DFAC Dongfeng MX Chooses National Suppliers

DFAC Dongfeng México began operating conceptually last year, laying the foundation for its supply chain and warehousing in Mexico, where they require long-term supplier relationships.

Daniel Razo, Operations and Supply Chain Director of the Chinese company, indicated that with this growth plan, DFAC Dongfeng decided to open a parts center in the state of Querétaro. This center will allow them to deliver parts within 24 to 48 hours without incurring high costs for this service.

He mentioned that products are transported from China, primarily to the Port of Lázaro Cárdenas, which he considered a commercial development hub with a competitive advantage in terms of supply chain costs.

"Why Querétaro? Why Lázaro Cárdenas? Because you need to leverage a series of suppliers who will provide you with products and services to support your commercialization; suppliers that will allow you to leverage your operation," he said.

Razo noted that in February of this year, DFAC Dongfeng's yard in Mexico began receiving vehicles, while in March, the warehouse in Querétaro started receiving parts.

"The vehicles will begin to be distributed from Lázaro Cárdenas nationwide. In the first phase, they will reach 20 branches, and by the end of the year, there should be about 40 located throughout the country," he emphasized.

Looking for Suppliers

He added that the Chinese company requires national suppliers in three phases: transportation and distribution or logistics providers; last-mile delivery; and, finally, suppliers for the installation of an assembly plant.

"In this first phase, a solid supply chain of storage and cross-docking is needed (...), in the final phase of the project, which is planned for the installation of an assembly plant in Mexico, although a large part of the supplies will come from China, the development of certain products is necessary," he said.

For the operation of a plant in Mexico, the Operations Director elaborated that they will need wear-and-tear parts or continuous maintenance supplies, battery suppliers, tire suppliers, starter systems, oil filters, and brake components such as pads, fluids, etc.

"These will support the project indirectly, but we are talking about approximately a year and a half to two years, as it is a process that needs to be developed," he noted.

Companies interested in supplying DFAC Dongfeng must have quality certifications, unit tracking systems, and make significant sustainability efforts.

The supply chain leader explained that Mexico requires a series of highly qualified suppliers who need to improve their facilities, perspectives, with trained personnel, sustainability, and technological support.