Mitsubishi Electric Offers Opportunities to National Suppliers

Due to new trends and regulations, Mitsubishi Electric is looking for suppliers located in Mexico. "The increase in taxes on steel, the rise in certain parts of Asia where prices have gone up by as much as 50%, forces us to seek national suppliers. This year, we started with an increase between 15% and 25%, and in some cases, we are now seeing increases up to 50%," said Jesús Herrera García, Director of Mitsubishi Electric in San Juan del Río, Querétaro.

He mentioned that one of the advantages of working with national suppliers is the reduction of costs.

"Part of our goal is to increase [national sourcing], because by increasing this probability, we also support our suppliers. We are creating strategies with them to help reduce these operational costs," he stated.

Herrera indicated that the development of suppliers is also being promoted to meet their clients' specifications, which generates collaborative work between the company, government, institutions, and laboratories to achieve these equivalencies and establish the use of local parts.

To find suppliers, Herrera pointed out that the company participates in events related to business meetings or receives commercial proposals directly at the plants and via email.

"We are open to having suppliers approach us directly at the plant or reach out to our purchasing team via email. The more offers we receive, the better," he affirmed.

The executive highlighted that Mitsubishi Electric is currently seeking steel and electrical components such as connectors and cables.

"Mainly, we are looking for certain types of steel that meet specific requirements and equivalencies we need to establish. Other items include electronic components such as connectors and cables," explained Herrera.

Quality Suppliers Required

To supply Mitsubishi Electric, the director emphasized that national suppliers must adhere to standards like ISO and UL.

"These are international standards required by our clients. If the supplier already meets these standards, that's ideal. However, if they don't but are reliable and have the necessary characteristics and capabilities, we assist them in fulfilling this certification process," he mentioned.

He underscored that the Japanese company's policy is to have more than one supplier for certain products, even as a support measure to avoid overloading a single supplier. "In the end, we try not to be the only company relying on a single supplier," said Herrera.

Supplier Selection

Regarding the selection process for national suppliers, the relevant department conducts a comparative analysis based on delivery time, quality, and price. The director clarified that it doesn't necessarily have to be a large company, but rather a sustainable one.

"We provide the quality specifications, which must be met. We conduct site visits, evaluate their installed capacity, and assess their logistical capacity if needed, depending on the product. We also evaluate their organizational, financial, and monetary capabilities," the executive stated.