Low Cost Solution to Reach the U.S. Market
Established in 2011, RRD's Mexican supply chain facility is located in San Jeronimo, half a mile from the New Mexico international border. It offers all the advantages of a Mexican location with quick and easy access to U.S. distribution infrastructure. This 162,000 square foot facility offers lower cost production, proximity to the U.S. market, and greater flexibility and responsiveness in serving the technology, medical and telecom industries.
This state of the art facility has production and warehouse floor areas boasting the latest environment, health and safety (EH&S) features and offers comprehensive services, including packaging design, sourcing, kitting, configuration and fulfillment. The facility is located in one of the best planned industrial parks in Chihuahua with a highly-educated, English-speaking management team and staff with extensive experience.
RRD's high security facility is CCTV monitored and has 24/7 security. This ISO 9001 accredited facility is C-TPAT and Empresa certified and TAPA compliant, helping to ensure a smooth flow of goods as quickly as possible to the U.S. market on a daily basis.
The Maquiladora Concept
The Maquiladora manufacturing model is the prevalent business structure used along the U.S./Mexico border. The model delivers many benefits that allow foreign companies to remain cost competitive by taking advantage of well established Mexican Government incentives. Benefits of the Maquiladora model for companies include:
- Recovery of all limport sales taxes for permanently imported items
- Reduced customs fees
- Recovery of all sales taxes on purchases in Mexico
- Promotion (PROSEC) programs to eliminate or reduce most-favored-nation import duties on various imports.
Nearshoring as an Alternative
As labor rates and freight costs in Asia continue to increase, many technology, telecom, consumer electronic and medical device companies are beginning to look at the merit of an alternative supply chain. As a consequence, Mexico has re-emerged as a viable and attractive alternative. Labor rates are now competitive with those of China and other Asian countries. Bulk shipments of components to RRD's facility in San Jeronimo could:
- Reduce inventory carrying costs
- Improve forecasting
- Increase supply chain flexibility
- Permit shipment of finished goods by low cost/low carbon footprint ground transportation.
As a strategic resource for serving the North American market, the facility in San Jeronimo can provide a flexible nearshoring solution that could increase profits and ensure speed to market for products.