Purchasing Strategy at Teknia Group

José María Sánchez reviewed the history of the Teknia Group, from its foundation in 1992 to the present with 22 plants, 17 of them in Europe (9 in Spain) and five technologies (bar machining, tube forming, stamping, plastic injection and high pressure aluminum injection. "In Europe, we can manufacture all our technologies in at least two plants in constant collaboration with our R&D team and development centers for technology transfer with an increasing focus on new plug-in and electric mobility. We are characterised by our flexibility, agility and rapid adaptation to the market, which has allowed us not to stop supplies to our customers, despite all the adverse situations that have occurred in recent years. We have grown over the last 30 years, largely through acquisitions, following following our clients whenever they have asked us to do so in multiple markets, such as the United States or Serbia”.

“The strategy is focused on the highest quality and excellence in supplies, providing us with automation and control of processes solutions, pursuing the highest levels of efficiency and productivity with zero defects. We are clear that now, especially in Spain, increasing competitiveness involves automating the maximum possible processes in production in order to grow sales, maintaining the current level of personnel. For this reason, one of the most relevant KPIs in the monthly review is the cost of a part per person, taking into account that we think that vehicle production volumes in Europe are going to gradually normalize and Teknia is very well positioned there, with its five technologies”.

“On the other hand, there is a clear commitment for the sustainability in the company, which extends to purchasing criteria. Currently, in terms of the circular economy, we are focusing on increasing the use of recycled materials in our components. We also seek to reduce emissions in our manufacturing and currently, for which, for example, we are studying the installation of solar and photovoltaic panels in two plants or the renovation of the machinery fleet to improve efficiencies, among other measures. All counting on the fact that we are a very active part in the manufacturing of the already aforementioned new mobility through components for both OEMs and Tier 1".

“On the other hand, digitisation is essential and, specifically, in the Purchasing  function. We are working on the implementation of tools for total digitalization in our plants and we have already made great strides on this issue. This trend provides many benefits, but above all, increased efficiency, benchmarking with better traceability of information and interdepartmental organization".

“The succession of concatenated crises (pandemic, microchips, port blocks, war in Ukraine) has made us rethink our supply chain model, with a high percentage of globalization in distant countries. The Purchasing department is clear that everything, for example, electronic components, will not be able to be located, but it is in favour of bringing suppliers closer as far as possible and helping our suppliers to be competitive, saving costs and minimising risks. In our case, we have relocated molds that we acquired in China and now we also do so in the Iberian Peninsula. We look for double sources of supply of raw materials, whose recent problems have been solved and we do it in some cases in the Iberian Peninsula”.

“Teknia is characterised by a solid financial profile through strict investment, debt and working capital management to maintain its good financial situation and its ability to adapt. We drive the positive impact of the company's value by increasing its value to all stakeholders, including investors. Teknia's corporate strategy and priorities are in line with environmental, social and governance (ESG) criteria. Knowing how complex the automotive value chain is, we have already involved our suppliers so that they have the same expectations as us regarding ESG objectives. For example, in the absolute respect of human rights and insistin again in the acquisition of recycled materials whenever possible”.

"As a global supplier, we carry out purchases of a global nature to supply ourselves with raw materials for plastic, tubes and straps, aluminium, bar machining, capital goods (which will grow in 2023), auxiliary materials, services, components and packaging”.

“The main objectives of our Purchasing strategy are focused on negotiating and getting the lowest possible prices with reliable suppliers, quality and service; negotiate and obtain the best logistics conditions just in time: consignment deliveries and regulatory warehouses; negotiate and accept the best payment conditions complying with the regulations of each country; rigorous stock control; and promotion of sustainable purchases: our commitment as a company to sustainability leads us to promote the use of recycled materials, involving our suppliers in line with customer requirements, reaching 100% in cases such as second-fusion aluminium”.

Presentation published in AutoRevista 2.375 issue

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