Consequent Global: Suppliers are one of Schaeffler's success factors

Supplier Day - Schaeffler honors its best suppliers

Herzogenaurach, (PresseBox) - Schaeffler honored its best suppliers of production materials in Herzogenaurach. Quality, reliability, competitive cost structures, service, innovation and global presence are all aspects in which the 16 suppliers from 8 countries who received the 2012 Schaeffler Supplier Award demonstrate excellence.

As an automobile and industrial supplier, Schaeffler has more than 70 manufacturing locations worldwide that receive production material from around 1250 suppliers all over the globe. 46 of these suppliers who have been carrying out excellent work during the last few years were invited to Herzogenaurach. The 16 best suppliers were chosen from this group during a selection process. CEO Dr. Juergen M. Geissinger and Dr. Gerhard Schuff, Member of the Executive Board for Purchasing, thanked the companies for their excellent work and presented the awards to:

- Amatsuji Steel Ball MFG Co., Ltd., Japan
- ArcelorMittal FCE S.A., Luxembourg
- Baumann Federn AG, Germany
- Brand KG; Germany
- C. D. Wälzholz KG, Germany
- GKN Sinter Metals GmbH Radevormwald, Germany
- Hugo Kern und Liebers GmbH & Co. KG, Germany
- Hupfer GmbH, Germany
- Jiangyin Xingcheng Special Steel Co., Ltd, China
- Johs. Förderer Söhne GmbH & Co. KG, Germany
- K.D. Feddersen & Co., Germany
- Massucco Industrie S.p.A., Italy
- Oskol Electrometallurgical Kombinat, Russia
- Porite Taiwan Co., Ltd., Taiwan
- SFS Intec AG, Switzerland
- Uchiyama Manufacturing Corp., Japan

In his presentation, Dr. Juergen M. Geissinger talked about the complex boundary conditions and the growing requirements these conditions place on Schaeffler's purchasing management and its suppliers. "Ever shorter reaction times, shifts in the markets, rapid technological change, complex supply chains, our wide product range, and our global presence with new and growing manufacturing locations demand a rethink, adjustments to the organization, and uniform processes worldwide. Localization is progressing further in the growth markets. These are all factors to which we and you as our suppliers must react."

The highest growth rates in the coming years are expected in regions such as Asia and North America and not in Europe. This means that the same high standards apply in all locations in all regions. Coordinated, uniform processes, transparency regarding information and material flows, highly-qualified employees and extensive training at all locations in all regions is required to ensure we provide the same high quality and the best service all over the world. The objective according to Geissinger is to increase added value locally. This means Schaeffler will increase the involvement of local suppliers in future and integrate them into its global network. A reliable network of suppliers coordinated both locally and globally with optimized processes is an important success factor. Suppliers must be prepared for this according to Geissinger, and they must be able to supply purchased parts, raw materials, and services at the required quality and in the required time frame at competitive prices in all regions.

Schaeffler will have purchased manufacturing material, and steel in particular, components, and modules at a value of around €3.5 billion this year. In addition to challenges related to local availability, the complexity of systems, modules and components in particular is also increasing further. This calls for technical knowledge, continuous further development and growing expertise on the part of our suppliers. Schaeffler is therefore seeking to consistently involve certain suppliers as early on as the beginning of the product development phase in future. This "cooperative and active relationship between suppliers and customers for mutual benefit" was an aspect Dr. Gerhard Schuff, Member of the Executive Board for Purchasing, highlighted in his speech. "This involves further optimizing global processes and the organization", he continued. We are pursuing an integrative approach based on reciprocity - learning from customers, but also learning from suppliers. Both apply, since our employees' knowledge and the strengthening of their expertise is the success factor for our competitiveness on a global scale."

The Schaeffler Supplier Awards for manufacturing materials are presented every two years - alternately with the "Premium Supplier Awards" as part of the purchasing cooperation with Continental AG.

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Schaeffler AG

Schaeffler with its product brands INA, LuK and FAG is a leading provider of rolling bearing and plain bearing solutions and of linear and direct drive technology, as well as a renowned supplier to the automotive industry of high-precision products and systems for engines, transmissions, and chassis applications. The globally active group of companies generated sales of approximately 10.7 billion euros in 2011. With approximately 76,000 employees worldwide, Schaeffler is one of the largest German and European industrial companies in family ownership. With 180 locations in over 50 countries, Schaeffler has a worldwide network of manufacturing locations, research and development facilities, sales companies, engineering offices, and training centers.

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