Audit tour of suppliers: CNC24 examines the potential of the manufacturing market in India
The online manufacturer of precision components CNC24 relies on a global supplier network to provide its customers with a customized procurement strategy. To this end, Co-Founder and Chief Production Officer Marlon Gerat personally checked the status of Indian manufacturers on an audit tour and identified the strengths and weaknesses of local suppliers. The conclusion: a market with surprisingly high quality standards.
The smart manufacturer CNC24 offers its customers a network of more than 500 verified suppliers from 22 countries. The suppliers are checked via a sophisticated on-boarding process, web audits and personal visits. In order to offer each customer the best individual sourcing strategy – be it in Germany, Europe, China or worldwide – CNC24 plans to further distribute production globally and thus minimize risks in component procurement. Part of this global sourcing strategy is the development of new markets: India, for example, is increasingly becoming the focus of attention.
In a survey of 241 customers conducted in 2022, 4.6% cited India as their country of reference, while 12.9% see potential in the Indian market. CNC24 already has a manufacturing network in India in the industrial centers of Pune and Bangalore. In December 2022, Co-Founder and Chief Production Officer Marlon Gerat made the trip in person to evaluate the situation on the ground. His audit tour took him to 23 existing manufacturing partners and new suppliers, including Zenith Precision Private Limited, and paints an interesting picture of the Indian market.
Strengths and weaknesses of Indian suppliers
India has well-equipped contract manufacturers and covers a wide range of manufacturing processes. A current trend in Germany and Europe shows that manufacturers are so well utilized that they are no longer even submitting offers for requests for components with high complexity, small quantities or materials that are difficult to process. India is a real alternative here: for casting material, for example, a sandy material that wears out the machines, India is the market leader and serves customers worldwide. There is a need to catch up in terms of logistics – while in the export country China, near perfection is achieved and components can sometimes be sourced just as quickly as in Europe, logistics strategies must first be developed and established in India. There is also a lack of resources and capacities – the challenge over the next few years will be to develop intelligent logistics solutions. “The manufacturers are highly motivated, the quality standard, the expertise and also the professionalism of the people convinced me,” summarizes Gerat.
About CNC24:
CNC24, a brand of CNC24 GmbH, is a digital B2B procurement platform through which individual precision components can be sourced transparently and efficiently. Manufacturers from 22 countries produce the mechanical components individually according to customer specifications. The manufacturing processes offered by the leading online marketplace for mechanical engineering include turning, milling, sheet metal processing and additive manufacturing. With its innovative platform solution, the technology company creates a transparent process for the procurement of production parts and digitalizes the value chain through to a fully automated procurement process. Thanks to its global network of suppliers, the company can guarantee free capacity, high material availability and on-time delivery of components at all times. For quality control, all parts undergo an additional inspection process in the in-house measuring center before they are delivered. CNC24 was founded in 2019 by co-founders Willi Ruopp and Marlon Gerat. The start-up serves all industrial sectors with a need for production parts – from special machinery and plant engineering to IOT, medical, testing and measurement technology. Its customers include well-known companies such as SIEMENS, DIEHL Group, Qualcomm, KRONES AG, Carl Zeiss, Vishay, BASF, CERN, FANUC, Syntegon, Jonas & Redmann, the Max Planck Institute and Fraunhofer.
More information at: www.cnc24.com/
Press contact:
Alina Chekaibe
schoesslers GmbH
+49 151 6296 2435