Metal Structures Manufacturing In Vietnam
- Country: Vietnam
- Year: 2018
- Industry: Metal Manufacturing
- Type: Quality Control
Increasing cost structure in China makes outsourced manufacturing expensive. The customer is also looking to diversify its supplier base to other countries and produce in the same currency the company sells worldwide. Vietnam’s currency is linked to US dollar and both moves in the same direction compared to other currencies, hedging the currency risk.
Vietnam has become one of the major manufacturing HUB’s in Asia, where most major multinational companies outsource steel structures.
Vietnam has several thousand mechanical engineering workshops 2 geographical clusters, North Vietnam (Hanoi and surroundings) and in South Vietnam, Ho Chi Minh City and surroundings. They go from small local workshops to big state-owned companies, all under the same brand name, Lilama. Although they work under the same brand, each is an independent company and specializes in their own production technology.
Based on our proposal, the Customer assigned FinnSEA Nordesk OU to perform a partner search to find qualified factories. Together with the customer, we created a list of requested qualities and competencies of the supplier, the ideal profile of the workshop. That profile was applied against a number of workshops to find a shortlist of 10 companies answering to the requirement. Those companies were then visited by our consultant, interviewed and benchmarked in various points like machinery, size, export experience, quality, sustainability, etc. They also were shown the drawings of the products to verify that they can manufacture the products.
After reporting all the details to Customer, we selected together 6 most interesting factories to visit. FinnSEA Nordesk arranged all the visit program and for 3 days the Customer and FinnSEA Nordesk met again the companies for deeper discussions and audits. Selected companies received customers quote requests.
After all meetings, the Customer selected 2 companies to continue with. Samples were done, accepted and the pilot production started. The customer saved several months of time by using FinnSEA Nordesk to do a swift Partner Search, instead of spending 6-12 months visiting randomly workshops around the country.
Key learnings for Customer:
• Detailed preparation for the visits saved months of time
• You need external service who knows the industry and has professional, analytical methods to screen the best candidates
• Recommendations from network are good but in the final end, you need your own criteria to find a suitable workshop.
• There is no need to ask quotes before the qualification. Somebody providing a low price might not qualify as a supplier.