Proposal Sent
Sent by Raffaello to Omar (Apr 2026) — awaiting client reply Ver propuesta ↗ Owner: Raffaello
← Venture Signal Report
PROPOSAL: SENT Mar 16, 2026 Plant Visit + Meeting
MAGG / Electro Mag — Visit Notes
Naucalpan plant tour + discovery meeting. Sources: voice notes (plant visit) + meeting transcript (Mar 16).
Proposal sent. Raffaello sent the proposal to Omar (Apr 2026). NetSuite implementation starts April 2026 — if we close before kickoff, AI layer ships with the rollout. Waiting for reply.
Confirmed Facts
Production model95% make-to-stock, 5% make-to-order
Production headcount270–320 people — capacity 100% maxed, need 35+ more
Active sales SKUs3,000 (1,500 active sellers — 75 SKUs = 50% of revenue)
Raw material SKUs17,000 — all tracked in Excel, no ordering rules
Sales trendDown 50% since pandemic, never fully recovered
ERP — NetSuiteContract signed. Starts April 2026 → Jan 2027 (8 months). Includes manufacturing + warehouse modules.
Current dashboardGoogle Sheets, manually fed daily — semáforo per SKU
Maintenance systemNone — all in technicians' heads. Fully reactive.
Security cost~750,000 MXN/month — informal, no visibility
Admin team (Puebla → Naucalpan soon)5 procurement · 2 traffic · 15 CS/backoffice · 2 AR · 2 AP + accounting + sales
Upcoming hiresDigital Transformation Leader (NetSuite champion) + Commercial Director
Facility planLand purchased — consolidating all plants into one location in ~2 years
Plant Infrastructure
Tepoztlán
Metalworking / metal fabrication. Ships components to Naucalpan.
Naucalpan
Final assembly (receives from Tepoztlán + Puebla) + finished goods warehouse.
Puebla
Electronics factory + all admin/commercial team. Moving to Naucalpan in months.
Machinery: extensive, redundant (each type has 2 units), multi-origin (Japan, Italy, USA, China). Each machine runs its own standalone system — nothing cloud-connected, no MES. Gap closes with NetSuite.
Pain Points — Confirmed in Person
1
Procurement — 17,000 SKUs in Excel
HIGHEST
  • 17,000 raw material import SKUs tracked in Excel with no ordering rules
  • No optimization for stockouts or over-stock
  • Waste (merma) present but unmeasured — only general in/out
  • Idea discussed: smart scales before/after material usage to capture real consumption
2
Inventory / Sales Intelligence
HIGH
  • #1 complaint from clients and branches: constant stockouts
  • 75 SKUs drive 50% of sales — the remaining 1,425 are underserved
  • "Zombie" SKUs: 15–25 units/month across 8 branches = ~2/branch/month
  • Zombie reactivation being tested: large batch production → sell through
  • Monterrey pilot: Feb was first month beating prior year — purely from having stock
  • Lost orders (negative sales) not tracked anywhere — blind to stockout signals
3
Maintenance — No System
HIGH
  • All machine maintenance knowledge lives in technicians' heads
  • Fully reactive — no preventive schedule, no consolidated history
  • No digital manuals, no maintenance database
  • Multiple machines per type (redundancy), each with its own legacy system
4
Production Planning
MEDIUM
  • "Si vendes 10, te hago 10" — plans based only on history, no growth buffer
  • No automatic production prioritization (NetSuite will address partially)
  • Capacity maxed — optimization needed before headcount scales
5
Commercial / Distributor Side
NOT CONFIRMED
  • 3,000 distributors — quote and approval volume not discussed in this visit
  • Original hypothesis: discount/price approval governance is manual at this scale
  • Needs second call with commercial team to confirm before scoping
Pattern Match — Updated Post-Visit
Pattern (Venture Signal) Pre-Visit Post-Visit
Inbound Request → Quote HIGH ~ Still unconfirmed — not discussed in visit
Discount / Price Approval HIGH ~ Still unconfirmed — not discussed in visit
Inventory Allocation MED ~ CONFIRMED HIGH — stockout is #1 complaint
Maintenance / Knowledge Management Not in original map CONFIRMED HIGH — no system, all in heads
Procurement Intelligence Not in original map CONFIRMED HIGH — 17K SKUs in Excel, no rules
Entry Point Decision
Two paths. Choose before building the proposal.
Option A — Recommended
Ops First
  • Procurement rationalization (17K SKUs)
  • Maintenance system + manual digitization
  • SKU performance intelligence (replace Google Sheets)
  • Negative sales tracking

Why: Confirmed pains, immediate need, and the NetSuite window creates urgency. They're already thinking about transformation — this positions us as the pre-NetSuite intelligence layer.
Option B — Needs Validation
Commercial First
  • Distributor quote automation
  • Discount / price approval governance
  • Spec matching (1,500+ SKUs)

Why not yet: Not discussed in this visit. High-potential hypothesis, but needs a second call with the commercial team to confirm before scoping.
Recommendation: Lead with Option A (ops). Use NetSuite timing as the urgency hook — "before your implementation locks scope." Position Option B (commercial distributor workflows) as Phase 2 once inside. Send proposal by mid-April.
Next Steps
1
Decide entry point (ops vs. commercial). Recommendation: ops. Build proposal around procurement + maintenance + SKU intelligence.
2
Send proposal before April — NetSuite implementation starts then. After kickoff, any AI scope gets deferred to 2027.
3
Schedule second call with commercial team to confirm distributor quote/approval volume before scoping Phase 2.
4
Connect with the Digital Transformation Leader once hired — they will be the internal champion for any implementation.