Mexico is the second industrialized country in Latin America after Brazil. Economic situation has changed since the 80’s, lots of firms has been privatised. Mexico is the first exportation platform in the world with 32 free trade agreements signed with several countries including Canada, United States, European Union... Mexico is bound by Pacific and Atlantic oceans and has common borders with United States, Belize and Guatemala. It is an attractive production venue because of its low labour costs and his border with USA.

1. An evaluation of the factors that will affect the selection of distribution channels when production is relocated to Mexico

The delocalisation of production in Mexico will affect the logistics organisation of the business. The distribution channels have to be modified: the products will be distributed from the point of production in Mexico, to final customers in the USA, Europe, India or China. To select the most suitable channel, several elements have to be taken into account:

1.1. General elements suitable for every market or product:

• The products have to be sold in market places appropriated for this kind of products, for our products it means for example, shops specialized in sport equipments. Moreover, it would be preferable that merchandise is well displayed in the shops, that the products are promoted... Given that we already have customers in place, these elements should not be taken into account considering that we keep the same customers and don’t try to enlarge the market.
• Cooperation with distributors is very important. We have to make agreements with suppliers or receivers regarding order sizes, unit loads types, product handling characteristics, material handling equipment, delivery access to the customer, delivery time...
• The level of service must be defined with suppliers and customers. This level should be measured and maintained. The performance of suppliers can be used to choose the best ones.
• Logistics