I have been working for a supplier in the automotive sector for over 25 years, taking part in annual audits or being involved in new inquiries. So here's a little story:
A company called Mahle came to my boss last September and said they would like to establish a local supplier for their radial shaft seals that not only enables shorter distances, but also meets their necessary quality requirements and of course offers all of this for a reasonable price. According to Mahle, the targeted annual delivery quantity was 2.5M parts. We calculated everything and decided to tackle the project. After the necessary material and the special tools required for it were ordered (delivery time: 6-8 weeks) and the corresponding quality requirements were met, an initial test production of 1000 parts could finally begin in December. After extensive quality control, the 1000 parts went for external further processing (vibration grinding + surface treatment). 2 weeks later they came back to go through another incoming quality inspection before they could be sent to Mahle. Mahle, for its part, carried out an incoming quality check and then inserted the parts separately into their automated production. The test went satisfactorily and the first price negotiations began. An agreement was reached at the beginning of March and Mahle took the project to the next level and increased the delivery quantity to 50,000 parts. These now go through the same manufacturing process (as already mentioned) with increased duration. This second qualification delivery is expected to be completed in June (if everything goes smoothly). Afterwards, renewed price negotiations and hopefully the conclusion of a contract for the full annual delivery quantity.
If both companies agree, nothing should stand in the way of full production starting in September. That would be an exemplary process!
You could just as easily swap the name for Bosch, Mercedes, Kyocera, VW or Thermik. The process would basically remain the same. However, the difference is often made by many small adjustments or changes along the way, which are not always in the hands of the supplier. We have been waiting for a confirmation of an order for „just“ 500,000 parts regarding Thermik for over a year now, even though the sampling process has long been completed. (Bosch sometimes even took longer)
And that‘s the standard procedure
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