Tariffs, rising labor costs and COVID 19 are factors accelerating a shift to manufacturing in southeast Asia and Mexico. Texas-based Supply Chain Resource Group recently announced the opening of a new service center in Bangkok, while also expanding its supply chain services in Hanoi and Guadalajara to support increased demand for manufacturing operations support.
SCRG was formerly known as Riverwood Solutions. The company provides managed supply chain services and operations consulting to OEM and brand-owning clients. The new Bangkok service center will help customers diversify and manage their Thailand manufacturing supply bases.
“Many U.S. OEMs had been developing a manufacturing supply base outside of mainland China due to cost concerns. But with the U.S.-China tariffs, and now supply chain disruptions from the Covid-19 outbreak, there is now a scramble for a second source. Some of our clients have opted for Thailand, Vietnam or Mexico as their China alternatives,” noted Julian Searle, Vice President of Business Development at SCRG. “Our supply chain teams have provided manufacturing and supply chain services in Asia for a decade, and Bangkok was a natural next center location after Shenzhen, Suzhou and Hanoi.”
SCRG is also enhancing its supply chain management services infrastructure in Guadalajara to support near-shore manufacturing operations. Manufacturing costs in Mexico, on a constant US$ basis, are near parity with manufacturing costs in China. This has spurred considerable incremental demand for manufacturing and supply chain solutions in Mexico from both European and U.S. brand owners. Juan Francisco Fregoso, SCRG Managing Director of Mexico, said the demand for manufacturing in Mexico is higher than it’s been for 10 years. SCRG provides consulting services for supplier selection, contract negotiations, green field evaluation, and ongoing supplier management and optimizes OEMs’ supply chain performance and operations while maximizing the value of manufacturing and supply chain relationships.
SCRG’s HOST℠ (Hybrid Outsourced Services Team) model provides local resources to OEMs. SCRG designs, optimizes, implements, and manages global supply chains for both OEMs and startups.
Source: Supply Chain Resources Group