In conjunction with MAGNET, WIRE-Net has been conducting meetings to acquaint local manufacturing suppliers with OEM and Top Tier companies. The New Markets Initiative or NMI is a process to bring companies, who had found success in previously traditional markets and supply chains, like automotive, into new markets based not on product, but the capabilities of the company – that is, process capabilities which will allow them to move to new markets with little or no redesign of a company’s business model, machinery or staff. The biggest change we find is in attitude. The premise is, if you have CNC capabilities and are serving one market, you stand a chance, with little redesign, to supply that capability to another market. In the course of developing the initiative we came across concepts and principles to consider while on the road to moving into new markets:
Low Volume High Mix in New and Emerging Markets – the newer and emerging markets, like Medical, Energy and Aerospace, are seeking high quality parts in small quantities.
There are Macro Supply Chains and Micro Supply Chains – one of our biggest findings is that OEMS own the macro supply chains and have a very rigorous process for suppliers often requiring ISO certification, but top tier companies own a micro supply chain and often can bring a smaller companies product in under their certification. This opens a large area for smaller companies to play.
Quality is Everything - If you can supply in a micro supply chain, you still need to show quality. This does not have to be ISO, but some form of QMS needs to be in place to work with a top tier company. While to some this may seem daunting, much of what a top tier is looking for already exists in most companies and it is merely a process of documentation in order to qualify.
While new market entry is a great opportunity, only healthy companies should consider making the journey – it is not a stop gap measure for companies on the brink. What lessons have you learned from new markets experience.
