Why a Shelter? Why IVEMSA?


1. What are the options for stating operations in Mexico? Which one is the fastest alternative fulfilling all Mexican laws?

There are three main ways for a company to operate in a manufacturing location in Mexico: Contract manufacturing, Shelter (Outsourcing Management), and Stand Alone.

Contract manufacturing is preferable for operations that require limited man hours, experience cycle demand, and do not require direct control over production quality.

Stand Alone subsidiaries may be the best alternative for organizations with high control requirements.

The Shelter or Outsourcing Management is the option of choice for companies that are seeking to start operations rapidly in order to best leverage their own competencies by outsourcing non-core management functions to a trusted partner.

2. What kinds of companies are best suited for using a Shelter or Outsourcing Management Solutions?

3. How long does it take to start an operation under a Shelter?

4. How does a Shelter work?

IVEMSA provides the following services:

Our clients are responsible of everything related to production and quality. For instance, supply the machinery and equipment, raw material (direct and indirect), product specifications, engineering, technical support, etc.

All this process works on a pass through cost open book policy without a markup. Some of the typical expenses are salaries and benefits, facility lease, utilities such as water, electricity, natural gas, and telecom services, as well as Mexican purchases.

5. How does a Shelter bill to its clients?

The Shelter charges its customers for costs incurred in Mexico, such as payroll, utilities, facilities, customs fees, transportation costs, and Mexican purchases, in a pass through open book basis without mark up; and the Shelter charges a fee.

6. Why should I choose IVEMSA's Outsourcing Management Solutions if I have the experience of running a company in my country by myself? What are IVEMSA's key strengths?

Having an operation abroad implies the understanding of different rules, new laws and regulations (corporate, labor, environmental, legal, civil, trade and customs affairs, etc.), cultural differences, logistics, and even new political environments that may affect your company. Finding the correct and professional business partner that may support your offshore operations is crucial. IVEMSA understand all those issues and it is the most experience and reliable option.

In addition, IVEMSA's expertise contacts, relations and lobbying capacities (local, regional and national), consolidated through almost 30 years of experience in helping companies to soft-land their operations in Mexico, allow a smooth ride when settling your maquila operation.

7. What are the Solutions IVEMSA offers and what are the differences among them?

Site selection: a comparative study between regions, states or cities within Mexico to determine where is the best option for your project.

Shelter: Your Company works under IVEMSA'S name and working permits. IVEMSA provides crucial administrative services that in turn give you the freedom to focus your time entirely to your operations. The Shelter option would help you to reduce the learning curve, and minimized the liabilities and administrative risk. It's the fastest way to start operations in Mexico.

Entity: Your Company works under your own Mexican entity and IVEMSA outsource all the management service. Since the beginning IVEMSA assists you, first to incorporate your entity in Mexico, then to operate the management services for you, and comply with all tax, labor and corporate registrations, IMMEX program (Maquiladora program), and any other legal aspect your operation may required.

BPO: IVEMSA can offer individual outsourcing management services to your company whether it's located in Mexico or the U.S. This solution would help you to eliminate time consuming work load, reduce administrative costs and increase flexibility for your organization.

8. What are my responsibilities under any of IVEMSA's Solutions?

IVEMSA's clients perform engineering, design, materials management, manufacturing and quality functions while IVEMSA provides comprehensive outsourced manufacturing support and administrative management services that allows manufacturers to operate their own plants in Mexico at reduced expense and risk, as well as full focus on their core manufacturing processes.