Client overview
A leading global manufacturer of high-pressure die-cast aluminum components for the automotive industry, with primary production facilities in China. The company supplies critical parts such as transmission cases, structural components and engine brackets to major North American OEMs and Tier 1 suppliers.
Initial challenges
Despite strong manufacturing capabilities in China, the company faced significant obstacles in serving its Mexican and North American customers effectively.
Time zone differences. A 12–14 hour gap between China and the US/Mexico resulted in delayed responses to quality complaints, often taking 24–48 hours or more for initial acknowledgment and action.
Communication and cultural barriers. Language differences and varying business practices led to misunderstandings in technical reports, 8D problem-solving processes and customer expectations.
Geographic distance. Coordinating containment actions, on-site sorting, resident engineering support or rapid response to potential recalls required expensive and time-consuming travel from Asia.
Logistics and responsiveness. Delays in implementing controlled shipping levels (CS1/CS2), GP12 safe launch containment, rework or JIT sequencing impacted customer scorecards and risked line stoppages at OEM plants in Mexico and the US.
Overall impact. Higher costs from expedited freight, travel and penalties, reduced customer satisfaction and strained relationships with key accounts.
Solution implemented
Ridys Group, based in San Luis Potosí, Mexico, was engaged as the client’s dedicated nearshore representative in North America. Leveraging its IATF 16949 expertise, ISO 9001:2015 certifications and over 18 years of automotive quality experience, Ridys provided a comprehensive extension of the supplier’s team.
Resident quality engineers. Bilingual engineers available for immediate deployment to customer sites or virtual support, with coordination capabilities in English, Spanish and Chinese.
Customer service desk. Centralized handling of quality complaints, formal 8D responses, recall coordination and containment actions including GP12 and CS1/CS2.
On-site quality services. Rapid deployment for sorting, inspection, rework and third-party containment at customer facilities in Mexico and the southern US.
Logistics coordination. Support for secure transportation, consignment stock management and sequenced JIT deliveries leveraging Mexico’s strategic proximity to North American assembly plants.
Administrative follow-up. Monitoring of product deliveries, invoicing accuracy and payment collection to ensure smooth operations.
Key advantages delivered
Time zone alignment. Mexico’s nearshore location, with only a 1–3 hour difference from US time zones, enabled same-day responses and real-time collaboration compared to next-day delays from China.
Seamless communication. A fully bilingual team with deep understanding of North American automotive culture and standards such as PPAP, APQP and PSA.
Proximity and speed. Physical response within hours or same-day travel across Mexico and North America, versus days or weeks from Asia, dramatically reducing downtime costs.
Professional expertise. Certified processes and experienced personnel ensuring compliance and high-quality execution.
Quantifiable results
67% reduction in average response time to quality complaints, from 5–7 days to under 24 hours.
54% decrease in containment and rework costs due to faster on-site resolution and prevention of escalations.
35% improvement in on-time delivery and JIT compliance, contributing to stronger supplier scorecards.
Elimination of recall-related line stoppages during multiple new model launches.
Estimated annual savings of over USD $380,000 in travel, expedited shipping, penalties and lost productivity.
Improved customer satisfaction ratings from key OEMs and stronger long-term partnerships.
Conclusion
This partnership transformed the client’s supply chain challenges into a competitive advantage. Ridys Group’s strategic location and specialized services in Mexico served as an effective bridge for a global supplier targeting the North American automotive market.