What do I need to know about Shelter Programs

 

What is a Shelter Program?

  • A Shelter Program is a contractual relationship that gives a company the ability of establishing it's own operation in Mexico the fastest and most economical way possible.

    The Shelter provider is a company that is already well established, legal and working identity. It is a mature, efficient and successful identity with all the "infrastructure" and people in place. The provider takes in a client under its "umbrella" , gets it started quickly without the hassles associated in starting an operation.

    The client basically becomes a department of the Shelter, taking advantage of the infrastructure and talent already in place. The Shelter provides support and "protection" to its clients during the length of the contract, treating the client as its own .

    After the terms of the contract are up, usually 2-3 years. The client is well prepared to go on its own with the full assistance of the Shelter provider.

    A Shelter Program allows a company to quickly operate as a mature, efficient and successful business without having had to spend the years of time and effort to accomplish the same level of proficiency it would have had on its own.

Why do I need to consider a Shelter Program?

  • If you have the desire to take advantages of the low cost of manufacturing in Mexico and would like to get started quickly with little or no hassles.

    If you have an operation big enough to cover the cost of the overhead structure required or unsure or not knowledgeable as to how to get started in Mexico.

    If you need to maintain 100% control over your Materials, Quality, and Production processes.

    If sub-contracting is not desirable and if your customer will not let you have a sub-contractor.

    If your Customer demands you reduce your cost and or kindly suggest you to consider Mexico.

    And if you desire to keep good control of your costs.

What does a Shelter Program cost and how am I charged?

  • The Shelter Program has a variable rate that is connected to the “worked” hours. This rate is reduced as your operation grows. This represents the gross sales revenue for Javid, LLC and supports all the functions you will see explained in more detail later in this information.

    Javid, LLC uses the payroll system to determine and track the hours worked and then invoices on a weekly basis its Shelter Fee.

    All other costs that your company incurs are invoiced to you weekly on an “actual cost” basis. Those costs include, but are not limited to, rent, utilities, Mexico procured supplies plus any associated sales, payroll or other taxes as dictated by Mexico law.

    Each week a Pre-Invoice is made with the total of all the expenses and presented to the client's manager. Copies of payrolls and all invoices are attached for the client to review and approve. Once the Pre-Invoice is approved an invoice is generated and sent to the client with all the necessary back-up.

What does the Shelter Program provide?

  • Services provided in our Shelter Program are:
    Human Resource Administration
    Recruiting, Screening and Testing of your entire workforce to insure they meet your requirements.
    Enrollment and administration of your employee’s medical, disability and retirement insurance plans through the Mexico Social Security system (IMSS).
    Wage and Benefit Administration including guidance on the structure of incentives, bonuses and perks.
    Interpretation and Administration of the legal aspects of Mexican Labor laws.
    Employee development as you determine and employee recognition as you prefer.

    U.S. Customs Coordination
    Assistance in classification of your products for U.S. Customs to insure the lowest possible duty rate, if any, for your products.
    Assistance in the preparation of documentation to insure legal compliance.
    Serve as your interface with the U.S. Customs Brokerage and the U.S. Customs Service.
    Use certified U.S. Customs advisors to audit processes.

    Mexico Customs Coordination
    Assistance in the classification of your components with Mexico Customs. Submission of your components under the new PROSEC (Sectorial Program) to achieve the lowest duty rate for your non-NAFTA components. This in many cases achieves an “exempt” status for taxation purposes.
    Coordination and execution of any “transfers” of materials between other Mexico manufacturing facilities (maquiladoras) as applicable to support sales or subcontracting of your products.
    Serve as your interface with the Mexico Customs Broker and Mexico Customs.

    Facilitation of Space in Mexico
    Locate and contract, on your behalf and cost, the manufacturing and warehouse space needed in Mexico to support your operation. Deposits may be required.
    Assist in the coordination of the subcontractors needed to install your equipment and any needed changes and/or leasehold improvements to your space.
    Building Maintenance (technical labor is supplied and materials are handled as a pass-through cost).

    Facilitation of Space in the United States
    Southbound warehouse services are provided at the Javid U.S. warehouse location on an in-out basis. This provides a small amount of space to unload and prepare your materials for importation to Mexico.
    Northbound warehouse services are provided at the Javid U.S. warehouse location. This also is done on an in-out basis, unless other services are required. Distribution services can be provided at an additional cost for space and labor required.
    Coordination of all major freight contractors for your incoming and outgoing goods (Roadway, Yellow, CF, FedEx, UPS and many others).
    Additional space can be located, either warehouse or office, in the U.S. as your needs require.

    Logistics Coordination
    Coordination of your material and equipment movements from receipt at our U.S. warehouse to your facility in Mexico and back again.
    Constant monitoring of the freight company and brokerage houses activities while your material and equipment is being transported.

    Legal Compliance for your operation

    Javid’s experienced infrastructure provides the necessary guidance and administration to insure compliance to all the legal requirements in Mexico. These include, but are not limited to, the following:
    SECODAM (administers Mexico customs)
    HACIENDA (Mexico’s IRS)
    IMSS (Mexico’s social security system)
    SEMARNAP/SEDUE (Mexico’s EPA)
    Seguridad y Higiene (Mexico’s OSHA)
    Payroll Tax Administration
    Legal Benefit Administration

    Permits

    Acquisition of all the necessary permits for your materials and equipment.
    Coordination with the Mexico Customs brokerage on the status of your permits and the constantly updated inventory levels of your materials and equipment.
    Obtain work permits for any non-Mexican personnel that work at your operation in Mexico.

    Mexico Support Functions

    Procurement
    Any supplies needed to support your operation in Mexico are purchased, on your behalf as a pass-through cost, and delivered to your operation. You can use the proven group of vendors that Javid has, or we can seek other options as you desire.
    Accounting
    The Mexico (peso) costs for your operation are tracked in a software program to provide you summaries that support your expenditure history and the shelter invoicing.
    A Mexican accounting firm is contracted to insure constant updates to changes in Mexico law that governs the Mexican operation.

    We basically do all of the accounting required to run the operation

    Subcontractors

    In the past 29 years Javid has established contacts and good relationships with most of all the local contractors and sub-contractors. You will have access to a group of capable and dependable contractors in Mexico. These cover a wide range of services you will need from the initial building installations through expansion efforts you may need in the future.

    Other Services

    Effective communication is a key ingredient when operating in an “unfamiliar” environment. Javid’s management is available to serve your needs 24 hours/day. Assist in the organization of special events for your operation’s employees (i.e. picnics, Xmas parties, etc.)
    Will travel to your home operation(s) to assist in the initial planning sessions for your operation’s relocation and/or any needed problem resolution.

    Special Service

    A very important service that Javid offers to its customers is consulting on successful manufacturing practices. We understand the need to be highly effective in the manufacturing arena and support our Shelter customers in their Mexico venture from the beginning.

What Do I Save in a Shelter Program?

  • The Shelter Program saves you money. Depending on the size of your operation and the contract structure of your Shelter Program you could save thousands of dollars on an annual basis compared to having the needed infrastructure on your payroll.

    The Shelter Program saves you time. You can spend all your available time managing your manufacturing operation while Javid manages all the activities needed to support your Mexico operation.

    The Shelter Program saves you worries. Javid’s experienced management staff insures you avoid any significant impacts to your manufacturing operation that could result in negative repercussions to you.

    The Shelter Program saves your customers. The competitive edge provided by your lower cost Mexico operation gives you a chance to actually reduce prices to your customers, something needed in today’s world.

What Doesn't a Shelter Program Provide?

  • The Shelter Program does not provide the day -to- day management of your manufacturing operation, or the activities that would be supported by your "home" operation.

    Javid does not control your operation the Shelter clients have 100% control over their materials, production and quality processes.

    What the client doesn't get are the hassles of managing all the support departments and the hassles of having to deal with the rules and regulations the Mexican government agencies require.

Why Javid’s Shelter Program?

  • VALUES ! Javid prides itself in protecting the basic values that have provided the foundation for the company’s success over these past 29 years. Honesty, Quality and Cost Control are the core values we manage our business by.

    Javid’s ownership has extensive Shelter experience. Over 32 years management experience as a Shelter Customer and Service Provider aides Javid in having a unique focus as a current Service Provider. We fully understand the importance to have a contractual relationship that provides:
    Cost control for the customer. Our “no hidden cost, no surprise” approach to our Shelter Fee allows the customer the ability to alter their operation’s cost structure as they see fit.
    Flexible labor administration when/if your operation’s needs change. Javid will attempt to relocate personnel into, or out of, your operation in the event of any unanticipated swings in workload. Javid’s other Shelter and Subcontract operations provide the vehicle to accomplish this.
    Commitment to success. Javid has, and continues to seek, long-term business relationships to achieve its objectives. We understand the importance of each of our customers and strive to service them with that commitment to mutual success.

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YOUR SUCCESS IN MANUFACTURING IN MEXICO IS OUR COMMON GOAL!

COME JOIN US AND BE PART OF OUR CONTINUING SUCCESS !  

Javid LLC - P.O. Box 6762 - Nogales AZ. 85628 - 520.980.5011
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