SNECI is working on the Optimization of Local Integration in Southeast Asia for a major European OEM
As a part of its Purchasing & Supply Chain activities, SNECI has been carrying out both sourcing missions and missions on the logistics’ optimization for many years. Recently, a major European OEM asked SNECI to work on a more global approach: the Optimization of Local Integration for a new complete vehicle in Southeast Asia.
The first step of the mission was to review and confirm the local integration rules of the country of the mission. “We were capable to successfully complete this first step thanks to our good knowledge of the local market and our local teams”, says Cyril Hammer, Purchasing & Supply Chain Director of SNECI.
The second step was to carry out a feasibility study on the types of localization for the main functions of the vehicle. “We started from a complete BOM (Bill Of Material) of a vehicle and estimated not only the price of parts but also tooling and investments required for the validation and industrialization of all locally integrated parts compared to imported ones. This was possible thanks to our Product & Process experts,” explains Cyril Hammer.
SNECI then made recommendations on the Optimization of Local Integration according to criteria defined together with the manufacturer, reaching a compromise between the achievement of Local Integration objectives on one side, optimizing total acquisition costs and minimal investment on the other side.
The last step was the creation of a development schedule for each component that was going to be locally integrated. This included RFQ support, supplier assessment, technical review evaluation, supplier choice, tooling kick-off, pre-serial phase, and SOP.
“With the permanent evolution of countries’ customs regulations and the proliferation of “small” production units, OEMs will have to be more and more reactive on these issues. The unique tools that we have developed allow the OEMs to see in real time how these changes impact their Local Integration rate and, therefore, make industrial decisions very quickly,” says Stanislas Bailly, Managing Director of SNECI.