SEG AUTOMOTIVE: A NEW ERA OF AGILITY
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SEG AUTOMOTIVE: AGILITY AND AUTONOMY IN THE SUPPLY CHAIN
WRITTEN BY
HARRY MENEAR PRODUCED BY
JUSTIN BRAND
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SEG AUTOMOTIVE
NINA BOMBERG, GLOBAL LEAD BUYER AT SEG AUTOMOTIVE, DISCUSSES COLLABORATION, COMMUNICATION AND THE COMPANY’S INCREASED AGILITY FOLLOWING ITS CARVE-OUT FROM BOSCH
C
onventional wisdom dictates that, when leveraging bargaining power, the bigger the company, the better the deal. In
January 2018, the Starter Motors and Generators division of multinational engineering and electron04
ics company, Bosch, completed its transition to become an independent organisation. Trading under the name SEG Automotive, now owned by Chinese consortium Zhengzhou Coal Mining Machinery Group (ZMJ) and China Renaissance Capital Investment (CRCI), the company is continuing to push the envelope of powertrain solutions for combustion engines and electrification in the automotive sector. “Our new advantages include being more flexible, faster and more able to incorporate supplier innovation,” explains Nina Bomberg, Global Lead Buyer at SEG Automotive. Bomberg was hired by SEG in 2017 before the company’s carve-out was completed, taking the reins of a global procurement network readying itself to step into the future. She sat down to discuss SEG’s sourcing, procurement and supply
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SEG AUTOMOTIVE
“ YOU CAN BE TOUGH WHEN YOU NEGOTIATE, BUT YOU SHOULD ALWAYS BE FAIR AND TREAT PEOPLE WITH DIGNITY AND RESPECT” — Nina Bomberg, Global Lead Buyer, SEG Automotive
chain strategy going forward, the company’s plans to become a world leading provider of electrification solutions, and why bigger doesn’t always equal better. Bomberg has always enjoyed the unpredictable nature of a career in sourcing. “One day you need to rent an elephant and the next you’re finding a financial auditor,” she laughs. “I’ve always enjoyed the diversity.” Change in the procurement industry isn’t restricted to the day-to-day: over the
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CLICK TO WATCH : ‘SEG AUTOMOTIVE CORPORATE VIDEO’ 07 past decade, Bomberg notes, the role
acknowledges that a large portion
of the supply chain executive and their
of the industry still has a long way to
department has evolved dramatically.
go in terms of supply chain evolution.
“We’ve moved from being a purely
“I joined a company in 2012 that was
cost-driven money saver to becoming
turning over multiple billions of dollars
internal consultants on a mission
every year – yet they didn’t have an
to create value for the organisa-
indirect sourcing department. The
tion,” she says. “Cost saving is
role of procurement is changing, but
definitely still a part of our role,
some companies have a longer way to
but we also focus on supply
go than others,” she says. With SEG,
security, innovation and more.”
Bomberg’s excitement continues, not
The opportunity to join a company
only to be working in a growth sourcing
that was preparing to cross
industry, but also to be part of a team
such a monumental threshold was
that is at the forefront of the supply
an enticing one for Bomberg, who
chain industry’s evolution. w w w.se g- a uto mo t i ve. com
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Original photo © seg-automotive.com
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“The biggest lesson I’ve learned at
essential to fully leverage employees’
SEG is that what goes around comes
expertise. “As global lead buyers, we are
around,” says Bomberg. “How you treat
responsible for the overall purchasing
the other side of the table is crucial. You
strategy. We’re also the ones coordinat-
can be tough when you negotiate, but
ing the commodity buyers that SEG has
you should always be fair and treat
spread around the world. We have
people with dignity and respect.”
local people doing the purchasing in
Establishing respectful, mutually-ben-
the specific countries, as they are
eficial, long term relationships between
much closer to our internal business
SEG and its suppliers is a vital aspect
partners, as well as local legislation,
of Bomberg’s role in managing the
regulations, taxation, local suppliers
company’s buying strategy. Communica-
etc. If everything was done from the
tion between the company’s high-level
central office, we would not be able to
decision makers and local buyers is
operate with the same amount of
E XE CU T I VE PRO FI LE
Nina Bomberg Nina Bomberg has a background in various Indirect roles in multi-national companies operating in different industries. Today she is the Global Lead Buyer in the Indirect Sourcing division of SEG Automotive. Their capex sourcing team is a team of seven people, spread across all regions. Currently she focuses on right-sizing processes after the company’s carve out from Robert Bosch. Her experience in multi-cultural change management and stakeholder management, as well as a motivator prove to be beneficial for this task. Bomberg is a business graduate and holds an MBA from ESCP Europe.
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SEG AUTOMOTIVE
flexibility and insights,” explains Bomberg. “It’s very important that, when we implement our strategies, we align closely with our specialist departments so they understand why we do or don’t do certain things. In the sourcing space, a lot of things live and die by whether the internal business partners align with a strategy.” SEG Automotive’s strategy of communication and collaboration also applies to their suppliers. “We’ve had extensive discussions with our supply base which 10
allowed us to explain our mission of reducing global CO2 emissions, our new structures and showcase the
“ THE AUTONOMY WE HAVE NOW MEANS WE SET OUR OWN TARGETS – AND ELECTRIFICATION IS A KEY AREA OF GROWTH FOR US” — Nina Bomberg, Global Lead Buyer, SEG Automotive
additional benefits that we now bring to the table. In the past, we had many suppliers that were a good fit for the huge organization that is Bosch. Now, we develop suppliers that are perfect for SEG and our new size and speed. Very often that is a supplier we have worked with for many years, and in some cases it’s a new organisation,” she says. One of the new companies working with SEG is CHG Meridian, an IT services and leasing company from Weingarten, Germany. “Since the carve-out, we’ve had a very good relationship with CHG using their IT solutions,” Bomberg says. “Our next project will be to streamline our forklift fleet. CHG will definitely help us to align and organise it better.” Bomberg notes that SEG’s more agile business profile is conducive to both increased levels of communication and adaptability. “Instead of the complex organization of Bosch, we now have a dedicated sourcing team that serves only SEG. With increased focus, process knowledge and more direct communication, intercultural and inter-disciplinary teamwork has become much easier. This includes regular visits of the global lead buyers to the local buyers around w w w.se g- a uto mo t i ve. com
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“ IN THE SOURCING SPACE, A LOT OF THINGS LIVE AND DIE BY WHETHER THE INTERNAL BUSINESS PARTNERS ALIGN WITH A STRATEGY” — Nina Bomberg, Global Lead Buyer, SEG Automotive
my we have now means we set our own targets – and electrification is a key area of growth for us,” emphasises Bomberg. “We have the clear goal of being a technology leader in that field as well.” SEG’s new Chinese owners reflect the increasing maturity of the electric vehicle market in the Asia Pacific region. Bomberg asserts: “China has established itself as the largest car market in the world and is driving the change towards electrification.” European demand for solutions that
the world ,” says Bomberg, adding that
reduce CO2 emissions is rising rapidly
the reduction in organizational complex-
too and SEG is anticipating a continued
ity has allowed SEG’s team to cater
surge in a market where it is already the
its sourcing practices to the unique
key player. “48V mild-hybridization in
challenges of different markets. “Now
particular will be a key technology in
it’s possible to have a supplier that only
Europe, which is set to even outpace EVs
works in Brazil but is exactly right for
in terms of market penetration. Just as
that market, whilst for the other six
with starter motors and generators
countries where we produce, we buy
before, we are a technology leader for
from someone else.”
48V, which transforms any conventional
More focused, adaptable sourcing is
internal combustion engine into an
giving SEG the ability to hone in on its
efficient mild-hybrid with minimal effort.”
long term goals: to further increase its
The company is looking to expand its
contribution to reducing CO2 emissions
portfolio and improve upon existing
from passenger cars and commercial
products at its new R&D centre under
vehicles, while also becoming a leader
construction in Changsha, China, which
in electrification solutions. “The autono-
is collaborating across continents with w w w.se g- a uto mo t i ve. com
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“ ONE DAY YOU NEED TO RENT AN ELEPHANT AND THE NEXT YOU’RE FINDING A FINANCIAL AUDITOR” — Nina Bomberg, Global Lead Buyer, SEG Automotive
vehicles,” says Bomberg. At the same time, the company also expands its product portfolio to answer regional mobility needs. SEG’s Indian division is set to introduce an electric motor designed to power e-rickshaws. The 2kW electric motor, christened the EM 1.2-HR (high range), has been developed to cater to the growing demand for e-rickshaws across many cities in India.
the German R&D centre. “With this new
“With the capabilities and collaboration
facility, we’re able to further expand our
of our Indian and German engineering
research into powertrain solutions for the
teams, we have been able to bring the
future, especially high-voltage compo-
product from conceptualisation to reality
nents in preparation for fully electric
in a record time of one year,” said Anil
15 Kumar MR, Managing Director, SEG
confident that the company has lost
Automotive India in an interview with
none of its bargaining power when
Autocar Professional earlier this year.
it comes to its relationships with a com-
Looking to the future, Bomberg
plex supplier network. “We are a smaller
expects to be at the heart of an increas-
company now, no question. However,
ingly diverse procurement network,
we are still a US$2bn multinational
as SEG further expands its product
corporation and a global player in our
portfolio. “The automotive industry is
segment. Despite the fact that it is
facing a transformation – and SEG
not the size of Bosch anymore, SEG
Automotive will actively shape this
Automotive is still a market leader in
transition towards more efficient
its business fields and will continue
combustion engines, 48V hybrids and
to leave its mark.”
electrification,” she says. As an independent company, SEG may be more agile and focused, but Bomberg is w w w.se g- a uto mo t i ve. com
SEG Automotive LotterbergstraĂ&#x;e 30 Stuttgart Baden-WĂźrttemberg 70499 Germany T +49 (0)711 4009 8000 www.seg-automotive.com