Strengthen the supply chain means a great challenge for the state of Guanajuato, as it means to strength the professionalization system in companies for it be aware that they have to be up to the market demands to compete, thus was announced by experts in economic issues and of investment in the state, who gave a wide scenario of the challenges the supply has in the state of Guanajuato and the area.
As Daniel Tavares Romero, president of the National Association of industrial Suppliers (APIMEX, by its Spanish initials) Mexican supply challenges will set not only challenges for industrials or foreign companies, but also must take this reflection towards which kind of city, municipality and state is required, so that the environment facilitates the development of the Mexican supply chain.
He mentioned that the business culture should change aiming to modify old habits and face the change, as today companies are competing not only locally but internationally.
He said that APIMEX fulfills different business meetings with the objective of each time more local companies can be suppliers of transnational companies.
“We have business meetings, where buyers and potential suppliers are attracted for them to have B2B meetings. We seek to approach opportunities to members and prepare them to be more professional suppliers.”
He explained that the companies that bring their suppliers is because they seek to start the plant with trustful members, but later they have the intention of finding local suppliers to reduce costs and facilitate logistics.
“The companies bring their own reliable suppliers but little by little they seek for local supply, but the government and chambers have worried about training members and develop them.”
Asael Colunga, diversification director of APIMEX, said that currently from the 230 members of the Association, 111 companies are already making efforts to diversify and introduce to several sectors.
He mentioned that companies seek its members to implement the standardization, optimization and technification on their businesses with the objective of being more productive.
“It is important to work on this; we want to be more productive because today we are not only competing with companies nearby, but that today it is with all those that produce the same product but in other parts of the world. That is why we help members with trainings and certification obtaining.”
GUANAJUATO AS BUSINESS PLATFORM
Likewise, Guillermo Romero Pacheco, secretary of Sustainable Economic Development from the State of Guanajuato, said that in a ratio of 400 km – which include states as Queretaro, Guadalajara, Estado de Mexico, Michoacan and Guanajuato – are concentrated 80 % of the Mexican market, 70 % of the industrial establishments are located, 70 % of the international market and 60 % of the population.
“Now that central corridor initiative exists, it is important to maintain or not to forget that there is an excellent potential in this area to encourage the supply at national and international level, this calls the attention because the economic value is very strong in this area.”
He noted that this area conformation regionally is a great jump for the industry, as it would be access to a business network, taking advantage of that Guanajuato is located in the 4th place of economic growth nationally, registering a 6 % of increase in exports until September 2017 and it is anticipated a closure with 7 % more than 2016.
In the automotive issue in the entire Bajio and the western center area, mentioned that more emphasis is made in supply, given that up to the moment there are 11 assemblers, with a production of 1 million and a half of light vehicles and the goal is to reach the 3 million and achieve producing 56 % of the national total, therefore more opening is required from the local companies for them to be included in the supply chain.
Until now 420 Companies from this sector are installed in the state and more than 2 thousand companies articulated to this sector, generating a total of 93,600 jobs and generating 16.9 % of the GDP. In addition from the projection of building 26 industrial parks by the end of this administration.
He emphasized that the state of Guanajuato have three challenges to be complied as part of the arrival of companies and the development of the supply as: investment attraction, this is, having the logistics and industrial infrastructure, provide specialized training and of energy sufficiency. Another challenge is the development of SMEs, support them to be integrated to the local supply, achieving to include those not integrated to formality, professionalization and seek the approach of the market according to the demand. The third challenge is the labor formation directed to decrease personnel turnover, a greater offer of technical profiles, as well as a greater offer of day care centers and support services for employees.
CHALLENGES FOR BAJIO REGION SUPPLIERS
Luis Aguirre Lang, president of Index Occidente, said that once this boom in the automotive sector is achieved, the production capacity resulted insufficient in front of the current demand and globally projected by the industrial processes.
“The industrial sector is doing a good reconversion work to capitalize the opportunity of the suppliers’ attraction for an important industrial sector such as the auto-parts automotive and that is connected to an economic corridor of great development and important growth in the last years.”
He noted that there are lags in aspects related with the planning and control of the processes and the quality assurance, as well as an absence of certifications in SMEs, what limits the multinational companies’ capacity to expand their national supply base.
The technological lags in machinery as well as in equipment addressed to the manufacture of parts and components, as well as in metrology and automation equipment which hinder its productivity.
He assured that the Productive Chaining installed in March 2016, helps to focus on linking the supply and demand of strategic sectors.
He explained that through this axis goals have been settled such as taking advantage of the capacities that provide sectorial and regional productive diversity to strengthen the production chains with inclusion in small and medium companies to great operations of foreign trade, aimed to Mexican suppliers be taken into account when an international company decides installing in the country.
“The main objective of this system is to detect the industry needs and identify the opportunities existing in favor of local supply, the entire Mexican private sector is participating together with the areas of the public sector that have to do with the development of the economic model as the Ministry of Economy, Ministry of Finance, ProMexico and banking groups for the finance issue.”
He added that this model consists of two important aspects such as: the strengthening of the offer, that is, the companies already established in Mexico and integrated into the supply chain, those that are not included and those not established in Mexico. The other important aspect is the strengthening of demand, that is, the tractors established in Mexico that demand inputs and have a program of suppliers already established, but also Mexican companies that already export and demand products from companies without an IMMEX program and the area of government purchases, because they also import many of the products that are required in the country.
ADVICES FOR BEING A SUPPLIER COMPANY
It is necessary to generate a practical operation model regionally and not only in Guanajuato but with all the states integrated in the industrial corridor, but before the arrival of tractor companies of the automotive sector, it is necessary to identify the negotiable demand from the executives of these companies to buy Guanajuato companies and evaluate the supply of products and services to be able to adjust them to market demands, as it was announced by Cesar Gutierrez Elizarraras, president of Index Guanajuato.
“Through business meeting schemes where you can connect with national and international suppliers, the development of incentives and certifications for the supply chain is promoted and with this you can support companies with performance problems to remain as suppliers of global companies.”
He commented that one of the important points to enter the supply chain is that they have credibility.
“Many of the companies no longer ask only for certifications, they also ask for a job on time and of quality. The important thing is that they have financing that supports investments, projects and that is socially responsible.”
He stressed that another of the most important aspects is that businesses have the technology, as well as the implementation of the ERP system, which integrates certain operations that have to do with production, logistics, inventory, shipping and accounting.
“If we do not have control, you cannot give sustainability in the company and it will not be profitable, it is necessary to invest in technology and in the development of the company to be competitive.”
He asserted that, according to data provided by SDES and SE at the federal level, the industry requires component manufacturers such as sensors, electrical parts, as well as in the production of steel, aluminum or carbon fiber materials, so that Mexican companies have to prepare to be able to join the value chains.