System partnership guarantees quality with low environmental impact

System partnership guarantees quality with low environmental impact

Keywords: Automotive industry, Environmental management

The fundamental structural changes that are taking place in the automobile industry are having a major impact on the automakers' procurement strategies and they have caused traditional manufacturer-supplier relationships to be redefined. At a press conference held jointly with Renault at Renault's plant in Novo Mesto, Slovenia, BASF Aktiengesellschaft and BASF coatings provided information on the system partnership concept, an approach that helps customers to be more successful. “One of the crucial principles of our BASF 2015 Strategy is that 'We help our customers to be more successful'”, explained Jacques Delmoitiez, Group Vice President of BASF Aktiengesellschaft, who heads up the project dedicated to implementing this strategic principle.

In 1999 the system partnership concept was launched at Renault's Novo Mesto plant. As the “lead system supplier”, BASF coatings is responsible for the system partnership. But it provides more than just paint; it works on site directly at the customer's plant and in direct collaboration with the customer. BASF coatings service teams work at the automakers' production lines,ensuring that painting work is flawless. Twenty-nine employees are involved in such a system partnership at the Renault plant in Revoz, Slovenia.

“We at BASF accept the risk of defective painting, and we share the profits resulting from efficient, high-quality production”, explained Thierry Herning, BASF coatings' Global Key Account Manager for Renault and Nissan. As the system supplier, BASF coatings provides the products needed for the four paint layers – from e-coat to clearcoat – and also handles the logistics for more than 70 products, including those from second-tier suppliers.

The manufacturer, in this case Renault, no longer pays for the amount of paint that is supplied, but rather only for the properly painted car body. This model is referred to as “cost per unit” (CPU). “Only the result counts”, Herning also stresses. The supplier and the manufacturer share the same interests, so the partnership becomes closer and mutual trust and confidence grow. “This concept benefits both partners because it increases productivity”, explains the Global Key Account Manager. Last year Renault produced a total of 180,000 “Clio” vehicles relying on this concept.

The advantages of system partnerships are manifold. Simon Franko, head of the BASF team in Novo Mesto, cites one such advantage: eco-efficiency. Since, less material is consumed, there is also less paints and solvents waste. The heavy metal content of vehicle finishes is reduced, as are emissions during production.

Plant energy consumption is also decreasing. This is because the improved process flows make it possible to run the painting line at lower temperatures and to optimise drying parameters. Since, less reworking is required in the painting process, material consumption is also lower. Thus, in the final analysis the system partnership contributes to environmental protection.

Customers really like the approach: BASF Coatings currently has about 30 different system partnerships and is the world leader in this regard. It also has system partnerships with companies like DaimlerChrysler, Ford, General Motors, Volkswagen and Magna Steyr.