Quality, a Must Not Only for Direct SuppliersBy Alejandro Salas | Fri, 03/29/2019 - 05:00
Whether it is quality certifications, proven financial capacity to support production or cost-competitiveness, companies that want to support OEM assembly operations with components, industrial equipment or indirect materials must keep their game up to remain competitive, according to Jorge de la Garza, CEO of Industrias Dinamek. “OEMs are highly demanding customers in terms of both price and service, which reduces the number of companies that can supply them directly.”
As a company that supplies a variety of assembly tools, material handling equipment and indirect materials, Dinamek chooses to focus on its strengths to succeed in the highly demanding automotive industry. The company takes advantage of more than 20 years of experience to produce the dip tanks on which panting cabins are mounted. Production of these dip tanks requires a highly specific know-how which, combined with the required cost-effectiveness this equipment demands, makes Dinamek a solid go-to option for OEMs and Tier 1 suppliers in Mexico and the US, according to de la Garza.
“In the last 10 to 12 years, we have delivered an average of two equipment units per year,” he says. Around half of Dinamek’s operations in this business unit targets the US market, where Nissan, Kia, Mazda and Honda employ Dinamek’s services. The company has also supplied BMW, GM, Kia, FCA, Ford, Honda and Hyundai assembly plants in Mexico with a variety of consumables and indirect materials and has an ongoing project to support the renewal of some of GM’s painting lines in Mexico.
Aside from catering to OEMs, Dinamek supplies equipment to component manufacturers, such as Magna, as well as other manufacturing sectors, including electronics and home appliances. De la Garza explains that suppliers are generally easier to support than OEMs because they tend to be more open to collaboration. “Suppliers generally offer less resistance for equipment suppliers to support them in the engineering, installation and start-of-operations of a machine,” says de la Garza. As the Mexican auto parts supplier base grows in size, this market is starting to become more important for Dinamek.
Aside from its dip tanks division, Dinamek has a business unit focused on power tools, material handling equipment and consumable products, such as abrasives, tapes, packaging materials and filters. “The industrial consumables market has been traditionally unattended and offers great opportunities,” says de la Garza.
The new BMW plant in San Luis Potosi has generated great demand for consumables in an area that had been traditionally forgotten by suppliers in that segment. Dinamek took advantage of these opportunities and has started supplying BMW with indirect materials.
Looking ahead, de la Garza says the automotive industry will remain the most important industrial sector for Dinamek. Changes such as the new trade environment resulting from USMCA and the growing digitalization of the automotive industry could have a positive impact on the company’s future performance. “USMCA will push automotive companies to integrate more Mexico-made components,” he says.
On the industry’s increasing digitalization, de la Garza points out that Industry 4.0 is a reality that entails substantial changes for both manufacturing processes and commercial operations and that the company is preparing for this shift. “The importance of digitalization in manufacturing processes lies on the creation of available data,” he says. “Some of Dinamek’s control boxes and assembly cells offer clients data that can be studied and processed to make changes directly on the production line to increase productivity and quality.”