Penang, Malaysia - November 22, 2019
The ESCATEC Group considers its commercial relationship with its suppliers to be more than straightforward Buyer-Seller transactions. The Group views its suppliers as vital business partners – extremely important in maintaining the Group’s competitiveness, customer satisfaction and ensuring business success.
The relationship with suppliers is not one-sided. They are business entities in their own right which need to make profits in order to thrive and the Group recognises this. At the same time, the Group requires flexibility, accommodation to changing requirements and cost efficiency from its business partners. Thus, the aim of the Group is to achieve a “win-win” balance fair to both parties.
To strengthen our ties and business linkages with business partners, the Corporate Procurement Department organises an annual Supplier Conference, usually at the end of the year. This year the Conference took place on 22nd November at the auditorium in our HQ & main facility in Penang.
Some 55 representatives from various business partners throughout Asia attended, as well as representatives from all ESCATEC’s business units in Malaysia and Switzerland. The Conference was officiated by Group COO Juha Arola and Director of Corporate Procurement Steven Lim.
Juha and Steven briefed the Conference on the Group’s plans and the current trends in the global EMS industry, with a further analysis of the possible opportunities created by the ongoing US-China Trade War.
They noted that ESCATEC is ramping up its business development efforts and intends to grow strongly in terms of customers and product range. Several new customers are already in the pipeline to begin production, and therefore the Group will require greater volumes and sales support from its partners. Greater cost efficiency from our business partners is also very important to enable ESCATEC to bid strongly for new customers.
Our Corporate Regulatory Compliance Manager, Benjamin Khor, next took the stage to brief the participants on ESCATEC’s policy requirements in relation to REACH (Regulation for Registration, Evaluation, Authorisation, and Restriction of Chemicals), ROHS (Restriction of Hazardous Substances) and the source of Conflict Minerals.
As a good corporate citizen and member of the United Nations Global Compact (UNGC) - and in compliance with its obligations under REACH, ROHS and Conflict Minerals - ESCATEC requires all its suppliers to adhere to the relevant standards and to submit regular compliance reports. As an example of the “win-win” relationship which ESCATEC practises, Benjamin highlighted the measures which the Group has implemented to assist its suppliers to comply with these requirements.
Specifically, ESCATEC has engaged Assent Compliance – a Canadian supply chain data management specialist – to implement a comprehensive compliance & monitoring programme that offers 24/7 support in multiple languages to educate, guide and assist our suppliers towards achieving and maintaining compliance. Additionally, the Supplier Portal on the Group’s website carries information on what is required and Benjamin himself is available to suppliers for consultation.
“We are trying to make it super easy for you to be compliant. All you need to do is ask for assistance,” stated Benjamin.
The next presentation was by Nathan Ramalingam, Business Development Manager – SE Asia and Australasia. He went into more detail on the Group’s business development plans, with the main takeaway being that ESCATEC’s target is to move into the ranks of the Top 50 EMS companies globally by the year 2023.
Steven, our Director of Corporate Procurement, and the GM of ESCATEC Electronics and ESCATEC Medical, Lambert Schutters, also briefed the participants. Steven’s presentation focused on the Group’s supply chain performance matrix while Lambert touched upon the need for flexibility from business partners to enable operations to cater to customers’ changing requirements or shifts to production timelines.
The Grand Finale of the Conference was the presentation of the inaugural ESCATEC Supplier Awards, as a token of appreciation to the business partners who have been key to our success.
The awardees are: Omni Prestige Sdn Bhd (Plastic Resin category), Powertage Electronics Sdn Bhd (Electromechanical category), Future Elec. Inc. (Dist.) Pte Ltd (Electronics category), Eline PCB Sdn Bhd (PCB category) and Evergreen Electronics (HK) Co. Ltd (Broker category).
The Conference ended with an opportunity for networking and a nice lunch for everyone.
We look forward to welcoming our business partners and expressing our appreciation once again at next year’s Supplier Conference.
Top Image: The awardees of the inaugural ESCATEC Supplier Awards 2019
Photo 2 below: Director of Corporate Procurement Steven Lim welcoming the participants
Photo 3 below: A view of the Conference