A compressor is the heart of an air-conditioner. A client company decided to procure this important part, whose core parts are mostly composed of iron parts produced through precision processing, from outside Japan.
As a trading company for aluminum makers, we endeavored to deal with this project from scratch, and have realized major transactions in which we deliver almost all parts by utilizing our logistics function.
Project Overview
Working closely with clients, we selected an overseas manufacturer, installed equipment, and gave technical guidance, to realize mass production and establish a logistics network.
- Survey and selection of suppliers
The number of manufacturers that can supply components that require advanced precision processing was limited, so there are many problems with quality assurance. We selected manufacturer for each part, so that it was possible to secure the current level of quality, while investing in equipment. - Technical guidance
In cooperation with the technological staff of client company, we reviewed production lines, developed production technologies, and gave guidance to workers. - Establishment of a logistics network and the start of mass production
It was necessary to start mass production at two production sites in Japan and Southeast Asia. In cooperation with overseas corporations of our corporate group, we established a scheme to secure a warehouse, import and export raw materials, manage inventory, and deliver products in a just-in-time manner at each production site. - Maintaining quality – Expanding parts switching
Providing on-site support to address unstable quality levels, while also promoting the launch of other parts and parts from other manufacturers, and participating in almost all overseas procurement projects to expand business.
Challenges
Customer challenges
- It was possible to give technical guidance, but there remained significant problems and concerns over the survey and selection of suppliers, language barriers, and stable procurement after the commencement of mass production.
- Continuous communication & follow-up for assuring quality was impossible by their company alone.
Our challenges
- Our knowledge of precisely processed iron products was superficial compared with that of non-ferrous products, so it was difficult to secure quality all by ourselves.
- While the number of parts was enormous, there remained an issue on how we could develop an efficient logistics scheme while curbing costs.
- In order to start mass production at two sites, it was necessary to grasp respective circumstances in detail and control each issue.
Results
- We first procured specific parts, accumulated experience, expanded transactions, and now handle several hundred kinds of parts. We have established a dedicated distribution route, obtaining a strong position as a first-tier business partner of clients.
- In addition to compressors, we started handling other parts, such as motors, deepening our company’s knowledge and increasing our experiences in this field. Through this project, we made more transactions with overseas competent business partners, and became able to do business in a broader range of fields.
Because of Our Company
As a trading company: We tackle each trouble with utmost effort while involving people around us.
We have been expanding our scope of proposals beyond aluminum and non-ferrous materials to meet our customers’ needs. In the air-conditioner field, we used to handle mainly non-ferrous materials, and it was challenging to handle precision iron parts, especially compressor parts, which impose strict requirements. In such fields where we cannot do business by ourselves, we cooperated with the development staff of client companies, local suppliers outside Japan, and our staff at overseas business establishments to overcome trouble. This demonstrates our business style, that is, tackling issues while involving people around us without sticking to conventional ways.
Logistics function: Distribution is the lifeline for manufacturing.
“Logistics” is one of the functions that highlighted the presence of our company in this project. Even inexpensive, high-quality, competitive, rare items will become worthless, if they are not delivered to a destination when necessary. Our company has established an efficient, stable logistics network, by utilizing our connections with logistics companies and local affiliates in each country. The service of distributing or procuring products with this function is one of our strengths, and we are now expanding it not only metal and raw materials, but also electronic parts, which require special management.
