Yumari: Revolutionizing Nearshored Manufacturing With AI

Q: How does Yumari's cross-border manufacturing platform facilitate connections between Latin American wholesale manufacturers and buyers? 

A: Yumari is a demand-driven manufacturing platform that simplifies the traditionally complex supply chain process for businesses. When a company needs to manufacture a product, it typically faces challenges like factory selection, product development, sampling, manufacturing, quality control, logistics, and customs, especially for cross-border operations. This process can be daunting and inefficient, particularly in today’s world where global supply chains are increasingly fragile due to geopolitical risks, rising logistics costs, and disruptions like pandemics.

Yumari’s solution lies in promoting the relocation of supply chains to regional manufacturing hubs, reducing dependency on weak and high-risk international systems. Our platform focuses on creating certainty and reliability for businesses, enabling them to build stronger, more efficient supply chains closer to their markets.

What sets Yumari apart is its buyer-centric approach. Unlike traditional B2B platforms that charge manufacturers for visibility or ads, Yumari uses AI to match buyers with the most suitable suppliers based on their unique requirements, such as budget, expected quality, and delivery times. Factories are our partners, not paying clients, ensuring unbiased and effective matchmaking.

Q: How is Yumari employing its emerging technologies to be a key differentiator and enhance its operations?

A: Yumari leverages advanced large language models (LLMs), including LLama, to enhance its operations and improve the precision of its services. These models are trained with proprietary data from every quotation generated, allowing us to continuously refine our processes and provide faster, more accurate quotes in the future.

When a buyer approaches us, they can submit their requirements in various formats: a product sample, a technical sheet, a spec sheet, or even a link to a similar product they want to replicate. The challenge lies not only in identifying what they need but in determining whether the desired product can be manufactured within their expected price, timeline, and quality standards.

Our AI systems analyze these factors in real-time, bridging the gap between buyer expectations and the manufacturing capabilities of our partner factories. By learning from each interaction, Yumari ensures that future processes are increasingly efficient, precise, and tailored to buyer needs. This continuous improvement through technology is a key differentiator that sets us apart, making product sourcing faster and more reliable for our clients.

Q: Yumari promises to always have stock. What role does technology play in inventory control? 

A: Technology is central to Yumari’s ability to ensure consistent stock availability while simplifying supply chain management. Managing multiple products across various factories and countries requires juggling multiple platforms like emails, messaging apps, and calls, which often leads to human errors. These mistakes, such as running out of raw materials, missing production timelines, or receiving products out of season, can be incredibly costly for businesses.

Yumari solves this by providing a single dashboard where companies can manage their entire supply chain. From product development to manufacturing, quality control, transit, and final delivery, everything is visible and organized in one place. This centralized approach not only reduces errors but also enhances decision-making. Users can track every stage of their products in real time, receive notifications about reordering timelines, and plan proactively to avoid stockouts.

Our platform also integrates with tools like Shopify, allowing us to analyze clients’ sales data and automatically suggest optimal reorder points based on manufacturing and transit times.

Q: Logistics plays a crucial role in delivering products efficiently. How does Yumari leverage its logistics network to ensure faster and cheaper delivery to clients' doorsteps? 

A: At Yumari, we believe that if something does not need to be made on the other side of the world, it should not be. Our logistics strategy begins with prioritizing regional manufacturing capabilities to reduce transit times and costs. A significant challenge in Mexico, despite being a manufacturing powerhouse, is the lack of a centralized B2B supplier database. By giving visibility to regional manufacturing through our platform, we help integrate local players into supply chains more effectively.

When regional manufacturing is not an option, we expand the search to nearby regions capable of meeting the project’s requirements. Yumari’s algorithm automates this process, considering factors such as proximity, free trade agreements, and logistics timelines. For instance, if a client in the United States needs cotton t-shirts, our algorithm will prioritize Mexican suppliers due to the USMCA trade agreement, which offers tariff-free imports if specific local content thresholds are met.

This regional-first approach ensures faster deliveries, lower costs, and maximized efficiency, all while leveraging trade agreements and minimizing supply chain complexity.

Q: How does Yumari plan to leverage its capabilities to capitalize on nearshoring, while rapidly responding to market demand for faster turnaround times and reduced lead times? 

A: Nearshoring presents a significant opportunity for Mexico and Latin America to generate value, but it is often misunderstood as simply attracting foreign direct investment (FDI). FDI only makes sense if it creates value locally, either through job creation, technology transfer, or talent development. For nearshoring to truly benefit Mexico, we need policies that integrate local suppliers into global value chains, like China’s approach during the offshoring era. China mandated joint ventures with local firms and technology transfer, fostering industrial growth and expertise.

At Yumari, our focus is on integrating regional suppliers wherever possible, reducing reliance on imports. If imports are necessary, we prioritize sourcing from allied or nearby countries to support regional economies and minimize environmental impact. By using our platform, companies can regionalize their supply chains, ensuring faster lead times and greater efficiency.

The lack of vertical integration outside industries like automotive, aerospace, and electronics is a critical issue. Many Mexican industries, such as footwear, textiles, and manufacturing, are struggling due to competition from subsidized foreign products and a lack of digitalization and professionalization. For example, shoemakers in Guanajuato now find it cheaper to import finished Chinese products and rebrand them than to manufacture locally.

Q: How does Yumari’s technology-driven platform help businesses adapt to geopolitical and policy changes, and what role does it play in supporting both large corporations and emerging B2C brands?

A: Yumari’s approach to navigating the challenges of geopolitics and public policy relies on its flexibility and technology-driven platform. If geopolitical shifts, such as changes in trade agreements, disrupt the supply chain, Yumari can pivot quickly to alternative suppliers. This adaptability is a core strength of its platform, which dynamically selects the most relevant suppliers for each project based on real-time data and circumstances.

The company operates as a digital platform, not as a sourcing or quality control agency, which allows it to scale efficiently without being dependent on human resources. The latest version of the platform (6.0) is designed to offer buyers in North America more control over product creation, development, and delivery, enabling them to manage the entire process seamlessly.

Yumari serves a diverse clientele, including large corporations producing promotional merchandise like hoodies and caps, entrepreneurs launching new brands, and direct-to-consumer brands bypassing retailers to maintain control over their margins. Recent developments have opened new opportunities with B2C brands that have grown rapidly but lack the sourcing and supply chain infrastructure. Yumari has begun working with these companies, helping them with product development and factory selection.

Yumari’s platform helps Mexican factories access international markets, offering better margins and terms while reducing reliance on intermediaries, thus enhancing competitiveness. By returning margins to production and manufacturing, Yumari supports local businesses, allowing them to reinvest in R&D, create higher-value products, and pay better wages, ultimately fostering economic growth and social development.

This digital approach disrupts the traditional model of intermediated trade, which is especially prevalent in Mexico, where many international transactions involve multiple intermediaries, raising costs for both buyers and sellers. 

Q: What opportunities exist in the Mexican market?

A: The opportunity lies in the undeniable demand for stronger supply chains. The need for nearshoring in North America, Europe, and regions like North Africa is real. However, the challenge is that Mexico is not fully prepared to capitalize on it.

The demand from North American buyers, particularly those in the United States, is growing as companies look to shorten their supply chains and source closer to their end markets. Many businesses express interest in relocating their supply chains to Mexico due to proximity and market alignment, but they face obstacles such as finding reliable suppliers, ensuring quality, and navigating regulations for sustainability, diversity, and inclusion.

Mexico’s opportunity lies in addressing these gaps by focusing on professionalizing, digitalizing, and giving visibility regarding its manufacturing capabilities, while building vertically integrated industries. The demand is already present, now the work must be done locally to unlock Mexico’s potential and make it easier for companies to build and strengthen their supply chains within the region.

Q: Yumari won the 2024 Entrepreneurship World Cup, receiving a prize of US$100,000 to advance its technology and AI capabilities. What made the company worthy of receiving this recognition? 

A: The journey to winning the 2024 Entrepreneurship World Cup began a year ago when Yumari won the local competition in Mexico, organized by INC Monterrey. This victory qualified the company to compete globally against 16,400 startups from around the world. Yumari advanced through several stages, from the Top 250 to the Top 100, ultimately earning a spot in the finals held in Saudi Arabia. Hosted by Monsha’at, the Saudi Crown Fund, the five-day competition featured 100 companies from 81 countries.

The judges recognized Yumari for its innovative approach to creating regional manufacturing hubs, a concept not currently implemented elsewhere. While Yumari’s efforts began in Mexico, leveraging the world’s busiest border for trade between the United States and Mexico, its vision extends far beyond. The company’s platform and AI-driven technology are designed to adapt to different regions, enabling seamless manufacturing connections. Yumari’s success stems from its ability to build a scalable model. 

Q: Yumari recently reported meeting with Minister of Economy Marcelo Ebrard following its victory at the Entrepreneurship World Cup. What were the key topics discussed during the meeting, and what insights did the company gain from Ebrard? 

A: The meeting with Minister of Economy Marcelo Ebrard was more productive than expected, moving beyond protocol into actionable planning. Ebrard outlined his vision for the Ministry of Economy, emphasizing the creation of “well-being corridors” with industry-specific leaders. These leaders serve as direct liaison between business sectors and policy development, addressing the challenge of having one person manage diverse industries like automotive, electronics, food, and furniture. This approach aligned closely with Yumari’s focus on categorizing industries within its platform.

Initially, Yumari accepted all types of procurement requests but soon realized the need to focus. By analyzing competitive areas for Mexican suppliers and future order potential, Yumari prioritized consumer products, specifically textiles, apparel, food and beverages, beauty, personal care, and furniture. Currently, 80% of its activity is in textiles and apparel, aligning with its efforts to support and revitalize Mexico’s struggling textile industry.

Three key collaborations emerged from the meeting. First, Yumari will work with the state and federal linkage team to increase visibility of high-potential industries in each state, facilitating participation in procurement opportunities and promoting local sourcing to replace imports. Second, Yumari is collaborating with the innovation team to address challenges startups face in accessing venture capital and understanding the funding landscape, drawing on its own experience as a successful Mexican startup. Finally, Yumari aims to increase public awareness of its platform, showcasing it as a practical tool to transform commerce and supply chain processes in Mexico.

Q: What achievements or outcomes in 2024 would signify that the company has met or exceeded its objectives? 

A: In 2024, Yumari experienced significant growth, achieving 10x growth compared to the previous year. Despite the challenges of rapid expansion, the company is pleased with its progress, particularly the successful onboarding of 56 American companies that have managed their supply chains entirely through the platform since its launch in October of the previous year. This achievement highlights the value Yumari has provided to these companies, helping them save money, grow their businesses, and integrate new products into their supply chains.

Yumari’s focus will be on replicating its success in the United States, expanding its buyer base in North America. Currently, about 80% of its customers are from Latin America, and the goal is to shift this distribution to 80% from the United States and 20% from Mexico. This next phase will involve scaling its platform and continuing to deliver innovative solutions to meet growing demand.

Yumari is a nearshoring and manufacturing platform that leverages AI to connect businesses with the most relevant suppliers within their natural region. Its dashboard supports full supply-chain management, from product development to sampling, manufacturing and end-to-end logistics.