In my earlier articles, I had shared my thoughts on factors that are working for several Indian suppliers in the field of Castings, Fabrication and Machined Components. These include skilled workforce, modern infrastructure, focus on quality and sustainability. I also highlighted the areas that require attention and need improvement, like Safety practices, adherence to PPEs and implementing 5S which go a long way in instilling confidence for the customers.
For companies outside India seeking reliable suppliers of castings, fabrication, and machined components, navigating the Indian market can be both exciting and challenging. In this article, I want to share a few effective ways of vetting India suppliers in the above space, especially for customers who don’t have a local presence in India. Again, these are not all inclusive and selecting a particular supplier may include several other factors.
1. Market Research and Supplier Identification:
Before seeking new suppliers, it is crucial to clearly identify your specific needs. Determine whether you are looking for well-established suppliers in a particular domain or if your priority is to find suppliers with the ability and expertise to scale up production according to your requirements.
Once you have a clear understanding of your supplier requirements, you can use trade organizations, industry directory websites, trade shows, and recommendations from industry peers to compile a list of potential suppliers. This is also an ideal time to consider hiring a local sourcing consultant. These experts specialize in your area of interest and either have established industry contacts or can quickly establish them on your behalf.
Ultimately, you need suppliers who have a proven track record of delivering high-quality products, maintaining reliable lead times, offering competitive pricing, and demonstrating a strong commitment to customer service.
With this in mind, we move next to vetting of these suppliers.
2. Supplier Vetting:
After compiling a list of potential suppliers, conduct a thorough vetting process to assess their capabilities, capacity, and credibility. Identify suppliers with the necessary equipment and expertise to meet your specific needs. Evaluate various factors, including production capabilities, quality control measures, certifications (such as ISO9001, IATF16949, AS9100), infrastructure, financial stability, and past client testimonials. If some suppliers are hesitant to share customer details, you will need to independently research their experience with similar products.
3. Engaging Local Technical Experts/Auditors:
Employ experienced auditors who are well-versed in international quality standards and Indian manufacturing practices. Consider hiring Indian technical experts with specialized knowledge of your industry and Casting/Fabrication/Machining processes. Their expertise can offer valuable insights during the vetting process and audits, leveraging local knowledge to identify qualified suppliers and navigate cultural nuances effectively.
4. Factory Audits & Facility Visits:
a) Pre-qualification Audit: Start with an initial audit to evaluate the supplier’s capabilities, infrastructure, and quality control procedures. This can be conducted virtually if local resources are unavailable. This step helps to narrow down your shortlist of potential suppliers.
b) Technical & Process Audit: After shortlisting suppliers, conduct a comprehensive audit of their technical competencies and process adherence. This involves:
Production Facilities: Assess their equipment, inspection processes, maintenance practices, and overall production environment.
Quality Control System: Review their quality control procedures, inspection methods, equipment calibration and documentation to ensure they meet your standards.
Safety Protocols: Evaluate their safety practices and compliance with relevant regulations.
c) Facility Visit: Visiting the supplier’s facility is crucial before making a final decision. This visit allows you to evaluate their understanding of your requirements and their ability to deliver the project. You can observe the equipment in operation, witness quality control procedures firsthand, and assess the overall work environment. Additionally, meeting key decision-makers provides insight into their long-term goals and how well they align with your needs.
Remember, successful supplier sourcing and auditing require collaboration, transparency, and a commitment to establishing long-term relationships, extending beyond the common practice of mere quoting exercises.
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