1. Integria Logistics Oy Ltd New business concept for manufacturing networks
Timo Koivumäki
Vehicle component supplier network
development project closing seminar
Tampere

2. 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

3. 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

4. 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

5. Integria field of operation
Swedish Procurement
Finnish Logistics
Russian Sales
Viipuri
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

6. Integria offering Linking suppliers and buyers SCM Optimization
Logistics
Localization
Trading from Russian DUNS
Establishing support
Production transferring
JV setting up
Consulting

7. Positioning Integria Logistics Customers OEM’S & Tier 1 SME- Supplier
Sourcing & Sales
Quality
Logistics
ERP transparency
Supplier E
Customers
OEM’S & Tier 1
Localization
SCM Optimization
Supplier D
Deliveries to the automotive factories from the Added Value site.
Factories will buy in Russian currency
A new Integrator (System Vendor) forms a network of suppliers, based on OEM component needs and demands
SME-
Supplier C
SME-
Supplier B

8. We provide Competitive sourcing Lead time shortening Localization
Nordic countries
China & India
Lead time shortening
Localization
Transport management
Kitting and sequencing
Transparency / ERP integration

9. Network IT support
Deliveries to the automotive factories from the Added Value site.
Factories will buy in Russian currency
A new Integrator (System Vendor) forms a network of suppliers, based on OEM component needs and demands

10. ERP Transparency, Cost management
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
Consolidated sourcing
Process management
Alternative suppliers
Contract management
Financing
Quality assurance
Localization
Efficient sales
Trading agency
Value added service
JIT operations
Sequencing
Logistics
Kitting
Safety stock
Forwarding
Customs
Process quality
ERP Transparency, Cost management

11. 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

12. 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

13. 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

14. 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

15. 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

16. OEM basic requirements
Potential supplier; Imperative documents for OEM audit
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)

17. OEM basic requirements
Time to become a supplier
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)

18. OEM Ready - Project overview
OEM Ready – common objective
Practical approach
2nd party certification
Aiming at starting deliveries
Project lead-time
Minimum 6 weeks

19. 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

20. Contacts Integria Logistics Oy Ltd Integria Logistics Oy Ltd
Timo Koivumäki
COO, Chairman
Integria Logistics Oy Ltd
Kimmeltie 3, 3rd Floor
PO Box 41
ESPOO
Finland
tel:
mob:  
Mikhail Smirnov
Development Manager
Integria Logistics Oy Ltd
Kimmeltie 3, 3rd Floor
PO Box 41
ESPOO
Finland
tel:
mob: