Mexico Shelter Operations Management

When you manufacture in Mexico under The MFI Shelter operations management or "Shelter Service" program, it means you will receive  manufacturing support on your Mexican operation on management areas (Legal, HR, Accounting, Payroll, Import & Export, Facilities, Environmental and MRO Procurement). It also means that you:

• Have no direct legal presence in Mexico

• Outsource employer responsibilities for your Mexican workforce

• Concentrate on the core functions that affect the growth of your business

Definition: Shelter Operations Management or "Shelter Services", means Manufacturing support for companies that want to establish their own operation in Mexico.

There are four common methods by which foreign companies setup manufacturing operations in Mexico:

• Subcontracting
• Joint Venture
• Wholly Owned Subsidiary
• Shelter

A Shelter operations management program, allows firms to fully control their own production and quality, to benefit from the experience of an organization that knows the local market, and eliminates the need to make sizeable investments in physical and human assets is the manufacturing shelter. Working through a shelter service provider, foreign-based manufacturers are able to initiate operations quickly without actually establishing a legal presence in the country. They are in Mexico as a department of their chosen service provider. In essence, firms opting to use this vehicle are “sheltered” from many of the risks and liabilities that normally affect firms that choose to incorporate directly. Under the typical shelter arrangement, manufacturers send raw materials and supervisory personnel to train and manage workers, while the shelter company performs the tasks and functions that are not “core” to the manufacturing process. The manufacturer controls those areas that affect profitability and sustained growth. Shelter companies typically offer their clients services in some or all of the following areas: human resources, payroll and benefits administration, logistics, plant and park management, procurement, environmental and customs compliance, plant and park management, and real estate leasing. (Reference by wikipedia.org)

This is a value-added outsourcing arrangement in that it gives manufacturers a means by which to greater leverage core competencies and intellectual assets. An organization that does this becomes more nimble, and experiences faster and higher levels of innovation. Additionally this arrangement is attractive to firms seeking to pursue strategies of leveraged growth. As a manufacturer expands under a shelter arrangement, he absorbs only a portion of the additional overhead that that an expansion of activities requires. (Reference by wikipedia.org)

MFI's Shelter Operations Management Solution "Shelter Service", provides the legal and administrative platform, space and labor force tailored to your Mexico needs:

Legal Structure to operate in Mexico
Human Resources Management
Accounting and Payroll Administration
Import/ Export and Customs Management
Facilities & Environmental Management
MRO Purchasing Services

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To start manufacturing in Mexico, contact us