Proportion of regional suppliers Regional proximity promotes the region's economy and environmental protection
alt text
Defined as a key topic for EVVA GRI 204: Procurement practices; 413: Local communities UN Sustainable Development Goals (SDGs), No 11: Sustainable cities and communities
Management approach – our why:

Regionality = Sustainability

The Corona crisis has caused many things to be reassessed. The regional aspect has benefited in particular. Lean global supply chains continue to exist, but supplier proximity has become increasingly important. Long before Corona, EVVA was already focusing on a high level of added value and regionality, because

  • this makes us more independent of distant suppliers, which increases security of supply and reduces potential delivery difficulties in times of crisis. This regional value chain strategy has guaranteed us and our stakeholders a very high security of supply during the pandemic
     
  • the shorter transport routes mean less CO² emissions and thus contribute to climate neutrality
     
  • working with nearby suppliers helps to keep jobs in the region


All these benefits can compensate for, or at least cushion, the higher costs of regional procurement channels. A high proportion of EVVA's suppliers from the region therefore has an impact on the economy, the environment and society. Stakeholders have therefore rated "the proportion of regional suppliers" as essential for EVVA. As practically all materials and product components for the international EVVA Group are purchased through the headquarters in Vienna, we define suppliers from Austria as regional sources. That’s why we talk about "regional" suppliers rather than "local" ones.


Supplier analysis

EVVA purchasing at its headquarters (including the main production facility), where the group of companies generates approx. 75% of the total production value added, has analysed its regional proximity of suppliers:

  • To be able to manufacture high-quality mechanical and electronic access systems, EVVA co-operates with around 500 suppliers. The suppliers satisfy our need for raw materials for production (mainly brass) as well as product components and tools, etc:
     

Supplier proportion by materialIllustration Supplier proportion by material
 

  • Of our top 100 suppliers, 67 come from Austria (42 of them from Vienna, Lower Austria, Burgenland). 50% of the purchasing volume of headquarters is realised in Austria (35% of which in eastern Austria). Our other suppliers come from Germany (21%), Italy (7%), Switzerland (6%), other European countries (11%) and outside Europe (4%). EVVA subsidiaries receive more or less all product components from headquarters
     

Proportion of supplier countries in total purchasing revenueIllustration Proportion of supplier countries

 

  • Around 4% of the material and components that EVVA must purchase are not from Europe, but from China or India, such as key bows or Nirosta parts for electronic handles
     
  • Very stable and long-standing business relationships: EVVA has been associated with its main suppliers for decades, often over several generations. In figures: EVVA has been in close business contact with 70% of regional suppliers for at least 20 years


Challenges

As the above list shows, EVVA cannot obtain all the parts required for production from regional sources. A few components need to be procured from suppliers from other continents. This is because there are practically no local suppliers for certain product categories (such as hardware parts for electronic systems), and if there are, they offer products at very high and uncompetitive prices. For certain components, there are generally only a few suppliers on the world market. EVVA has therefore intensively analysed its single sources in recent years. For more information, see Security of supply.

Our targets

Fulfilment date: 2023

How: Regional suppliers currently account for 50% of purchasing volume. EVVA aims to achieve 60% by increasingly procuring electronic components such as main circuit boards regionally.

Positive effects: According to calculations by EVVA's Logistics & Purchasing department, an additional €8 million of EVVA's purchasing turnover remains in the region, helping to secure or expand supplier workplaces. The shorter transport distances save an estimated 20 tonnes of CO².

We are here for you
Mon - Thu: 7:30 am - 4:30 pm
Fri: 7:30 am - 2:00 pm


+43 1 811 65-0
Use the contact form or directly write to us at
export(at)evva.com