According to recent reports, suppliers in Mexico are receiving a significantly higher number of procurement bid requests from American manufacturers. In 2021, Mexican-based suppliers received six times as many requests for bids by large American manufacturers for chemical supplies, construction materials and other goods as they did in 2020, according to procurement software firm Jaggaer – as reported by The Wall Street Journal. The report also indicated that the number of suppliers in China that received procurement bids declined by 9% in 2021. The data suggests Mexican suppliers are gaining ground as manufacturers adjust their supply chains to a more resilient structure to combat the current global disruption.
Two primary goals for resetting supply chain strategies are (a) to add supplier locations and (b) to bring some of the production closer to the American manufacturers end users. This strategy is designed to not only build resilience but also supply chain reliability. Manufacturers that previously had strategic relationships with one or two suppliers that produced the same item or material are now expanding their relationship to three or four different suppliers that are located closer to the buyer and its customers. The trend indicates manufacturers’ commitment to make sure their products are always available for the consumer.
Jaggaer’s report also tracked a 514% increase from 2020 to 2021 in Mexican suppliers receiving bids from its big U.S. buyers and a 155% increase in Latin American suppliers receiving bids over the same period. In comparison, manufacturers requested goods from 26% fewer suppliers in the Asia-Pacific region.
This report reinforces the need for manufacturers of any size to actively seek solutions in building a more resilient and redundant supply chain. To learn more about Shippers Solutions’ innovative offerings please visit www.neverrunout.com.