INMETRO Certification and Supply Chain Strategy
Segment: safety products
Context:
The client identified an opportunity to enter a niche market by developing a hydraulic product that would complement their existing portfolio of safety products. Although this opportunity seemed promising initially, significant challenges soon arose:
Challenges:
1. Supplier Costs: Initially, there were suppliers available for importing the finished product, but their prices were not feasible compared to domestic manufacturers.
2. Investment and Timeline for Factory: The capital cost and the time required to build a national factory from scratch for manufacturing the entire product were prohibitive, and the client had little experience in manufacturing operations.
3. INMETRO Certification: It was necessary to obtain INMETRO certification, which due to a lack of technical knowledge in the product and regulatory process, created insecurity for the client.
Solution
After a detailed analysis of the client's situation, a strategy was implemented to develop a mixed supply chain, involving imports and the client's own manufacturing. The solutions were as follows:
1.
Import of Raw Material:
The import of part of the raw material from China was established. Sigma-Y, with its expertise in supply operations and quality assurance in Asia, has been able to provide favorable payment terms, competitive costs and risk management through rigorous quality management processes.
2.
Local Assembly and Manufacturing of Parts:
Essential parts of the product were manufactured in Brazil, with customer support in the development of quality processes and product requirements aligned with INMETRO certification regulations. This ranged from specification of the final product and development of test equipment for product approval, to the delivery of the first batches.
3.
Final Assembly in Brazil:
Final assembly took place in Brazil, ensuring that the product passed all quality tests in accordance with national standards. Additionally, the customer received support in creating product documentation and technical material such as user manuals and required product markings. This operation was planned with maximum efficiency to mitigate risks for the customer and ensure compliance with INMETRO regulatory requirements.
4.
INMETRO Certification:
Sigma-Y guided and managed the client's INMETRO certification process from the beginning, ensuring the best choice of laboratories, preparing technical product documentation, preparing the team that would receive audits from the regulatory body, among others.
Results
• 1 year after launch: the client was recognized by technical professionals of the industry, in a relevant award in the segment, as one of the three best products in the category in which it competed.
• 2 years after launch: the client consolidated its position as the largest company in the niche market for which the product was developed. Initial sales expectations were exceeded and the new product developed reached the mark of 25 to 30% of the customer's average monthly revenue.
Impact and Lessons Learned
This case study highlights how a well-planned supply chain strategy and the right approach to INMETRO certification can overcome significant challenges when introducing a new product to the market. This resulted in a positive impact, with recognition of product quality and substantial growth in the client's business. Lessons learned include the importance of supply chain flexibility and in-depth knowledge of local regulations for success in competitive markets.