Regionality = Sustainability
The pandemic and the war in the Ukraine have caused many things to be reassessed. Regionality has gained special importance. Lean global supply chains continue to exist, but supplier proximity has become increasingly important. 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 regional suppliers therefore has an impact on the economy, the environment and society. EVVA and its stakeholders have therefore rated "the proportion of regional suppliers" as essential for the company. As practically all materials and product components for the international EVVA Group are purchased through the headquarters in Vienna, EVVA defines suppliers within a radius of 1.000 km as regional sources in the reporting period. That’s why we talk about "regional" suppliers rather than "local" ones. More on that in the target below.
Supplier analysis (figures rounded)
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 newly 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 material
- Of our top 100 suppliers, 57 come from Austria (41 of them from Vienna, Lower Austria, Burgenland). Around 54% of the purchasing volume of the headquarters is realised near Vienna (distance less than 500 km). Approximately 93% of the top suppliers come from the region of Central/Eastern Europe (distance less than 1000 km).
Supplier share of the total purchase turnover by region
- Only 3% 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
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.
Fulfilment date: 2023
How: This target was adapted in 2021 because the EVVA definition of "regional suppliers" has also changed. So far, only Austrian suppliers have been designated as regional. The original target was to increase their share of purchasing sales from 50% to 60% by 2023. In the reporting period, EVVA reassessed the regionality and defined suppliers within a radius of 1000 km from the Vienna headquarters as regional. There are two reasons for the redefinition: On the one hand, in the sense of a “Europe of the Regions”, with which the EU would like to support regional self-reliance. With regard to CO² emissions, a supplier from nearby Bratislava is no less regional than a supplier from the more distant Austrian Vorarlberg. On the other hand, because many of the essential material manufacturers for EVVA, with whom we have maintained very close business relationships for decades, come from Central and Eastern Europe. With the help of these regional supply chains, we aim to keep 95% of our purchasing turnover within the 1000 km radius by 2023. We are currently at 93%.
We want to achieve this target, for example by no longer procuring key heads or electronic components such as motherboards from overseas.
Positive effects: According to calculations by EVVA's Logistics & Purchasing department, 1 million euros of EVVA's purchasing turnover remain in the region, helping to secure or expand supplier jobs. Due to the shorter transport distances (less air freight from Asia) around 25 tonnes of CO² are being saved.
How would you like to share?