Questions To Ask Before Contracting A Mexican Manufacturer

Contracting a Mexican manufacturer to produce your part or component (auto parts or otherwise) is a good decision. Mexican manufacturers can offer a blend of low labor costs, high-production quality, and direct access to the US and Canadian markets. (A part or component produced by Intran in Mexico, for example, can be trucked to the USA in as little as one day).

Contracting works best when both parties are informed. To that end, we’ve created a list of questions that you should ask before contracting a manufacturer in Mexico.

Do You Have Experience Producing My Parts?

Manufacturing experience is important. Without it, a contract manufacturer might not be able to meet quality requirements or production needs as they deal with the learning curve that comes when taking on any new part.

Of course, experience can transfer. A company that has produced a complex automotive fuel assembly is capable of producing similar components for marine or aviation. But if a company has never produced a component similar to what you need, be sure to to ask a lot more questions.

Can I Visit Your Facility?

Intran Manufacturing Plant

One of the big advantages in contracting with a manufacturer in Mexico: It’s easy to go and see their facilities. (More on that here.)

In-person visits are a big deal, both during the vetting process and during the early stages of production. When working to solve a manufacturing issue, it’s helpful to be able to put your engineers and the manufacturer’s own team of experts in the same room, especially if the trip to the plant doesn’t involve multipe time zones and a 14-hour flight.

Likewise, visiting a manufacturer’s facility is a great way to see if the company practices what they preach. Do they have an experienced workforce that is committed to quality? Are they organized? Is the production line what you need?

How Stable Is Your Company? What Is Your Financial Health?

Asking questions about a company’s stability and financial health is a good idea. It’s not unheard of for manufacturers to overextend themselves and run into trouble, especially if the manufacturer lacks experience. A manufacturer that’s been around for decades, for example, has been through good times and bad.

Financial health – a/k/a profitability – is critical to finding a good contract manufacturer for the long term. Profitable manufacturers are able to make constant investments in new equipment, new processes, and upgrades. Manufacturers who aren’t profitable might offer great pricing in the short run, but might not survive in the long run. A contract manufacturer that suddenly goes bankrupt is – at best – a major headache.

Who Will Have Access To My Intellectual Property, And How Is It Safeguarded?

IP manufacturing protectionsFor some companies, intellectual property (IP) is a low-level concern. For others, IP is very important. Whichever side you’re on, ask questions about IP safeguards. Manufacturers that have experience working with top-tier companies will usually have good practices for managing IP.

Manufacturers that lack experience, on the other hand, might not have good answers to your IP questions. (Get more info about IP in this Intran blog post.)

What Engineering Resources Do You Have Available?

Many companies contracting a manufacturer have little need for outsourced engineering. Still, it’s a good idea to ask a manufacturer about the kinds of engineering resources they have available. Answers to this question can help you learn about the manufacturer’s overall capabilities.

What’s more, a manufacturer with engineering abilities is usually a better long-term production partner.

What Are Your Quality Programs?

ISO certifications are important (like this one, for instance), but so are less formal programs like weekly Kaizen meetings or worker skills training.

Ask for examples of quality problems that were overcome at the manufacturing level. These examples can give insight into a manufacturer’s quality commitment and culture. Finally, documentation for these processes should be available upon request.

What Happens When Materials Are Delayed?

Every manufacturer should have contingency plans for material delivery delays. Ask for examples of recent delays and how they were handled.

While you’re at it, be sure to ask the manufacturer how they verify the quality and specs of their raw/base materials. Every manufacturer should have a documented process for testing raw materials upon delivery.

Last, But Not Least, Ask The Obvious Questions

Don’t forget to ask the obvious questions:

  • What are payment terms – net 30, 60, or 90? Are there any discounts available for shorter payment terms?
  • What is the total cost including all fees – production, delivery, fuel surcharges, etc.?
  • What might cause any of these costs to increase?
  • Can we specify the base/raw material specs in our contract? (More about contracts here.)
  • What is your on-time delivery rate?
  • What is your defect rate PPM?

With nearly 50 years of manufacturing experience, we’re proud to say that Intran will have the right answers to your questions. Contact us to learn more about our capabilities.