With a solution embedding intelligence early in the design-to-source lifecycle, Supplyframe aims to leverage India’s electronics manufacturing boom. At IEW 2024, Michel Van Cotthem VP Sales EMEA/APAC & Corporate Synergies at Supplyframe, a Siemens Digital Industries Software company, outlined bold plans for India in a conversation with EFY’s Yashasvini Razdan.
Q. Could you tell us a bit about Supplyframe and what it does?
A. Supplyframe, a company acquired by Siemens three years ago, helps customers incorporate intelligence early in the design-to-source lifecycle management of any product that has electronics components. The design-to-source intelligence network is a software as a service (SaaS) solution, delivered via cloud software. Customers can subscribe to the service for a term ranging from one to three years. This model allows them to access the platform’s capabilities and benefits without the need for on-premises infrastructure, providing flexibility and scalability to meet their evolving needs.
Q. How does your product benefit your customer?
A. It provides decision support from the intelligence that we feed into the early design-to-source lifecycle management of our customers; they are capable of utilising intelligence that they are not aware of. For example, when stock issues occur, and our customers want to source components that are not available, or if they want to launch a new vehicle and those components are not available, then they must switch suppliers or redesign. We bring intelligence early on into the design cycle so our customers can build a resilient bill of material to deliver upon the promise towards their market and towards their internal and external stakeholders.
Q. How would you explain your solution to a technical decision maker of your prospective customer company such as CIOs, and CTOs?
A. These individuals will have the opportunity to embrace a SaaS solution at the platform level, which will aggregate data within the entire company and provide different departments with their unique, specific needs to enhance new product introductions. Here, we handle the hosting and fuel the intelligence. All you need to do is subscribe. This approach frees up resources from IT and technical standpoints.
Additionally, our company adheres to SOC2 compliance regulations. Every piece of data used by the customer is proprietary and encrypted to ensure security and confidentiality. This means that no one else can access or view the intelligence we provide for your day-to-day operations, manufacturing, engineering, and sourcing activities.
Q. Who is the target decision-maker for these products?
A. The target decision-maker can be anyone responsible for new product introductions. Nowadays, we observe that procurement officers and supply chain officers are particularly interested in embracing our solution. It assists them and their teams in anticipating market trends and making informed decisions.
Q. Who is your target customer for this product?
A. I would say all manufacturing companies that are producing products with a significant portion of electronics content. This can span across various verticals, including consumer product goods such as electronic toothbrushes, the automotive sector especially with the development of electric vehicles (EVs) which heavily rely on electronics, aerospace and defence industries, household appliances like fridges and microwaves, healthcare devices, and smartphones.
Q. What are the problems that your product solves?
A. Firstly, there is a trend towards huge complexity. Our devices and products are becoming smaller, faster, leaner, and need to be capable of being sold at the right price to the right people. Complexity is a key aspect.
Secondly, collaboration is crucial. Following supply chain crises, companies have been firefighting the issues they faced. However, they often maintain a lot of knowledge within siloed departments. For example, the engineering department may have its own set of intelligence, while the procurement department has another. We encourage our manufacturing companies and customers to break down these silos and enhance collaboration so that everyone can access the same intelligence in the context of their job. This enables what we call ‘shift left,’ bringing the decision-making process earlier in the design cycle, ensuring the use of the right electronic components to meet timelines, improve margins, and accelerate product introductions into the market.
Q. Which markets are you looking to target?
A. Well, we expect a huge growth in electronics manufacturing, particularly in regions like India. We have been conducting some research, and reports show that India’s electronics manufacturing is projected to grow by 15% and worth US $150 billion by 2024. This presents a significant opportunity for Supplyframe and aligns with our growth ambitions in the EMEA and Asia Pacific regions.
Q. What are the opportunities that the Indian market presents for you?
A. The Indian market’s electronics economy is experiencing massive growth and presenting significant opportunities. I believe that India has the right people and talent, and now it is crucial to bring the right solutions to the market to support these organisations effectively.
Key growth areas for us include automotive and EV markets, particularly in two-wheelers, where we see exceptional potential for growth.
Q. When you talk about intelligence, are you referring to AI?
A. It is not only about AI. If you can collect a vast amount of data and applying machine learning to analyse that data, combining it with existing enterprise data, then you have a unique position to make informed decisions. While we do embrace AI in our solutions, as most do nowadays, we are also recognised as a comprehensive solution that goes beyond just AI.
Q. What is the extent of intelligence that you put into your product? Where are you sourcing your data from?
A. Supplyframe’s platform data is sourced from theDSI Network, which stands for design-to-source intelligence network. It is a massive network that has been growing over the past 20 years. Even before Siemens acquired Supplyframe two and a half years ago, Supplyframe had already been in the market for 20 years, originating from the electronics industry. Over these two decades, we have gained significant knowledge and expanded our network to become a data lake for all electronic components manufacturers and their end-users. Currently, every day, about 60-70 websites globally are used by supply chain, procurement, and engineering professionals to search for components. On a periodic basis, we observe around 15 million unique professionals accessing our network, contributing to the intelligence fuelling our platform, which manages 600 million unique electronic components.
Q. What is the business opportunity you present to your customers?
A. The biggest business opportunity for them is enhancing collaboration. We allow our customers to bring products to market faster, at the right cost, and with the right quality. It is interesting to note how optimising the entire process with our product can facilitate this goal.
Q. How do you market your product to your Indian customer with respect to the challenges they face?
A. During the past week, I had the opportunity to meet with many manufacturing companies, regardless of the area. I met some big automotive OEMs, aerospace, and defence firms. For sure, the two-wheeler EV business is prominent here. I met with some great inspirational leaders there. The challenges they face are not that different from the challenges we face with our manufacturing companies in Europe or the US. They also have a lack of visibility and transparency, and a lack of collaboration with their internal stakeholders. They also lack collaboration with their tier one and tier two suppliers. Whenever we convey the message of that collaborative framework and the intelligence we can fuel, people are very interested in diving a little bit deeper with us and learning more about how we can fuel intelligence and bring resilience into the supply chain.
So, I must say that within India, I have seen nothing but positive reactions from the procurement people, from people responsible for the supply chain, in learning more about how the Supplyframe can help them.
Q. Where are you storing the data you collect?
A. Our solution operates on live cloud data, which is a unique aspect of our offering. We do not want our customers to rely on static information or backward-looking data for making decisions. Instead, we focus on providing real-time intelligence to anticipate market trends and future events.
This live cloud data allows our customers to connect and access intelligence that is constantly updated and evolving. Your view of the market now could be entirely different if you were to log on and request new intelligence within an hour or the next day. Our solution ensures that our customers stay ahead by providing up-to-date insights and analysis.
Q. How does your product compare to what your competitors sell in the market?
A. I am going to be bold here. I must admit that we do not have any competition. We are quite unique, and what Supplyframe is trying to encourage our customers to understand is that we are creating a new category here.
There is no such thing as a Gartner Magic Quadrant or a Forrester Wave for a solution like ours, which offers rich, intelligent design-to-source lifecycle management. So, what we are establishing here is a new category, a new market for our innovative solutions.
Q. Do you offer customised solutions for different products?
A. Our solution is a SaaS offering that can be configured based on the unique needs and processes of the customer. While we do not refer to it as customisation, the uniqueness of our solution and its SaaS nature allow for flexibility. We also provide open APIs, enabling integration with other enterprise applications.
Starting with Supplyframe as a standalone solution is beneficial, but it becomes even more powerful when combined with existing enterprise data. By integrating our solution with applications such as PLM solutions or supplier collaboration tools, we can enhance the entire process and provide a comprehensive solution tailored to the customer’s specific requirements.
Q. What are the other emerging technologies or advancements that you plan to incorporate in the solution?
A. I cannot reveal too much now, but one thing is certain: supply chain is a hot topic. Siemens has embarked on this journey and sees Supplyframe as the nucleus of their digital marketplace moving forward. So, stay tuned for more updates. Supply chain is indeed hot, and I believe our solutions can assist many customers in achieving resilience in their supply chain operations.
Q. How was your experience at EFY’s India Electronics Week 2024?
A. I am grateful for being here in India. I met customers, engaged in discussions on how we can assist them, and gained a better understanding of their processes. The people here are unbelievably hospitable and open to change, which reflects a growth mindset. This mindset is truly commendable and left a lasting impression on me. Thank you for the warm welcome and the opportunity to collaborate.
