How our Connectors helped India’s leading motorcycle maker cut costs & improve supply chain efficieny.
The Challenge:
Amidst growing concern for environment protection and pollution control, Government of India had speeded up the implementation of new emission norms – the BS VI (roughly corresponding to Euro VI) – and announced the deadline as April 1,2020.
BS VI emission norms in India required a major technology jump, especially for the two-wheeler manufacturers. Existing carburettor-based technology needed to be upgraded to the Electronic Fuel Injection (EFI) technology.
While the technology upgrade ensured that bikes in India would now have higher levels of safety and many more features, it also meant a major increase in cost. In a price sensitive market driven by low cost and high volumes, such price increase was a major challenge. More electronics meant more connectors per vehicle. Many of these high-quality connectors were expensive and needed to be imported. Earlier, most connectors for two wheelers were being supplied by connector manufacturers located within India and many Tier 1 suppliers of wire harness had limited experience of procuring these parts on such large scale from global manufacturers located in Europe and Japan.
India being the largest manufacturer of two wheelers in the world, the demand for connectors was high, but the ultra-low prices demanded by Indian customers was a challenge for many global connector companies. In the uncertainty surrounding new market launches, it was also critical to have supply chains in place that were flexible enough to meet the wild swings in demand for components. The average lead time for many of the critical connectors remained more than six months.
The Solution:
Enerdyne has been working closely with most automotive OEMS in India for the past many years with excellent relations with all TIER 1 companies supplying the wire harness assemblies. Enerdyne had the perfect solution ready for the customer who are one of the world’s largest motorcycle companies and counted amongst India’s top 5 manufacturers of two wheelers.
Beginning early from 2018 onwards, Enerdyne began serious work with Hulane Associates Inc – Taiwan’s biggest automotive connector and terminal company – as their Indian sales partners. Hulane has more than four decades of manufacturing experience that could ensure the required quality levels. Qualified, well equipped labs meant that connectors systems could be tested and validated to all global automotive standards. With manufacturing facilities located in Taiwan, China and Vietnam, lower costs could be achieved. Furthermore, Enerdyne’s local warehouses in India could maintain ready inventory and ensure quick, flexible deliveries at all times.
Enerdyne’s sales team comprises connector specialists who worked closely with the OEM’s R&D and Vendor Development team for more than 2 years to help identify and then test, validate and get approved a set of connectors for applications such as fuel pump, purge valve and throttle position sensors.
Once the connectors were technically qualified, Enerdyne focussed on managing the supply chain, collecting customer forecasts, and keeping sufficient quantity of parts in local inventory. The parts needed to be ordered well in time for the models rapidly being launched in the market.
The motorcycles have been in mass production since January 2020 and the supplies maintained by Enerdyne have been adequate. In fact, the supply chain remained robust even during the worldwide disruptions caused by the global pandemic and did not cause any delay when customer resumed normal production levels.
Enerdyne is also similarly working with other major two-wheeler manufacturers in India, offering connector systems that are a perfect solution for an industry facing intense cost pressure and looking for a more diversified base of qualified suppliers.