Previo en Origen (PEO) Case Study

Importing products to Mexico presents numerous challenges, primarily due to complex customs regulations that often lead to delays and increased costs for importers of all sizes. For global retailers, these challenges are magnified by the sheer volume of goods and the necessity for timely deliveries to meet market demands.

This case study showcases how QIMA’s Previo en Origen (PEO) Inspection (also known as a Pre-Customs Clearance Inspection) helped one of the world's largest retailers streamline their import process, reduce costs, and ensure timely delivery of goods to the Mexican market. By conducting thorough inspections at the point of origin, QIMA provided the retailer with complete visibility and control over their supply chain, resulting in significant improvements in efficiency and reliability.

Case Study: PEO Inspection Improves Efficiency and Reduces Costs for Global Retailer

The Customer

This client is one of the largest consumer goods retailers in the world, with extensive operations in both Mexico and globally. Today, this client imports more than 15,000 containers to Mexico annually, primarily from Asia and Europe. They are QIMA’s first PEO Inspection client, and we continue to work with them today.

Challenge

The retail industry’s inherent seasonality means that all activities, including purchases, offers, and promotions, are planned months in advance. Timely product availability on shelves is crucial, as marketing materials such as brochures and point-of-sale displays are prepared well ahead of time. Prior to partnering with QIMA, the retailer imported products months before they were needed to mitigate supply chain issues, which were typically identified only once the containers arrived in Mexico.

Given the volume of imports and the diverse supplier base across Asia, maintaining complete visibility and control was nearly impossible. The retailer faced numerous issues, including:

• Problems with merchandise labeling and engraving
• Non-compliance with customs regulations and standards
• Discrepancies in quantities
• Incorrectly loaded products not following the loading plan
• Damaged, missing, or undeclared merchandise

These issues caused significant delays in product release, resulting in customs fines, penalties, and high storage costs in Mexico.

Solution

In response to these challenges, we implemented a PEO Inspection program with our client. Based on our previous experience with reviewing shipments in customs warehouses, we worked with the client to implement the same process - but instead of carrying it out once the containers arrived in Mexico, the process took place at the point of origin.

We developed an operational flow that guarantees the Mexican customs requirements are followed, anywhere in the world. This involved:

• Communicating with the client's suppliers and sharing process details
• Specifying required actions and support needed to avoid shipment delays

Direct coordination with suppliers greatly enhanced visibility into the client’s supply chain. We provided detailed information on products, labeling, quantities, and supplier operations. Our regulatory team reviewed reports, including photographs, to detect potential issues, allowing the client to address problems before the goods reached Mexican ports.

Impact

Providing total visibility and crucial information enabled the client to detect and resolve issues proactively. The documentation was in order, eliminating the need to open containers for inspection. As a result, container processing time at Mexican customs was significantly reduced.

In summary, our client benefitted from:

• Reduced clearance times: By identifying and resolving issues before arrival, inspections minimized the need to open containers at Mexican customs, leading to faster clearance. The PEO Inspection ensures the release of merchandise at Mexican ports within 24 to 48 hours.
• Improved supply chain visibility: Inspections provided greater transparency into supplier practices and product details, allowing for proactive problem-solving.
• Reduced costs: Faster clearance times lowered storage costs and minimized the risk of fines and penalties.
• Enhanced customer satisfaction: Timely deliveries ensured products reached store shelves on schedule, improving customer satisfaction.

The successful implementation – and excellent results – of our PEO Inspections have fostered a long-term relationship with our client that continues to thrive today.

Streamline Your Imports to Mexico with QIMA

Choosing QIMA as your partner in Mexican customs clearance ensures seamless, efficient, and reliable operations. Our PEO inspection services offer unparalleled visibility and control, reducing customs delays and associated costs. With our expertise, your products reach the shelves on time, keeping your business operations smooth and your customers satisfied.

Let QIMA's proven strategies and dedicated support elevate your supply chain efficiency and reliability. Contact us today to learn more or book an inspection.

More Resources

• Navigating Customs in Mexico: The Previo en Origen (Pre-Customs Clearance Inspection) Process - Learn about the full PEO process, from planning your site visit to the release of goods in Mexico.