ILS has the perfect solution to easily position your raw materials in Mexico near your Tier-1 clients' manufacturing plants.
Distance and complex logistics can make it difficult to deliver raw materials on time and maintain a safe stock. This can hurt your reputation and limit your growth potential.
The ILS Company team of specialists and infrastructure, have been specially designed to help you become a Strong Tier-2 Vendor to your Tier-1 clients located in Mexico.
By taking advantage of the ILS VMI Model and its IMMEX Program, your company will be able to meet the demand and deliver the goods to a Tier-1 manufacturing facility with a safety inventory in Mexico.
I AM HERE TO TAKE YOUR INVENTORY MANAGEMENT TO THE NEXT LEVEL
Why Mexico?
The current economic context and nearshoring have favored foreign investment (FDI) in Mexico, especially in manufacturing, assembly, and distribution processes. These facts have favored the growth of the Manufacturing, Maquiladora, and Export Services Industry (IMMEX) programs; in fact, imports from these companies represent 43% of total imports, which demonstrates the confidence of foreign companies in the Mexican market.
In the first four months of 2023, the IMMEX program has a total of 12,750 production plants throughout the country, which translates into jobs and economic growth in the regions where they are located.
BENEFITS OF VMI FOR TIER-2 SUPPLIERS
This program allows you to make temporary imports of goods with productive processes and/or services to export goods or provide export services with multiple benefits:
Reduced inventory costs
Optimizing inventory levels reduces the need for excess inventory, which reduces the costs associated with storage and maintenance.
Improved supply chain management
Suppliers have better visibility into customer demand, allowing them to plan more efficiently and respond faster to changes in demand.
Reducing the possibility of low stock or overstocking
Maintaining optimal inventory levels reduces the risk of low stock , which is critical to maintaining customer satisfaction.
Increase production efficiency
Suppliers can better plan production with more accurate demand data, resulting in increased efficiency and reduced production delays.
Improved customer-supplier relationship
The VMI model fosters closer collaboration and a better partnership between customer and supplier, which can lead to a better understanding and satisfaction of customers’ needs.
Reduced lead times
By managing the ditributor's inventory directly, suppliers can ensure that the necessary products are available to customers.
Flexibility and adaptability
VMI systems allow companies to adapt more quickly to changes in the market or customer demand.
Reduced procurement costs
Efficiently managing inventory and orders can reduce the costs associated with acquiring new inventory, including transportation and order fulfillment costs.
Embrace a worry-free business experience with ILS as your cornerstone
IMMEX PROGRAM BACKGROUND
The IMMEX (Industria Manufacturera, Maquiladora y de Servicios de Exportación) program in Mexico is a government initiative for manufacturers in the country. They can temporarily import goods and materials to manufacture and export products free of taxes and duties. However, the initiative is conditional, so companies will have to export the finished products to receive its incentives.
ILS VMI SERVICE is a perfect solution for TIER-2 to have inventory placed in Mexico
Situated just minutes away from your client’s production line, our warehouses offer unparalleled convenience.
Take control of your supply chain and become a leading Tier-2 supplier in Mexico. Contact ILS today and let’s discuss how our VMI model can unlock your full potential.
