OMCC’s Matchmaking service can do the research for you to find the right business partners in the Cali-Baja region.
After a brief interview with you to understand the type of company you are looking for, they will find the right supplier/customer for you.
Once you’ve approved the companies they have found for you, OMCC will arrange meetings for you with these companies, and even drive you across the border to meet with them.
They will do all of this for only $300 for chamber members and $350 for non-members.
Dinghy Doctor, a San Diego based boat repair business, was looking for a more cost effective supplier of high quality fiberglass and through the OMCC Matchmaking Service, they were able to find a local supplier in Tijuana that met all of their needs and has become a valued supplier of this material for their operation.
With their knowledge of these two chamber members, OMCC was able to make a successful introduction of DJ Orthopedics, a San Diego based company that has a large manufacturing operation in Tijuana with NULU Languages that provides language training and translation services. After their introduction, DJ Orthopedics contracted with NULU Languages to provide English lessons to many of their key employees in their Tijuana facility.
Make sure that the prices you are quoted contain all the freight charges, and border crossing fees required to get your product shipped across the border into the US. This will make it easier for you to calculate the freight charges from there to your facility.
It is best to have your suppliers send you a sample of the product you are buying so you can verify it meets your print before they do a full production run.
It is important to know the payment terms your supplier would like as sometimes there might be the need for a down payment up front to cover the cost of tooling or raw material and you don’t want to be surprised.
Wherever possible it is best to visit your supplier’s facilities to understand their full capabilities firsthand. It is common for companies in Mexico to not do a very good job of self-promoting their true value and you may find that they can do more for you than you had originally thought.
If they don’t have a website, this is not a red flag to not do business with them. There are many very capable companies in Mexico that either don’t have a website, or if they do have one it may not be very impressive so this alone should not be a reason to not do business with them.
Even though your supplier corresponds with you in English, this doesn’t mean that they are completely comfortable doing business in this language. If you don’t have someone on your staff to communicate with them in Spanish, then just be patient with their communication style.
Be aware of the fact that most companies that are manufacturing products in Mexico still don’t do their Engineering and New Product Development in Mexico. So if you are looking to influence the design of their new products, this is something to take into account.
Find out if your customer is manufacturing products under the rules of NAFTA (North American Free Trade Agreement), or if they are doing it for exclusive sale of their end product into Mexico. The difference is that if they are doing it under the NAFTA rules then you won’t need to pay any duties when you import your goods in to Mexico while if it is for domestic Mexican consumption, you will need to pay duties and a Value Added Tax on your goods when they cross the border.
When you are looking to take business from a competitor that already has it, find out if the price you are competing with includes freight and import fees or not. By playing with this data, your customer may be trying to set a target for you that are lower than you really need to meet to secure the business.
Verify if your customer is planning on paying you in USD or Pesos. If you are going to accept Pesos then take into account the fluctuation in currency as it can change significantly over time and the USD is quite strong these days so this could affect your net profits.
It is very common to not extend credit to a customer in Mexico for their first few orders until a partnership has been built. If you are doing business with a customer in Mexico that is working under the NAFTA rules, it will usually be easier to get paid as most times the payments are coming out of an Accounting department in the US and you will be paid in USD.
After you submit your quote, it is wise to follow up with your customers to get feedback as sometimes things move at a slow pace in Mexico either due to approvals that are required, or questions that they may not be comfortable asking, or the heavy workloads that need to be processed.
Be patient if you can’t get ahold of your customer sometimes. As the infrastructure in Mexico continues to grow, it is not always easy to get ahold of people and they are usually not just avoiding you.
If you have never been to the Cali-Baja region before, this video will give you a good idea of what you can expect when you start to do business here.Tijuana Industry Site Visit.
With an office, or a warehouse, in the Cali-Baja region, you will be able to do a better job of servicing your customers locally, coordinating shipments from your vendors either directly back to your customers, or to your final assembly plants in the US. In addition, you will be able to do a better job of managing your business in this region if you are physically located there. OMCC - Warehousing.
You will be seeing a significant savings in your landed cost versus products you had been buying in Asia. Not only are the labor rates in Mexico now cheaper than they are in China, but when you factor in the added lead time required to ship your products from Asia, and the extra inventory that you have to hold to cover these delays, you will be way ahead of the game buying from Mexico.
If you are servicing your customers in this region with stock you have locally, it will be much harder for your competitors to get any kind of a foot in the door to try and take this business away from you.
Allows you to reduce your overall costs as you are able to take advantage of the numerous nearshoring opportunities that exist for you in this region. These options give you much lower labor rates and operating expenses than you will find in any other region of the US. OMCC - Near Shore Manufacturing & Contract Manufacturers.
You are able to tap into an established vendor base that has a wide variety of product capabilities and has already met the quality requirements of the aerospace, automotive, medical and electronics industries as they are well established as suppliers to the larger OEM’s in these industries OMCC - Manufacturing & Manufacturing Services.