Key Performance Area | Metric | 2012/13 | 2011/12 | 2010/11 | 2009/10 |
Relationship with Principals | No. of principals | 81 | 78 | 72 | 63 |
No. of relationships above 50 years | 6 | 6 | 6 | 4 | |
No. of relationships between 25 to 50 years | 10 | 9 | 9 | 8 | |
No. of relationships between 01 to 25 years | 58 | 55 | 41 | 35 | |
No. of new relationships commenced during the year | 7 | 8 | 16 | 16 | |
Relationship with local suppliers | Payments to local suppliers (Rs. bn) | 4.7 | 4.5 | 3.9 | 1.8 |
Our focus will remain on nurturing the relationships with our existing Principals while seeking new relationships that represent a strategic fit.
Our business partner capital comprises of our partners with whom we have nurtured win- win relationships over the years. The business partner network comprises of foreign principals of the brands that we represent, and local suppliers who feed the local value chain. Delivering highest quality and value to customers require a harmonised and consistent effort by us, our principals, suppliers, our distributors and the dealers.
As a standard setter in many of the market segments that we serve, DIMO believes in partnering with the world’s best. In order to sustain such partnerships we stretch ourselves to the highest standards that our principals expect of us, without compromising on quality, ethics and trust.
To operate in the current business environment whilst pursuing lower costs, improving quality and managing a sustainable business requires a special type of relationship and co-operation with suppliers. We maintain close and frequent engagement with our principals and deliver on our promise year after year. The longevity and closeness of the relationships we have nurtured have held us in good stead. We continue to receive competitive prices for supplies. The transparency and accountability with which we approach business remains another differentiator that has helped many a mutually beneficial relationship reach full flower.
Embedding sustainability throughout the supply chain is not a task Dimo can perform in isolation. Whilst we work with our own suppliers, we engage with many others in our industry to promote wider action through joint activities. As a responsible corporate citizen we support the development of a cross industry approach to improve the accountability process.
At Dimo, supplier evaluation is an ongoing exercise involving all our supply chain management units. New and existing suppliers are selected and evaluated not purely on the basis of economic criteria alone, but on standards pertaining to environmental protection, occupational safety and social responsibility.
Our Code of Conduct for suppliers is based on internationally recognised guidelines, which drives the processes of selecting, retaining and sustaining the most appropriate business partners. These guidelines include environmental protection, compliance with human rights and labour laws, as well as anti-discrimination and anti-corruption policies.
Many of our relationships with our principals are as long lived as Dimo’s own existence. At the same time, we constantly seek new business avenues based on emerging opportunities and our core competencies. As a consequence, we have been growing our portfolio, adding principals who represent a strategic fit.
Blue chip brands need blue chip support services and service delivery. Through regular supplier engagement we stay abreast of developments and the expectations of our principals, whilst in turn we keep them informed of changing market conditions and the ever evolving demands of the customer.
At the top of the tree expectations become relentless – like the need for constant investment in people, facilities and inventories in both good times and bad.
Keeping the product available at all times with easy access to the customer is a major concern suppliers have. Meeting sales targets, maintaining superior after sales service, attracting new customers whilst retaining the existing ones and introducing new products are also concerns suppliers have.
And whilst all of this is being accomplished, we need to retain and grow our market share in a sustainable manner.
We understand these expectations.
During the year under review, we continued to invest substantially on establishing state of the art product display points around the country and also upgraded our service stations to the standards set by our principals.
Similar attention and investments were made in training and development of our employees, both locally and abroad, to bring them on par with international standards. We ensured also, that our technical and support staff were also constantly updated on technological developments.
Knowing whether you are where you want to be is a key factor in benchmarking ourselves. To this end we conduct research, surveys and face to face interviews with stakeholders from time to time. We have entrusted this activity to specialist third party organisations. The valuable insights we gain help us to initiate further improvements to the products and services we offer. We share these findings and our response with our principals.
Setting the bar this high has paid dividends. Dimo is a market leader in many of the market segments it serves and, over the year in review, we have been able to grow market share. Retaining our market positioning will require unrelenting improvement and innovation.
We treasure the lasting relationships we enjoy with our suppliers. Many of them are long lived and their longevity stands testimony to how well we work together.
One of the key market differentiators for Dimo has been the cutting edge technology of our principals. It follows then that the development of our human resource capacities commensurate to the standards of this technology is vitally important. Thus a major component of Dimo’s training and development inputs come from our principals.
Engagement with our principals moves evenly ahead, at a steady, methodical and even pace. They may take the form of one-on-one meetings at senior level, in Sri Lanka or in the principal’s home country. Other forms of engagement comprise familiarisation tours, training programmes and workshops for our staff and conversely for representatives of our principals. We discuss a variety of subjects – performance, economic and market trends, competitor issues, targets, training needs, resource utilisation and many more. We have a family orientation to these relationships hence it is not unusual for us to invite our principals for significant occasions such as anniversaries, new launches, opening of facilities and the like. Often they participate in customer meets. Internally they get involved with our CSR activities.
DIMO also maintains long-lasting relationships with its local suppliers/contractors. Our relationship building for these suppliers follows a similar pattern to that of our principals. Whilst we seek a like mindedness in terms of high quality of product and delivery standards we also require that they share in our high ideals in relation to sustainability. In fact, Dimo expects its existing and prospective suppliers to make a declaration on areas such as labour and human rights, health and safety, environmental impact and ethics, to ensure consonance. Once we achieve this symbiosis in precept and action, we seek to conduct steady business with these partners, sharing technical expertise and honouring our commitments to them promptly. We also stand ready to offer them support to conduct and grow their businesses successfully.
The Company also offers suitable employment opportunities to staff from our service providers, where such benefits are not to the detriment of our supply partners. Our CSR activities encompass the families of staff of our service providers too. We also maintain a healthy social status quo, with members of Dimo staff as well as those of our local suppliers attending key company events of both Dimo and suppliers.
During the year company paid Rs: 4.7 bn (2011/12- Rs. 4.5 bn) to the local suppliers.
Through these engagements we keep abreast of the developments and aspirations of our principals, whilst keeping them posted on changing market conditions and ever evolving customer needs.
We maintain open, two-way channels of communication with our suppliers. Dialogue is close and frequent and opportunities to voice any issue are abundant. Our business unit managers also provide regular feedback to principals, thus keeping them abreast of changing conditions.
Name | Country | Brands | No. of Years |
Daimler AG | Germany | Mercedes-Benz | 74 |
Robert Bosch GmbH | Germany | Bosch/Dremel | 59 |
DEMAG Cranes & Components GmbH | Germany | DEMAG | 54 |
KHD HumboldtWedag AG | Germany | KHD | 53 |
Siemens | Germany/India | Siemens | 53 |
Tata Motors Ltd. | India | Tata | 52 |
Bosch Ltd. | India | Bosch | 44 |
Komatsu Ltd. | Japan | Komatsu | 44 |
KSB AG | Germany | KSB | 44 |
Johnson Controls (S)Pte.Ltd. | Singapore | York/Sabroe/Stal/Frick | 36 |
Bomag GmbH | Germany | Bomag | 34 |
Bosch Automotive Systems Corporation | Japan | Zexel | 29 |
Robert Bosch GmbH | Germany | Bosch | 29 |
Carl Zeiss Meditec | Germany | Zeiss | 28 |
Tognum AG | Singapore | MTU/DDC | 26 |
Mahindra & Mahindra Ltd. | India | Mahindra | 23 |
Michelin | France | Michelin | 20 |
OSRAM GmbH | Germany | OSRAM | 19 |
Rane Brake Linings Ltd. | India | Rane | 19 |
Blaupunkt.Malaysiasdn.Bhd | Malaysia | Blaupunkt | 18 |
Fenner (India) Ltd. | India | Fenner/Pioneer | 16 |
Vossloh-Schwabe Pte.Ltd. | Germany | VS | 16 |
Bimetal Bearings Ltd. | India | Bimite | 15 |
SiTeco Beleuchtungstechnik GmbH | Germany | SiTeco | 14 |
John Deere Asia (Pvt) Ltd. | Singapore | John Deere | 12 |
MRF | India | MRF | 12 |
Davex Engineering (M) Sdn. Bhd. | Malaysia | Davis | 11 |
Draeger Medical | Germany | Draeger | 11 |
Schaefer Systems International Pte.Ltd. | Singapore | Schaefer | 11 |
Claas India Ltd. | India | CLAAS Harvesters | 10 |
MHE-Demag (s) Pte. Ltd. | Singapore | MHE-Demag | 10 |
Chrysler Group LLC | USA | Chrysler/Jeep | 9 |
Everdigm Corp. | South Korea | Everdigm | 9 |
SchwingStetter (India) Pvt Ltd. | India | Stetter | 8 |
Zenoah | Japan | Zenoah | 8 |
Fischer Werke GmbH | Germany | Fischer | 7 |
Snap-on Tools (Pvt) Ltd. | USA | Hoffmann/JBC | 7 |
Sri Bhavani Castings Ltd. | India | SBP | 7 |
VE Commercial Vehicles Ltd. | India | Eicher Dem | 7 |
Victor Gaskets India Ltd. | India | Victor | 7 |
See Hau Global Sdn. Bhd. | Malaysia | Intraco pallet | 5 |
Turbo Bearings (P) Ltd. | India | Turbo | 4 |
Sri Ramadas Motor Transport Ltd. | India | SRMT | 4 |
Rudolf Zimmermann Bamberg GmbH (RZB) | Germany | RZB | 3 |
WD 40 Company | USA | WD 40 | 3 |
Haulotte Group | France | Haulotte | 3 |
Auto & Construction Equipment Corp. | India | Jabsco, Rule, Flojet, Yamada | 3 |
Technology Ventures Middle East FZC | U.A.E | Technology Ventures | 3 |
Fujiwa Corporation | Japan | Fujiwa | 3 |
Kumho Tires Co., Inc. | Korea | Kumho | 2 |
Manitowoc Cranes India Potain India Pvt Ltd. | India | Manitowoc/Potain/Grove | 2 |
EC Smith & Sons ( Marine Factors) Ltd. | UK | ECS | 2 |
Clements Engineering (St. Neots) Ltd. | UK | CLEMENTS | 2 |
AMT Marine Technologies (Pvt) Ltd. | India | AMT | 2 |
Damesa | Spain | MIKALOR | 2 |
Pratikel Ltd. | Turkey | Pratikel | 2 |
Voyage Marine Automation L.L.C. | UAE | VOYAGE | 2 |
Medtron AG | Germany | Medtron | 2 |
Trafo Electro Services | Italy | Trafo | 2 |
Goltens Co Ltd. | UAE | Goltens | 2 |
Samudra Shipyard (P) Ltd. | India | Samudra Shipyard | 2 |
VULKAN Technologies Pvt. Ltd. | India | VULKAN | 2 |
EBS-RAY PUMPS PTY. LTD. | Australia | EBS | 2 |
ITW India Ltd. | India | ITW | 2 |
KaeserKompressoren GmbH | Germany | Kaeser | 1 |
Gomaco International Ltd. | USA | Gomaco | 1 |
STILL GmbH | Germany | STILL | 1 |
ElectroniconKondensatoren GmbH | Germany | Electronicon | 1 |
Chicago Pneumatic | USA | Chicago Pneumatic | 1 |
Power Systems Conex GmbH | Germany | Conex | 1 |
Leader Marine (China) Co. Ltd. | China | Leader Marine | 1 |
Mopar Auto Parts (Shanghai)Trading Co. Ltd. | China | Chrysler/Jeep | 1 |
Kusalava International Ltd. | India | TIGERPOWER | During the year |
Landoll Corporation | USA | Bendi | During the year |
Setco Auto Motive Ltd. | India | SETCO CLUTCH | During the year |
IMER GROUP | Italy | IMER | During the year |
EXALTO EMIRATES MARINE EQUIPMENT | UAE | EXALTO MARINE | During the year |
MGDUFF | UK | MGDUFF | During the year |
Tomo Therapy Europe GmbH | USA | Tomotheraphy | During the year |