Suppliers build facilities south of U.S. border to cater to American OEMs in Mexico

07/1/2013 | Material Handling & Logistics online

Several American suppliers are opening facilities located south of the U.S. border to cater to American and international original equipment manufacturers in Mexico. This move helps OEMs reduce transportation costs and address logistics-related concerns. "Our schedule frequently changed, and there were always changes in our customers' requirements. So, with our supplier right down the road, we were able to achieve the necessary flexibility without carrying a lot of inventory or worrying about shipments that were somewhere en route from the U.S.," said D'Arcy North, Daimler Trucks of North America's former materials manager.

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