Examining Key Factors of Supply Chain Optimization: The Maquiladora Example

Abstract

The faltering Mexican manufacturing sector, specifically the Maquiladora industry, is critically important for U.S. interests for a variety of reasons. From an economic standpoint, Maquiladoras are important because they transform primarily U.S. made components and raw materials into finished goods (Whalen, 2001). Perhaps more importantly, Maquiladoras manufacture products for domestic consumption to a burgeoning middle class in Mexico and act as a bridge to markets in Latin America (Bowersox and Calantone, 1998; pg. 90). From a governmental standpoint, the Maquiladoras promote stabilization of the U.S. southern border and economic growth along both sides of that border.