global Manufacturing Competitiveness Index, Mexico ranks number eight out of 40 countries including Canada, Sweden, and Vietnam. Mexico has its share of challenges, of course. Europe and Asia Follow Suit.
A member of my team is a member of global sourcing. The person looks at alternative sourcing over ten years. In the past, sourcing was a manual activity. Now we go into the solution and click on Mexico. We were dealing with a legacy of fragmented data sources, all different regarding data types used (e.g.,
Then Jabil handles the sourcing and manufacturing of those products. They are sourcing from over 27,000 suppliers. Those sites are primarily located in China, Hungary, Malaysia, Mexico, Singapore, and the United States. The company engages in contract manufacturing services for companies.
And this low cost fostered a mentality of incremental thinking with mid-level managers focused on squeezing out 1-2% a year in cost savings through sourcing, says Pete Guarraia of Bain consultancy. . But converging costs have reduced the need for far flung supply chains in many industries. Ecommerce is also driving supply chain change.
Mexico has become more attractive, and many companies are looking at alternative sourcing in Latin and South America. When the added costs of transportation and inventory working capital impacts are added, there is a solid logic to bringing manufacturing back to North America.
The international inbound transportation service is only available to Walmart Fulfillment Services (WFS) sellers that source or manufacture goods in China, and all cargo must be shipped from Yantian, Shanghai, or Ningbo ports. and Mexico, according to the notice. according to the Walmart Marketplace website.
Finally, in making sourcing decisions, global trade compliance needs to be part of companies strategic sourcing programs. For example, it can look like imports from China are cheaper than the same goods imported from Mexico if a company is not relying on analysis produced by an advanced global trade system.
The survey shows that a full third of companies with global supply chains intend to move their sourcing and manufacturing activities out of China in the next few years. With trade wars and tariffs pinching operational profitability, manufacturers are looking at alternative locales like VietNam, India and, Mexico.
The completed engine is then sent to a vehicle assembly plant in Mexico, traveling through the U.S. Finally, the assembled vehicle crosses the Mexico-U.S. market in Mexico. After machining, the piston returns to Canada for engine assembly, where it is exempt from Canadian tariffs on auto parts.
The Supply Chain Matters blog highlights a published report indicating that Mexico is increasingly benefiting from a rethink of prior globally extended supply networks. In this vein of shifting supply sourcing actions, we continue to highlight for our readers surveys, editorials and developments related to this important strategy area.
The company has 18 plants and operating locations in the US, Canada, and Mexico as well as plants and labs in the UK, China, and Indonesia. They also have 20 sourcing locations across North America from which they can ship make to stock products. The sourcing centers are key to just-in-time, same-day, next-day deliveries.
Mexico line as border agents moved (Reuters) Global trade growth loses momentum as trade tensions persist (WTO) Shipping Comes to Terms With $50 Billion Clean-Fuel Bill (WSJ – sub. Mexico Border Crossing Delays. Kurt would have been 52 years old today. Here we are now, entertain us.”. req’d) DSV to Buy Panalpina in $4.6
Mexico Customs Management. As reported in the Financial Times : Under the most eye-catching plan – known as Synchronised Delivery Solution – a package due to be delivered to a given address will wait for others coming from other sources, which will then be delivered with it. . Mexico customs process.”
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