As a client of our company decided to transfer the function to manufacture automobile parts from Japan to a foreign country, it became necessary to supply products to the client outside Japan.
As we were required to “designate local manufacturers” and “secure quality equivalent to that in Japan,” we selected manufacturers, secured quality, and started mass production in a short period of time by utilizing our experience and supply chain.
Project Overview
To reproduce the supply system and quality level in Japan in cooperation with local manufacturers. Within only 6 months, we had to start full-throttle mass production.
- Selection of suppliers
Among a number of local manufacturers, we secured business partners that can satisfy the client’s demands by using our existing supply chain and also finding new suppliers. - Guidance for manufacturers, development of prototypes, quality inspection, and passing the client’s audit
During the 6-month period from the selection of makers to the start of mass production, we secured required quality (by adopting special processing) and passed the client’s audit on production processes. - Establishment of a mass production system to the development of a logistics network
We established a system for just-in-time (JIT) delivery like in Japan, and then commenced mass production. - Operation across multiple countries
While maintaining the achieved quality of mass production, we applied the business scheme to factories in other countries and expanded the business.
Challenges
Customer challenges
- In order to win the competition, it was necessary to secure parts suppliers at low cost without degrading quality compared with the manufacturing inside Japan.
- The allocated time was only 6 months.
Our challenges
- In order to satisfy the severe requirements about costs, it was necessary to select manufacturers that can deal with all processes, including material procurement, processing, and coating, in a seamless manner.
- We had to give instructions to local manufacturers and secure the quality level of Japanese automobile parts.
Results
- We achieved the target costs and quality within 6 months.
- In close cooperation with manufacturers, we maintain the high-quality level and are now supplying products from 5 bases in 4 countries by utilizing the established logistics network.
Because of Our Company
Selection: To find business partners from among a countless number of manufacturers
In order to achieve a demanding cost target while satisfying strict quality requirements, it was necessary to select manufacturers that can deal with all processes, including material procurement, processing, and coating, in a seamless manner, so the hurdle was quite high. Our local affiliate is always looking for competent suppliers, so we were able to finish the selection of manufacturers that can meet the requirements in a short period of time.
Quality: To achieve the mass production quality by giving guidance by ourselves
In general, it is considered that the role of a trading company is just to connect companies, but our company has personnel who can give guidance about manufacturing processes and quality control by utilizing our forte as a manufacturer-affiliated company. The manufacturer already had sufficient equipment and personnel, but there were many hurdles to securing quality, and we failed to pass the first audit of the client. Within a limited period of time until mass production, we gave guidance while involving our local staff and supporting employees dispatched from Japan, passed the third audit, and managed to start mass production. The ability to give a proposal by getting involved with quality assurance rather than merely forwarding products is another strength of our company.
