Nearshoring How-To Series with JL Nearshoring’s Zarazua

The single most important thing in working with Latin America, according to the nearshoring advisory company, is to realize Mexico is not China.

Navigating a new country to source your products from can be a daunting task, so companies like JL Nearshoring, which is based in Laredo, TX and specializes in helping clients manage supply chains and sourcing from Mexico, offers advice for those getting started in Latin America. We asked the company’s Javier Zarazua, for how-to guidance on the process.

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

Javier Zarazua: They first need to realize is that Mexico is not China. Over the last 40 years, China has developed a super-integrated ecosystem that allows anybody to access a digital platform from anywhere in the world, get quotes and order products very easily. The second thing people need to realize is that there many products that are not competitive in Mexico. For these reasons, companies need help from local firms to navigate the sourcing landscape in Mexico.

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

JZ: Mexico as an ecosystem doesn’t have an integrated online purchasing platform like Alibaba. There are several directories online, one of the biggest is https://www.dirind.com/home.html.

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

AZ: Yes. Local agents know the landscape and can save a lot of time in DYI activities. Depending on the industry, they may know suppliers who have great quality, good deliveries and can be competitive.

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

JZ: It is crucial. Creating rapport with factory owner(s) is a must. Walking the factory, seeing their machines and processes and making some type of assessment of quality and financials are also very important. Personally, I normally DO NOT recommend a factory I haven’t visited.

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

JZ: Customers can use the current logistics personnel or provider used in the United States if this team or company already has experience in and out of Mexico. Otherwise, get one that has the experience.

NAN: How long should it take to get started, from your first contact with a potential supplier to the delivery of the first order to your U.S. distribution facility?

AZ: It varies by industry and the complexity of the product. Easier ready-made products can take a few months. Highly complex, custom-made products with very high volumes can take years due to initial development.

NAN: Coming back to your original point, for companies used to working with Asia, what’s the most important thing to remember?

AZ: Mexico is not China. Those of us who work with China, are spoiled.