How to Nearshore: A New Series on Everything You Need to Know

Sourcing out of Latin America can seem like a daunting task but Nearshoring America Now’s new series offers a primer on how to do it.

Chuck Bowen has been working bringing in product from Mexico for more than 18 years and over that period has learned a lot about how to do it best. As the CEO of Blue Artisan Group, a San Antonio-based handcrafted leather goods company, he sources for many U.S. companies as well as selling his own branded line of products. He also advises companies looking to work in Mexico. In the first of our new series on How To Nearshore, we talked to Bowen about how U.S. companies that want to get started sourcing from Mexico should begin the process.

Q: What’s the first thing a U.S. company should do if they want to begin this Mexican sourcing process?

A: The most important step is to start doing some research on Mexico, the country and its regions. Manufacturing in Mexico is very regionalized (similar to China and other Asian countries) because they need the local supply chain and a company should find out which region specializes in which products.

Q: What’s a good resource for information on Mexican sourcing?

A: You should reach out to the chambers of commerce in those states that specialize in the products you want to source. They are very helpful and, don’t worry, they speak great English. These chambers also can tell you about local events and shows taking place for these categories.

Q: Do you recommend using a local agent or working directly with the factory?

A: While an agent can be preferable, this is not like Asia where you are so far away from seeing them in person or there are language issues. We work with about 30 clients and I’d say only about 10% have agents, mostly smaller companies.

Q: How important is it to see a factory in person?

A: Again, that’s preferable but most of our clients have never seen the factories they are working with. We think communications through Zoom and online are very important and if you do visit the factory, it’s probably best towards the end of the product development cycle. And if a factory doesn’t want you to visit, that’s a red flag.

Q. Once you’ve started sourcing, what’s the best way to handle distribution out of Mexico?

A. Unless you’re dealing with very big retail customers, it’s easier and more efficient to bring all your production across the border at one time and handle distribution out of a DC in the States. Texas is great for that. Freight is almost always ground and with one shipment, you’re just paying for that one delivery and one broker’s fee.

Q. For companies used to working with Asia, what’s the most important thing to remember?

A. Mexico is not going to be like China, you have to remember that. I’ll answer the question with a quote from John Peterman, the real J. Peterman who is a friend of mine I’ve worked with over the years. He says when sourcing, the three most important things are price, process and quality: pick two.

Q. Thanks Chuck and see you at the Nearshoring Now Expo in Dallas in December.