NAFTA Supply Chains: Perils and Prospects Arnold Maltz, Ph. D. W. P. Carey School of Business Arizona State University

Supply Chain Issues (Lessard 2013) • CEOs – Things that vary (prices, demand, labor issues) – Regimes that change (Customs, regulations, environmental concerns)

• Supply chain managers – Things that “break” (delays, quality problems, disruptions)

Nafta Mexico Trade Current Situation • Major ports of entry – Laredo – Otay Mesa – El Paso

• The process – Multiple intermediaries – Some preclearance – Rules of Origin still a concern

A Snapshot of the Crossing Process

Commercial Bridge Traffic (El Paso)

Tracked Travel Times (Otay Mesa)

Summary • Complex crossing process • Inconsistent estimates from CBP • Either – Close monitoring and control

• And/or – “Just-In-Case” inventory planning