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Global Sourcing Services

Today's Challenge

Flexible sourcing on a global basis is becoming a viable alternative for manufacturers. However, the rules are continuously changing due to limitations and restrictions in each market. For example, in China, the government is trying to control and manage growth by limiting the variety of business entities. To successfully source product, you must clearly understand the culture, the business, and the government of the sourcing country.

Hidden costs

In certain countries, QS-9000 or ISO/TS 16949:2002 certified suppliers may appear to be capable of delivering products and yet habitually not be able to perform. Hidden costs can result from:

• local environment
• cultural differences
• higher business complexities
• inconsistencies of utilities
• unknown levels of bureaucracy
• lack of enforceable laws
• unevenness in the abilities of local workers
• high employee turnover
• additional travel costs
• integration of IT systems
• cost for urgent delivery flights
• communication delays as a result of time differences.

Omnex has a strong track record of assisting clients making successful moves into Asia. With over 10 years of experience in Asia, and offices in Thailand, China and India, Omnex has become the provider of choice for many multinational corporations doing business in Asia. Any company who is outsourcing products and services, obtaining joint venture partners, and establishing business and manufacturing operations in Asia can benefit from our experience. Omnex has worked with many of the leading automotive OEMs and suppliers like Ford, Visteon, Cummins and numerous service organizations.

Global Sourcing Services

Phase I: Supplier Identification

Omnex will work with you to identify the products or services that can be successfully sourced in Asia. In developing a "roadmap for success," Omnex will help determine the success metrics, conduct an initial business assessment of potential suppliers or partners, and then recommend the most suitable supplier. We strive to make sure that suppliers are able to meet the milestones and timetables that you set.

Phase II: Supplier Development

Whether you decide to source or partner in Asia, Omnex will work with your project leader(s) to ensure a successful product development process. Omnex will liaison and transfer knowledge between you and your supplier throughout the entire process. At the end of Omnex's engagement, the supplier will provide you with a successful product that meets all your Production Part Approval Process (PPAP) criteria. All factors including quality, delivery, and packaging risks will be considered to provide a high quality product at cost and on time while conforming to US and International standards for performance.

Ongoing Support

Following the completion of supplier development services, Omnex can provide product containment services until you are confident of a supplier's quality. In fact, Omnex is one of only a few firms authorized to handle the most difficult supplier development issues (e.g., DaimlerChrysler's SIP program and Visteon's 3rd Party Supplier Development program).

Additional Services

In addition to the partner development and operational services outlined, Omnex will help you negotiate an agreement suitable for suppliers or partners. If your decision is to set up your own operations in Asia, Omnex will help identify legal and accounting firms as well as provide introductions to various governmental agencies. Furthermore Omnex can assist in the identification and recruiting of top management personnel.

Success Stories

India

Omnex partnered with an Indian OEM, TATA Motors, and their 300+ component suppliers to successfully launch a new automobile. Omnex developed a process to take all 300+ suppliers through a product development process and were taught US automotive technologies including APQP, PPAP, process optimization, FMEA and Control Plans. After the involvement of Omnex, all 300+ suppliers successfully completed new product approvals with their customers.

Omnex was contracted by Ford India to introduce the Ford automotive culture to Ford's 135 suppliers in India to prepare for model launch of the Ford Escort in India. As part of this engagement, Omnex provided training and hands on assistance to top management, engineering, and quality departments help them understand the role of a supplier in the automotive industry.

China

A large US engine manufacturer wanted to relocate a diesel engine plant in China. Omnex helped both the US and Chinese-based organizations develop management systems to provide a product that met our client's international standards for product, quality and delivery. Omnex worked with the management, engineering and quality teams to successfully transfer the product and engineering technology to the Chinese operations. Due to our joint efforts in Advanced Product Quality Planning (APQP) the product was launched on time and product data confirmed that the product engineering specifications met international standards for quality.

Omnex also worked with a JV partner for a major tier one in China. We helped with plant operations, design and implementation, management systems, processes and new product development. Omnex helped this client perform PPAP on the product and get customer approval as well.

We helped Diesel Locomotive Works ("DLW") a diesel locomotive manufacturer that has a transfer of technology agreement with GM-Locomotive group in the USA and their JV partner in India to implement a new product development strategy. We trained the employees to execute the strategy, producing a very successful product launch.

We have worked with SAIC, the JV partner to GM and Volkswagen in China to improve their supply base in China. Omnex provided regular implementation training for the suppliers and helped many of them improve their quality and productivity.