ZF to make its India operations a global sourcing hub

ZF is looking to reap dividends from its India operations. The German automotive component and services major is to reinforce its supplier base in the Indian market and has initiated a ‘Wind of change’.

In an announcement made on ZF India Supplier Day (June 6), the company said it aims to reach 100 million euros worth of export from India by 2017. This was announced on the occasion of the ZF India Supplier Day.

“We want to develop India to a global sourcing hub for ZF,” said Wilhelm Rehm, Member of the Board of Management of ZF Friedrichshafen AG and responsible for Corporate Materials Management. “India has always had an advantage of a good supplier base, technical capability and availability of skilled talent proving it to be a premier destination for sourcing.”

GPO in ZF Chakan plant

In order to underline the strategic goal, ZF India has set up a Global Purchasing Office in the ZF Chakan Plant, the headquarters for ZF in India. This structural change will help to enable local commodity managers to reach a higher frequency and engage in deeper interaction with the supplier base. It also gives the suppliers the much-needed window into a global organisation offering multi-product opportunities. The team will also function as a Regional Commodity Office, allowing ZF to develop a quality portfolio of products for the Indian and overseas markets. The company says it is streamlining its operations to create a real time link with its strategic suppliers who are working closely towards a strategic growth course for various products to support the GPO.

“ZF aims to further strengthen its presence in India and will endeavour to seize any prospects related to castings, forgings and stampings while going forward with value added products and assemblies,”  added Horst Wiedmann, executive vice-president, Head of Strategic Materials Management & Central Services, ZF Group.

“India has always had an advantage of a good supplier base, technical capability and availability of skilled talent proving it to a premier destination for sourcing.” Currently ZF is exporting to the tune of 35 million euros from India and aims to increase this figure to 100 million euros by 2017. According to Suresh KV, president for ZF in India, “We at ZF have always realised that the Indian market helps manufacture international quality products. We have been present here for over three decades and aim to position India as a major sourcing hub which can further help our presence on a global scale.”

ZF has restructured its team to be in sync with the new ZF Global Materials Management organisation. The structure now consists of a head of Material Sourcing who will oversee a team of commodity managers. Technological innovations harmonized with a robust global supply chain supports ZF‘s manufacturing and assembly process which is coupled with ZF Production Systems approach. This all-inclusive approach ensures global quality products at vehicle- and field level.