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Ease Market Expansion Concerns With Offshore Outsourcing

2 Mins read

The job market can be challenging and cruel. However, Mexico appears to be emerging as one of the markets that businesses from around the world want to go to expand their markets. This is one of the reasons why getting assistance from shelter companies in Mexico has been gaining traction with manufacturing companies over the past few years.

Research has confirmed that it is possible for firms to experience dramatic growth if they are able to reduce the common risks that are associated with expansion and place their products in a high position within the market.

Currently, over half of executives in manufacturing companies firmly believe that their company’s supply chain is more prepared for market expansion in the 21st century than at any other time in history. However, it is very important that these businesses are mindful of the changes that are required when they are making a transition to another company.

Emerging markets, like Mexico, offer huge opportunities. Unfortunately, they also come with unique challenges and characteristics for several reasons:

  • Constant push for business growth
  • Low maturity of the processes for supply chains
  • Volatile demand

Preparation of the Supply Chain

It is important that manufacturing executives have a plan of action in place. This plan will give them insight in what their supply chain processes may look like once they are in an emerging market like Mexico. By partnering with a visible shelter company, manufacturers will have experienced management services for their importing and exporting needs. Thus, the company will be able to efficiently and quickly transport customer goods.

These types of solutions will also help to ensure that all deliveries to the facility, suppliers and distributors are made on time. As the organization becomes better prepared to handle operations south of the border, the transition process will become much easier.

Learning to Adjust to New Market Rules

Although a business may be very successful, this does not mean that it will experience the same level of success in Mexico. In fact, the most common challenge when shifting operations into an emerging market for supply chain processes is dealing with any changes that are related to tax or regulatory requirements.

There may be other issues with compliance such as income tax laws and income tax requirements. These concerns confirm the importance of why a manufacturing company should work with a reputable shelter company when entering into a new market.

Human Capital

Ease Market Expansion Concerns With Offshore Outsourcing

Planning to transition into an emerging market is not complete until consideration is given to the most important factor of all: human capital. Employees must be brought into the emerging market, and there are risks and challenges when doing so.

When an organization is ready to employ people in another region, there are several laws, norms and regulations that must be met. Some of these factors are varied from the same ones that are in the United States. The differences may be too much for some companies to justify transitioning into an emerging market. Shelter companies can help organizations build a talented and skilled workforce.

The pros outweigh the cons for many companies that want to transition into Mexico’s emerging market, as low cost manufacturing in Mexico can help strengthen the entire North American market.

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