Techtronic Industries Vietnam continues to promote the connection with local industrial support suppliers
On August 25, 2023, the Department of Industry and Trade of Ho Chi Minh City (DOIT), in coordination with the Management Board of the High-Tech Park (SHTP) and the Management Board of Export Processing Zones and Industrial Parks (HEPZA), organized the Sourcing Fair Supporting Industries 2023 (SFS 2023) conference. Techtronic Industries Vietnam (TTI) is one of the major FDI enterprises that participated in direct connection and shared opinions for the development of domestic supporting industries suppliers.
Connecting opportunities for Vietnamese industrial support businesses to participate in the global supply chain
After 5 years of organizing, the Industrial Support Supplier Conference has attracted 96 FDI enterprises and end-to-end industrial product manufacturers, connected 370 city-based and provincial industrial support enterprises with suitable supply products, and facilitated 1,320 direct one-on-one meetings at the conference. Processing partnerships have also been formed between support industrial factories and large-scale FDI enterprises and industrial factories, contributed to the formation of a network of domestic suppliers with good supply capacity, effectively attracting investment and promoted sustainable domestic industrial development.
According to Mr. Le Huynh Minh Tu, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, the conference is organized to create conditions for industrial support enterprises to implement outsourcing contracts, enhance access to partners, domestic and foreign industrial production enterprises, investors, expand markets, and gradually participate in the global supply chain.
Supporting the development of domestic industrial support suppliers.
Joining the conference as a leading FDI enterprise in the Cordless Tools industry, TTI aims to further connect and expand collaboration opportunities with local suppliers to help local suppliers become partners in TTI’s operation and create a positive impact in the development of local supply chain ecosystem.
Ms. Sabrina Anh Tran - Purchasing Director of Techtronic Industries Vietnam, shared that over the years, TTI has collaborated with Center for Supporting Industries Development (CSID) to search for and build a list of suppliers in Vietnam, and has successfully found many domestic suppliers that meet TTI’s requirement. TTI is always open to connecting with new suppliers and constantly assessing projects transferring to Vietnam to ensure we have enough capacity to support our VN factory growth. One of our focuses at the time is on finding suppliers for metal components, machining, metal stamping, die casting, engine parts, etc., to support the expansion of production for business units and TTI's product categories in Vietnam.
"In terms of supplier scale, we are seeking suppliers with the ability to integrate vertically-oriented industrial processes to support multiple stages and assembly production processes. This will help suppliers control the quality of all processes as well as ensure competitive costs”, added Sabrina Anh Tran.
In the context of disruptions following the Covid-19 pandemic and the changing global economic landscape, TTI not only prioritizes business goals but also provides various solutions to support local suppliers in facing challenges related to cost optimization, service quality enhancement, and cross-cultural communication when working with multinational enterprises.
TTI have an OPEX team, Quality management team and Supplier Development team to assess, help suppliers for improvement in specific manufacturing areas and upgrade the local suppliers to the level that is in line with international standards. To help suppliers deliver quality products with competitive price to client, TTI work with suppliers to review the overall cost structure in quotations and analyze the cost breakdowns of the parts to provide necessary support, especially with TTI’s wide network of raw material sources which can be introduced to suppliers if their current source is not as competitive.
In addition, clear and transparent communication is an important factor that TTI expects from suppliers at every stage of the supply chain. If suppliers meet this requirement with accurate information, there will be more opportunities to develop collaboration and minimize risks. This can only be achieved if suppliers are willing to share concerns, difficulties that need support, as well as solutions that TTI can bring to ensure mutual success.
TTI also pays great attention to the sustainability standards of its suppliers. TTI’s Social & Environmental Responsibility Compliance Program is rolled out to manage all our suppliers around the globe to ensure ESG practice of potential partners are aligned with the company policy and global standard. In Vietnam, TTI is also collaborating with local suppliers to implement various environmental protection initiatives, aiming to work towards our group-wide goal of reducing greenhouse gas (GHG) emissions by 60% Scope 1 and Scope 2 by 2030.