Strong partnership cuts global lead times

Japanese Ferrotec has become a model-like partner in the strategy of sourcing internationalisation and in the localisation of modules in China to supply Sidel’s plant in Beijing as well as the European plants.

An important part of Sidel’s strategy during the last few years has been to closely monitor and evaluate all suppliers. Cutting lead times, securing the right specifications and initiating new price negotiations allow Sidel to offer a more competitive product portfolio from many aspects. In addition, a close cooperation with suppliers results in better product development and increased quality performance.

In China, it was decided to develop a strong partnership with a strategic supplier, to support the set-up of the Sidel plant in Beijing in 2008. The choice was Ferrotec, a Japanese company with 4,000-plus employees and two manufacturing sites in China; Shanghai and Hangzhou. Certified for both ISO 9001 and 14001, this supplier was chosen for its rigorous command of the manufacturing and control processes. The contract runs over five years, covering GUPM’s (large mould support units) and front and rear modules. These are some of the most technically complicated subassemblies in Sidel’s entire production.