Transforming Supply Chains in Mexico: The Impact of IMMEX and VMI Models
The introduction of the IMMEX (Manufacturing, Maquiladora, and Export Services) and Vendor Managed Inventory (VMI) models has revolutionized supply chain management in Mexico. These programs address many of the inefficiencies and challenges that businesses faced before their implementation. Here's a look at the profound changes these models have brought to the industry. Before IMMEX and VMI Models Before the adoption of the IMMEX and VMI models, companies faced numerous challenges that hindered their operational efficiency and profitability. Some of these key issues included: 1. Increased Inventory Costs Companies had to maintain large inventory levels to meet production demands, leading to increased holding costs and tied-up capital. 2. Longer Lead Times The time required to import raw materials and components often led to longer lead times, delaying production and impacting delivery schedules. 3. Reduced Flexibility Inflexible supply chains made it difficult for businesses
