The document discusses Saltillo, Mexico which has a population of over 600,000 people and has been an important industrial city since the 1800s. It originally focused on foundries but is now considered Mexico's "little Detroit" with a growing supplier base. The document provides information on accessing Saltillo via roads, railways and airports. It also outlines challenges in finding suppliers in Mexico and emphasizes the importance of cultural understanding, such as allowing more time due to differing priorities, when developing business relationships with Mexican companies.
1. Offshore Group Manufacturing in Mexico Summit Saltillo Coahuila Getting to Know the Saltillo Supplier Base As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
2. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
3. • Founded in 1577 • In 1824 made the capital of the State of Coahuila • Population of 633,667 citizens • Metro area 725,000 citizens Saltillo As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
4. Saltillo • • • • Saltillo Tiles Woven Multicolored - Sarapes Saltillo used to be a foundry town Saltillo now it is considered by many the Mexico’s little Detroit. • Powerbrace arrived in 2004 • Since then our Supplier Development has started. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
5. Saltillo Roadway Access As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
6. Saltillo Railway Access As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
7. Saltillo Airway Access As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
8. Finding Suppliers • Mexican companies are just starting to advertise on Internet. • Investment does not go into marketing strategies. • The way many companies is constituted contributes to the issue. • Company names sometimes does not help. – TUFF RODEO (High Quality Powder Coating Supplier) – EL CONDOR (MRO Integrator) – LA PALOMA (Steel source) As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
9. Finding Suppliers • Be patient! • Several Chambers: – – – – CNIME www.cnime.org.mx CANACINTRA www.canacintra-digital.com.mx COPARMEX www.coparmex.org.mx CANACERO www.canacero.com.mx • Establish strong networks with companies in the area. • Scout the area, you never know what you will find. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
10. Finding Suppliers As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
11. Supplier Development As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
12. Assessment of the Supplier Base As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
13. Cultural Differences • Honor continues to be basis for establishing agreements. • Communicate in written notice all your specifications and requirements. • Patience (different priorities) – This is NOT to say that Mexicans are never in a hurry. • Chaos (Worry Curve) – The curious part is that everything DOES get done. • Relationships and social networks are EXTREMELY Important As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
14. Workforce • Saltillo the “Athens”of Mexico • Language Barriers • Mexicans are more familiar with Manufacturing knowledge. • Strong Values: – Work for survival – Loyalty – Mexican Holidays As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
15. CFE 2007, SQA BIMBO de Mexico 2007, NQA Quality Standards • 1980’s the big shift. • Majority of Suppliers are certified. – Great Understanding of continuous Improvement • Premio Nacional de Calidad • Premio Estatal de Calidad. • To Consider: – Review administrative procedures – Test Labs As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
16. Availability of commodities • 7.3% Domestic Electricity. • 29.1% Domestic Natural Gas. • 2.2 Gross Domestic Product. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
17. Availability of commodities Steel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
18. • Mining Supply • Wood Supply • Water Supply • Mexico’s Electricity based on coal. • Oil bonanza is drying up Availability of commodities As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
19. Availability of Commodities • MRO – – – – – Evaluate your machinery Spare parts less expensive in USA Be aware of forklifts! Evaluate your current suppliers Work with Offshore ahead of time • Services – Do it yourself thinking! As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
20. • Mexican Suppliers: – Work with less logistic hassles. – are in near proximity to USA. – are more familiar with Manufacturing knowledge. – Mexican Suppliers are more in tune with US Standards. • Take your time. • Establish administrative procedures in advance • Be open minded. Conclusions As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com
21. Thank you very much and good luck wile doing business in Mexico Questions & Answer Session? As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com