At es eam that creates valu
HOW WIK GROUP POWERS ITS PROCUREMENT THROUGH SUPPLIER RELATIONSHIPS PROJECT PARTNERS
ife
anufacturing
At es eam that creates valu
HOW WIK GROUP POWERS ITS PROCUREMENT THROUGH SUPPLIER RELATIONSHIPS Daniel Chua, Head of Global Sourcing at WIK Group, discusses how supplier relationships are the cornerstone to success... WRI T T EN BY PRODUCED BY 2
D al e Bent on Gr eg Chur c hi l l
3
W
hen we talk of a procurement
on both internal and external relation-
transformation, we often focus
ships and what’s key to any relationship?
on a shift in process or the
Communication. By having clear, open
implementation of new technologies and
and constant communication across the
platforms in order to embrace a much
entire organisation and across your entire
more agile and “leaner” operation. More
supply base, only then will you truly
recently, organisations have started to
begin to see the real value that’s hidden
realise that all the best laid plans require
throughout the supply chain and procure-
the right talent and the right skill sets
ment ecosystem.
throughout the organisation, not just the
“Relationship management, for me, is
procurement function, to be able to fully
key,” explains Daniel Chua, Head of Global
realise the savings potential or the inno-
Sourcing at WIK Group. “I think that is one
vation and true value that procurement
of the very important factors and by rela-
can bring. But take it back even further,
tionship management I mean not only to
procurement and supply chains of all
the suppliers but also to my internal stake-
sizes, scope and complexities, are built
holders.”It’s also about understanding
4
what we are going to be able to do to
responsible for creating and develop-
get support from suppliers, both finan-
ing hundreds of system solutions and
cially and non-financially. By non-financial
producing millions of products world-
support I mean in times of crisis, like right
wide. Perhaps most notably, WIK Group
now with Covid-19. If you have a good
has evolved into a global, full-service
relationship with suppliers, they actu-
development and manufacturing partner
ally allocate more resources to support
to many leading international brands. By
you. Procurement is all about relationship
its own admission, WIK Group believes
management that you build for a long
that “corporate challenges can only
time. You get returns when it is needed,
be managed by leveraging synergies
not simply on a daily basis.�
between capable people and financially
Founded in the early 50s, WIK Group
solid partners, driven by responsible
is a privately held German contract
sustainable change and innovation. We
designer and manufacturer (ODM/OEM/
focus our resources on personnel devel-
CM) for electrical appliances and devices.
opment and process excellence based on
Fast forward to 2020 and WIK Group is
a value-creating company culture.�
5
Building a sustainable enterprise for future generations Everything Industrial Co., Ltd. (ETI) was founded in 2001 in Shenzhen, China. With 20 years development, ETI now has manufacture plant in Suzhou, Shenzhen, Malaysia and service branch in Japan, North America, Europe for marketing, R&D, logistics and supply chain support. ETI dedicates in the die cut, precision metal components as well as the advanced surface treatment who serves to top players in consumer products, medical products and appliances.
VISIT OUR WEBSITE
Address: Shenzhen Everything Industrial CO.,LTD. No. 6 HuaFa Rd., XinZhuang community, Matian Street, Guangming District, Shenzhen, Guangdong province. T: 0755-29822598 www.etigroups.com sales@etigroups.com
As part of this corporate belief, WIK
Vodafone and Phillips, Chua was brought
Group embarked on a procurement trans-
in to deliver real change. Perhaps most
formation journey that will realign the
importantly for Chua, upon entering the
procurement function to collaborate more
business back in 2019, he wanted to make
with wider business units in order to be
it clear that the change he sought was not
able to generate greater cost savings,
a change of personnel.
unlock better efficiencies and drive inno-
“I wanted people to know from the
vation all while continuing to deliver its
outset that I’m not here to fire anyone. I’m
products and services to the highest
here to try to work with all of you, to bring
possible standards. This is where Chua
in and collaborate on new ideas together
comes into the picture. With a career that
with my experience from the bigger, inter-
has seen him take on senior procure-
national companies,” he says. “Let’s try to
ment roles for some of the leading multi-
work together. I needed to instil that mind-
national companies in the world, such as
set into my new team, because there are
7
GENBYTE TECHNOLOGY
W W W.GE N BY T E C H. C O M
DESIGN, MANUFACTURE, and QUALITY Founded in 1999, from early development in PCBA manufacturing to providing world-wide electronics design, production, and services. Manufacturability-led Sketch-to-Scale, Genbyte proudly offers OEM, ODM, JDM, EMS to global customers. Global Scale and Regional Connections – Headquartered in Shenzhen, China, we currently operate 4 manufacturing sites across Asia: China, Vietnam, Indonesia, and Thailand, Being one of the leading PCBA providers, we aim to accommodate your needs anywhere. Through well-established global and local logistics and supply chain, we want to make great products that create value and improve life qualities. Reliability and Compliance – Sustainability remains important to Genbyte and how we operate. We want to act in accordance with social principals, ISO standards, and many others, and our compliance team audits every action at all levels. Technology and Innovation – Over 20 years of accumulation and hard-working, we together with a team of approximately 200 engineers continue to explore areas including medical devices, automobile appliances, and many others.
JANE.TANG@GENBYTECH.COM GAVIN.FANG@GENBYTECH.COM
+86-13728917355 +86-13691901051
NO.4 BUILDING HUAHONG XINTONG INDUSTRIAL PARK, GENYU ROAD AND NANMING ROAD INTERSECTION, YUTANG STREET, GUANGMING NEW-DISTRICT, SHENZHEN, GUANGDONG, P.R.CHINA
Better Senser Better Life
Ampron—20 years of professional sensor manufacturing
Shenzhen Ampron Technology Co., Ltd. oxygen sensors, temperature sensors, accelwas established in 1999. It is a company dedicated to providing multi-dimensional sensing and control solutions for temperature, pressure, humidity, air, etc. in the fields of automotive, smart home, smart medical, Internet of Things, industrial control, etc. Level high-tech enterprises. The main products include pressure sensors, T +86-755-8969 5922 M sales@ampron.com 8
WIK GROUP
eration sensors, PTC thermistors, NTC thermistor and other professional, precise, high-performance smart sensor products. It is one of the few domestic, independent master chip manufacturing and packaging process core globally renowned smart sensor manufacturer of technology.
CL I CK T O L E A R N M OR E
E sales@ampron.com
www.ampron.com
“PROCUREMENT IS ALL ABOUT RELATIONSHIP MANAGEMENT THAT YOU BUILD FOR A LONG TIME. YOU GET RETURNS WHEN IT IS NEEDED, NOT SIMPLY ON A DAILY BASIS” Daniel Chua, Head of Global Sourcing, WIK Group
going to be changes. At the same time,
going to be valuable for WIK,” says Chua.
there will be a lot of coaching required
“I want everyone to adopt a mindset of
towards a different way of thinking around
thinking outside the box and being far
procurement. Simply put, the only two
more vigilant and experimental in terms of
things that are normally discussed with
bringing different things to the table.”
suppliers are either cost or quality. End
To highlight his point further, Chua
of story. We need to explore the relation-
points to a more traditional approach to
ships further and so I want them to look at
the bill of materials (BOM). Previously,
it from a different angle and in much more
and much like many procurement func-
depth.”
tions, WIK Group would have a team
In order to achieve this, Chua would
focused entirely on BOM. Chua wants
accompany his team on supplier meet-
these people to input the BOM numbers
ings and gain an understanding as to the
but also to be able to think about those
way in which these supplier relationships
numbers, to analyze them and to under-
are handled. Only then, he feels, can he
stand more about the materials and parts
leverage this supplier base for greater
themselves. “Then they can ask and ulti-
insights which will then translate directly
mately answer the question as to why we
into greater relationships and ultimately,
are buying these parts at this particular
greater savings. “I’m slowly coaching my
cost?” he says. “Once upon a time that
teams that you need to bring in ideas
was a question that would be passed onto
about what the suppliers are doing for
the sourcing teams and forgotten about
other customers and how this is also
until next time. Now, we have people 9
asking more questions and understanding the business more.” Changing a mindset and a culture within a business is no small feat, particularly when that business has been extremely successful operating in a specific way for a long time. This is a challenge that Chua has faced and will continue to face throughout this journey. It’s easy to say on paper that you will come in and instil this innovative cultural mindset that will guarantee success and cost savings, but being able to achieve that is a different story. Chua is a firm believer in being able to walk the talk and being able to practise what he preaches. Every step of this journey, every decision he makes and process he changes, he does so with purpose in order for both his people and his management to be able to see real value and benefit from those changes. Any feedback he receives from above he shares with each and everyone of his team members. “It’s about reinforcing the notion that; all their efforts and hard work are being recognized by senior management. Not just by me,” he says. “This is important in building up a shared mindset so that we work as a team and move away from working independently in silos. We work as a team and have shared responsibilities because ultimately, those 10
responsibilities will impact the entire business, not just one particular function.” “We can’t operate to an out of date mindset of; once you’ve done your bit you move onto something else. If a mistake is made in your processing or it comes from the sourcing engineers, if you spot it and fix it you’re saving two people or even more. We’re working together and for one another. This is incredibly important for what I want WIK Group to achieve.” This is also key in establishing a sense of integrity for procurement. As with many organizations the world over, procurement has changed dramatically in the eyes of senior 11
Established in 2002, the Shenzhen company manufactures high-quality spring, shrapnel and wire forming products in the automotive, medical, electronic and artificial intelligence industries for clients all over the world.
C L I C K TO D I S C OV E R M O R E
www.jltcn.com cty@jltcn.com
专致于流体控制 Specialized in fluid control
Specialized manufacturer of fluid control components
Environmental
Safe
Intelligent
Innovative
management and in the eyes of the busi-
complete the tasks but to complete them
ness. Chua and his team have witnessed
in a ‘better’ way than others.
this first-hand through this transformation
“The best way that we can see that the
journey. Where procurement was almost a
business now has complete confidence
business add-on, now Chua and his team
in our abilities is that we used to have key
see the other business units coming to
account managers being directly involved
them and wanting to become more like
in almost every part of our process,” says
them. The procurement responsibility of
Chua. “But now, after only six months,
WIK now takes on much more responsibil-
they don’t need to. They have confidence
ity. Historically, tasks would be transferred
in our abilities and they leave us to it as
away from procurement but now the tasks
much as possible.”
are coming into procurement because
As Chua has already noted, relationship
procurement now has the capabilities, the
management is key and as he continues
processes and the mindset to not only
to build competencies and drive change
13
“ I INTRODUCED MYSELF TO EVERY SINGLE ONE OF THEM AND I SAT DOWN AND SPOKE WITH THEM OVER DINNER. OUTLINING WHERE WE WANT WIK TO BE IN THE FUTURE AND THE ROLE THEY CAN PLAY IN THAT” Daniel Chua, Head of Global Sourcing, WIK Group
internally, he must also look further at the way in which the supplier relationships are
and the role they can play in that.” “Again, it’s about better understand-
handled from the supplier’s perspective.
ing the relationships so that we can grow
To best approach this, Chua kept things
these relationships together. Now, you’ll
simple. “After I looked at internal systems
see my team (where possible) travelling
and I looked at improving the way we at
around and meeting with suppliers and
WIK dealt with suppliers, I spent a month
sitting down with them and talking through
travelling outside the business to speak
our strategies and how we can better help
with all of our key suppliers,” he says. “I
each other. It’s all about rethinking what
introduced myself to every single one of
we think about our supplier relationships.”
them and I sat down, I spoke with them
At the time of writing, the world is
and I listened to them. It was about outlin-
currently gripped by the COVID-19
ing where we want WIK to be in the future
pandemic which has and will continue to
14
define and redefine business practices
with regards to that changed mindset and
indefinitely. Risk and crisis management
shared responsibilities,” he says. “How we
is nothing new to procurement, but when
progress relies entirely on everybody’s
discussed it is often theoretical risks and
discipline.”
theoretical worst-case scenarios. As we
This discipline is crucial in reporting a
are currently experiencing a worst-case
process of Resume Work Status that Chua
scenario, businesses are now having to
has implemented, a process in which
act. Chua believes that the COVID-10
WIK can identify and better understand
crisis is actually giving credence to the
how and when its suppliers can return to
changes he has made and will continue
limited or full operating capacity. Given
to make to WIK’s procurement practice.
governmental restrictions and a number
“This situation has actually put us into a
of external factors, each supplier’s
spotlight that shines on us as individuals
status will vary and so the responsibility 15
Brief Introduction 40+ Million Euro investment on factory 20+ Years established 100+ Engineers on R&D 600+ Workers on manufacturing 10+ Industries served 50+ Brands globally cooperated Main Products: Metal intergrated components & assemblies for: Intelligent premium kitchen appliances 5G communication New energy vehicles and accessories Robots Industrial equipment Intelligent security surveillance… Integrating with Mulitple Different & Precise Processes Products and Mold Design / Mold Making / Die-casting / Punching / CNC / Welding / Polishing / Sub-Assembly Extruding / Painting / Powder Coating / Anodizing / Chrome / Laser Engraving All Integrated by XHH C L I C K TO D I S C OV E R M O R E
DONGGUAN JUJIN PRECISION MOULDS AND PLASTICS TECHNOLOGY CO., LTD.
OUTSTANDING PRODUCTS THROUGH THE PURSUIT OF PERFECTION MANUFACTURING • OVER MOLDING • OVER MOLDING TOOL STRUCTURE
C L I C K T O C O N TA C T U S 16 W I K G R• OOn-time UP Excellent Quality Delivery • Quick Response • Thoughtful Service • Competitive Price
“THE BUSINESS AND INDEED OUR CUSTOMERS HAVE THE CONFIDENCE IN US TO BE ABLE TO DELIVER THAT INFORMATION TO THEM IN THE RIGHT WAY SO THAT THEY CAN BETTER UNDERSTAND WHAT’S GOING ON AND HOW WE ARE MANAGING THIS SITUATION IN A WAY THAT WORKS FOR EVERYONE” Daniel Chua, Head of Global Sourcing, WIK Group
rests with WIK’s procurement teams with regards to collecting the right qualitative
operate.” “It goes back to what I said about confi-
data on these suppliers so that they can
dence. The business and indeed our
report back to key stakeholders with the
customers have the confidence in us to be
right insights in order to make the right
able to deliver that information to them in
decisions for the business. “These key
the right way, so they can better under-
stakeholders are external,” explains Chua.
stand what’s going on and how we are
“On a weekly basis we report back to all
managing this situation in a way that works
our external customers about the status of
for everyone.”
the current situations and what is going to
On paper, it seems as though this trans-
impact them and the number of suppliers
formation journey and indeed the meas-
that are working for their products,”
ures that Chua has looked to instil have
“Right now as an example, we are moni-
been entirely pain free. He is keen to admit
toring around 400 suppliers and my team
that this is not the case and that it’s impor-
can tell you exactly how many of those
tant for anyone enabling change to stop
suppliers are relative to just one of our
and look at the pain points you experience
customers. They can also tell you how
along the way a little deeper. “We still have
many of those suppliers are located in
a journey to go,” he says. “But what we are
areas that have different levels of lock-
doing is fine-tuning each and every step
down restrictions and how many can still
of the way so that people can get up to 17
18
speed.” The future of this journey is very bright for WIK Group and Chua breaks that future down into a number of key elements. Firstly, he wants his procurement teams to be producing qualitative data while also bringing more valuable information into the business such as terms of technologies and new forms of supply base back into WIK Group. Ultimately for Chua, it will always be about the people and the relationships. Over his entire career he has always valued the importance of having key relationships built by people with the right mindsets. “What has been and will always be crucial to any form of success that I and WIK experience as part of this journey is that my team trust me in what I’m trying to deliver,” he says. “My team trusts that I’m willing to showcase their achievements and their success to our key stakeholders. What’s also key for me is that I have been blessed with management and senior stakeholders that truly support ideas and initiatives. This will only continue to enable great success for WIK Group from a procurement standpoint now and well into the future.”
19
At es eam that creates valu
www.wik-group.com