Integria Logistics Oy Ltd
New business concept for
manufacturing networks
Timo Koivumäki
Vehicle 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
Vision
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
Business idea
Integria provides a supply chain
management model for developing and
streamlining global capital, information
and material flows
Mission
Opening a new market for Nordic
component manufacturing industry and
leaving a lasting footprint in Finnish
automotive industry
Integria field of operation
• Swedish Procurement
Viipuri
• 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
Positioning
Supplier
E
Supplier
D
SMESupplier
A
Integria Logistics
Sourcing & Sales
Quality
Logistics
ERP transparency
SMESupplier
C
SMESupplier
B
Customers
OEM’S & Tier 1
Localization
SCM Optimization
We provide
• Competitive sourcing
• Nordic countries
• China & India
• Lead time shortening
• Localization
• Transport management
• Kitting and sequencing
• Transparency / ERP integration
Network IT support
Integria service solution
Cars
- Seats
- Interior panels
- Carpets, Insulations
- Batteries
- Wheels
- Metals parts
- Electrical components
- Bumpers …..
Heavy vehicles
- Seats
- Bunks
- Axles
- Radiators
- Gears
- Gearboxes
- Hydraulics
- Plastic items ….
Procurement
Logistics
-
-
Consolidated sourcing
Process management
Alternative suppliers
Contract management
Financing
Quality assurance
Kitting
Sequencing
Safety stock
Forwarding
Customs
Process quality
Localization
-
ERP Transparency, Cost management
Efficient sales
Trading agency
Value added service
JIT operations
Sequencing
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 audit
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
Facility DUNS
Purpose & Plant Location
Production Capacity
Production Process Chart
Plant Equipment Plan
Layout Plan (Plant & Warehouse)
Investment Plan
QSB compliance
Flow Chart of Quality Control System
Process Defect Rate
EDI connection
CEO Commitment letter confirming plan to setup a new business
(in the new country)
OEM basic requirements
Time to become a supplier
a)
b)
c)
d)
e)
Acceptable product, capacity (2 days from initial inquiry)
Quotation, pricing (10 days)
OEM audit (3+ months)
PPAP approval, trial runs, tooling when necessary (3 – 6+ months)
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 Koivumäki
COO, Chairman
Mikhail Smirnov
Development Manager
Integria Logistics Oy Ltd
Integria Logistics Oy Ltd
Kimmeltie 3, 3rd Floor
PO Box 41
02101 ESPOO
Finland
tel: +358 9 4289 00 88
mob: +358 40 524 44 11
timo@integria.fi
Kimmeltie 3, 3rd Floor
PO Box 41
02101 ESPOO
Finland
tel: +358 9 4289 00 88
mob: +358 40 678 67 47
mikhail@integria.fi