TNT in Saltillo Mexico

TNT recently developed a state-of-the-art operation for wheel sub-assembly for one of these plants in Saltillo, Mexico. Using a multimillion-dollar piece of equipment, TNT workers mount tires on wheels, inflate and balance them, and then sequence them into the carmakers’ assembly lines in another part of town.
TNT brings more than half of the parts going to the plants from within Mexico. This is one area that has changed in recent years. The portion of parts that are supplied domestically within Mexico has steadily been on the rise.
"The supply base in Mexico now is growing very quickly," said John Hollett, director of business development for TNT Logistics North America. "The Big Three car builders used to keep their historical supply and supplier base in the United States and trucked the parts to Mexico. When they moved operations to Mexico, they found out that the operating capabilities in Mexico far exceeded their expectations."
According to Hollett, the expansion of suppliers within Mexico wouldnít be so significant if they weren’t providing high-quality manufacturing operations to their customers. "The initial perception was that the young manufacturing base in Mexico would come with a lower standard of quality than in the U.S.," says Hollett, who set up TNT’s wheel plants in Saltillo. "But weíve found that the quality of suppliers in Mexico is equal to and sometimes better than U.S.-based suppliers. And this has fueled growth down there more than anything else."
This means that TNT and other logistics providers can develop scheduled delivery transportation programs in Mexico much like in the states. "We’re developing a domestic pickup-and-sequencing mentality within Mexico," says Hollett. "This will equate to an improved delivery network and lower logistics cost over time."
In addition, TNT has found that the quality of its Mexican work force exceeded its expectations, too. "The first perception you have of going to Mexico is all those built-in cultural biases that have existed for years," he adds. "But we were pleased with the work ethic of the people and their desire to become more skilled. There is a desire to learn, and they have a true dedication to our customers and to the operation, even if it involves staying late to work through a backlog. And our turnover rate is steadily declining as well."


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