How a technology and solution provider received benchmarking services on 35+ suppliers of raw material for EV batteries & successfully partnered with 3 of them
Background and Challenge
Client’s Background:
- The client is a worldwide leader involved in the development of diverse electronic technologies and solutions spanning across 35+ countries, employing > 200,000 employees. Their main area of focus includes audio and visual products, digital cameras and communication devices. In Indonesia, the player is established as a well know manufacturing company focused towards manufacturing Water Pump, Air Conditioner, Refrigerator, Washing Machine, Radio and so on.
Challenges Faced by Client:
- Sourcing EV battery raw material locally: The client was facing challenges in identifying local suppliers of EV battery raw materials in Indonesia. Hence, they contacted Ken Research and Strategy Advisory for a procurement research to identify the potential suppliers of EV battery raw material such as Nickel, Cobal, Lithium and more in the region, who they can partner with and explore business opportunities in the field. They were looking for only domestic manufacturers to source the raw materials from.
EV Raw Material Industry at Glance:
- Indonesia contributes ~48.0% to the total amount of nickel produced worldwide.
- In 2022, Indonesia stands as 5th largest producer of bauxite (used in aluminum production) with output up to 0.44% on 2021.
- Indonesia also became the 2nd largest producer of cobalt (used for extending EV battery life) in 2022. Around 9.5 Th tones was produced in Indonesia in the mentioned year.
- Indonesia is estimated to have nickel reserves of >50 million tons, expected to last for more than 30 years.
Approach and Recommendations
Phase 1: To identify manufacturers of EV Battery Raw Material
- Ken conducted an exhaustive research to identify the list of 37 EV battery raw material manufacturers that have a presence in Indonesia.
- Ken Research approached the management of these companies to understand their operating model, geographical presence, focus areas, business verticals, services offered and more.
- Mystery calls were also conducted to understand the pricing and discount scenarios of the manufacturers. These discussions gave a better clarity on the operating parameters of these manufactures in Indonesia.
Phase 2: Key Analysis of Supplier Benchmarking
- The second phase of work focused on curating a powerful database of potential suppliers of EV battery raw material manufacturers.
- Supplier Benchmarking was performed including various parameters such as major industries served, reference pricing, negotiated pricing, possibility of a partnership and others.
- This helped the Client to see through the operational benchmarking of the manufacturers with eminent and noteworthy Primary Research and Indonesian team support by Ken Research in short span of time duration.
Phase 3: Best Cost Sourcing Strategy
- After identifying and analyzing the competitive KPIs across the market, Ken provided a list of potential suppliers to the client for possible collaboration.
- These included cross comparison on the basis of pricing and willingness for a new partnership and other operational parameters for the client to choose as per the requirements.
- With quality recommendations and success factors, Ken Research has provided an exhaustive list of EV battery raw material suppliers to the client for a partnership with manufacturers and growth in this field.
Result and Conclusion – Provided the client with detailed supplier benchmarking and best cost analysis to partner with a manufacturer of EV battery raw material to expand its business in Indonesia
Constructive Market Assessment
- The supplier specific market assessment will enable the Client to substantially develop their understanding about the raw material manufacturers, their pricing strategies, material offered and production capacity in Indonesia.
Holistic Approach driven Supplier Benchmarking
- Benchmarking of 37 raw material manufacturers across 15+ KPIs.
- The client was well able to assess the list of EV battery raw material manufacturers in Indonesia; their pricing, production capacity and other parameters to partner with one of them and expand their business line in the region.
Business Impact
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Partner with 3 manufacturers of EV battery raw material in Indonesia Successfully connected with the supplier that offer good quality products at best prices, with short turn around time.