integria logistics oy ltd new business concept for manufacturing networks

Integria Logistics Oy LtdNew business concept for manufacturing networks

Timo KoivumäkiVehicle component supplier network development project closing seminar

Tampere 7.5.2012

Integria Logistics Ltd Oy

• Background• Vision and business idea• Field of operation and network• Offering• Establishing support• Business case structuring• Market potential of Russian automotive industry• Contacts

Background

• A spin off from Automotive Supplier development project• Initiated by an automotive OEM in Russia • Suited to serve multilayer manufacturing networks• Combines elements of LSP, Trading house and IT company• Built on long experience and competence of key persons• Market analyzing and business plan development started

2008• Integria Logistics Ltd Oy founded in the end of 2011 • Focus in serving Finnish and Scandinavian companies who

are targeting becoming suppliers to industry in Russia• Member of Odette / NAF since April 2012

Vision and business idea

Opening a new market for Nordic component manufacturing industry

and leaving a lasting footprint in Finnish automotive industry

Mission

Integria is a supply chain management specialist and a system vendor providing

customers optimizing of sourcing and procurement as well as localized value

added operations thus creating value and competitiveness

Vision

Integria provides a supply chain management model for developing

and streamlining global capital, information and material flows

Business idea

Integria field of operation

Viipuri

• Swedish Procurement

• Finnish Logistics

• Russian Sales

Swedish Procurement company- Sourcing,

purchasing- Network

management- Quality assurance

Finnish LSP- SCM- JIT operations- Packing and kitting- Forwarding

services- ERP Integration

Russian trading agency - Sales & trading- Value-added Manufacturing JIT- Localization- Customs & delivery

Operational excellence, Supply Chain transparency, Field tested processes

Integria offering

• Linking suppliers and buyers• SCM Optimization

• Logistics• Localization

• Trading from Russian DUNS• Establishing support• Production transferring• JV setting up• Consulting

CustomersOEM’S & Tier 1

LocalizationSCM Optimization

Integria LogisticsSourcing & Sales

QualityLogistics

ERP transparency

Supplier E

Supplier D

SME- Supplier

A

SME- Supplier

C

SME- Supplier

B

Positioning

We provide

• Competitive sourcing• Nordic countries• China & India

• Lead time shortening• Localization• Transport management• Kitting and sequencing• Transparency / ERP integration

Network IT support

Procurement- Consolidated sourcing- Process management- Alternative suppliers- Contract management- Financing- Quality assurance

Localization - Efficient sales- Trading agency- Value added service- JIT operations- Sequencing

Logistics- Kitting- Sequencing- Safety stock- Forwarding- Customs- Process quality

ERP Transparency, Cost management

Cars- Seats- Interior panels- Carpets, Insulations- Batteries- Wheels- Metals parts- Electrical components- Bumpers …..

Heavy vehicles- Seats- Bunks- Axles- Radiators- Gears- Gearboxes- Hydraulics- Plastic items ….

Integria service solution

Localization in Business Park Vyborg

• Business Park provides production support services• Consulting• Turnkey full scale projects• Outsourced manufacturing

• Premises are provided by property partner• Sublease arrangement via Business Park Vyborg is

possible depending on agreement model

Integria’s Support; preparation for OEM delivery• Integria has up-to-date understanding of OEM Quality and

process requirements• Complete audit - insight to the actual situation

• View of improvement needs• PSA (Potential Supplier Assessment), PCPA (Control Plan Audit)

• Action plan preparation• Audit result -> training and other needs of Potential Supplier

• Integria development and training• Automotive special requirements

• Co-operation with ISO certification project• Support and benchmark

Business case structuring

• Lead by Integria• Standardised project concept• Supplier candidates audited and action plan created• Project financing secured• Project kick off and follow up

Project team

• Organization and resources• Project team

• A project manager and concerned staff• CEO / Production manager / engineer

• Basics on QA• English language• Committed to automotive goals

• A matter of commitment • Most changes needed relate to larger volumes and change in

production scale and pattern• Need for Process quality and Quality process understanding

Automotive Industry Certificates

• ISO/TS 16949• Automotive special standard

• ISO 14001• Environmental policy

• MMOG• Material Management operations guide

• Supplier may be accepted without certification• Transition period• Defined date for audit

OEM basic requirements

Potential supplier; Imperative documents for OEM audita) Facility DUNSb) Purpose & Plant Location c) Production Capacity d) Production Process Chart e) Plant Equipment Plan f) Layout Plan (Plant & Warehouse) g) Investment Plan h) QSB compliancei) Flow Chart of Quality Control System j) Process Defect Rate k) EDI connectionl) CEO Commitment letter confirming plan to setup a new business

(in the new country)

OEM basic requirements

Time to become a supplier

a) Acceptable product, capacity (2 days from initial inquiry)b) Quotation, pricing (10 days)c) OEM audit (3+ months) d) PPAP approval, trial runs, tooling when necessary (3 – 6+ months)e) First delivery (6 – 12 months)

OEM Ready - Project overview

• OEM Ready – common objective

• Practical approach • 2nd party certification • Aiming at starting deliveries

• Project lead-time• Minimum 6 weeks

Business potential in Russia

• Immediate need of 600 or more new suppliers in Russia • Component market size 7 Billion Euros

• Approx 50 % within reach for Nordic suppliers• Nordic and Russian industry sizes match • Nordic supplier base is a competitive sourcing market for

Russia in terms of supply chain operation and lead time optimization

Contacts

Timo KoivumäkiCOO, Chairman

Integria Logistics Oy Ltd Kimmeltie 3, 3rd FloorPO Box 4102101 ESPOOFinlandtel: +358 9 4289 00 88mob: +358 40 524 44 11timo@integria.fi

Mikhail SmirnovDevelopment Manager

Integria Logistics Oy Ltd Kimmeltie 3, 3rd FloorPO Box 4102101 ESPOOFinlandtel: +358 9 4289 00 88mob: +358 40 678 67 47mikhail@integria.fi