EB: Why is SEMCO looking for suppliers in India?
Currently, manufacturing facilities are mainly in the coastal areas of China, but recently, there have been some noticeable changes, with manufacturing facilities now coming up in the inland regions of China and in southern Asia as well. That’s one reason why SEMCO is looking at suppliers from India. The second reason is in India itself. I feel India is ‘incredible’ in its economy and market. SEMCO would like to find some potential suppliers in India within five years. We also hope to start meaningful business in raw materials by next year. This is because there are less limitations of transportation in India. Finally, I would like to talk about localisation of the supplier chain. If SEMCO’s manufacturing worksites move to southern Asia and Africa within five years, we would mainly source from India. This is why SEMCO is looking at suppliers from India now.
EB: What type of products do you seek Indian suppliers for?
SEMCO’s products are categorised into four sections—passive components, printed circuit boards, wireless and power supplies, etc. First, I hope to find suppliers for such raw material as natural resources and roughly worked materials. Then, I hope to set up a business with fully processed components for SEMCO’s products. And finally, I’d like to introduce one particular project called Open Sourcing System, based on a kind of procurement and open architecture model.
Any company that is approved fully through the Open Sourcing System is registered in the available vendor list (AVL) of SEMCO. The Open Sourcing System will be officially launched in the first quarter of 2012. SEMCO has always made an effort to find the best way to find potential suppliers from all around the world, including India.
EB: For suppliers interested in supplying to SEMCO, whom should they contact?
SEMCO has one particular department for sourcing resources from around the world—the Global Sourcing Department, which is responsible for finding potential suppliers from all over the world. We also have international procurement centres in China, Japan, USA and Singapore, with their own operation areas.
EB: Besides price, what are the other important parameters you seek from your suppliers?
Price is a very important factor, but we also consider technologies from the stage of design to manufacture. We also emphasise on the quality of all products.
EB: Do you look for any certifications from suppliers?
We do not look for any certification in particular, but we definitely want our suppliers to relate to products that are not only standards based but also design based. Suppliers need to have a good understanding of the industry’s requirements.
EB: What are your plans ahead in India?
I’ll continue to look for potential suppliers in India. I will also visit different companies, manufacturing facilities and will stay in touch with the trade community in India.
