Procurement of incorrect raw material can lead to quality hazards. Bhupesh Kanyal, country head, Panasonic Automotive Systems India, spoke to Sneha Ambastha from Electronics Bazaar to make the industry aware about the value of correct raw materials
EB: How does the automotive sector impact the growth of the electronics industry?
In the past few years, the automotive industry has been growing at a healthy rate due to technology upgradation. Economic growth has also brought this sector into focus. In my opinion, this will continue for at least the next decade, and the industry will witness steady growth. Year-on-year, electronics technology is changing rapidly and this is especially the case in car electronics.
EB: Do you agree that there are some gaps in the Indian automotive value chain, particularly related to electronic components, products and services?
I agree that there are gaps, but I feel these have been reducing over the last five to seven years and are narrowing down still further. Yet, there are some products for which India does not have the manufacturing capability, like electronic active components.
EB: How important is it for your business to source the correct components from the right vendor?
The right components are the bedrock of any manufacturing company. We directly supply to car OEMs, so it is very important for us to procure the right product. By failing to do this, we will not be able to meet quality targets.
EB: Do you have any special programmes for ‘Make in India’ suppliers or MSMEs?
We are evaluating local manufacturing activities from many aspects. Once we come up with local manufacturing, we will surely have such programmes.
EB: Are there any plans to invest in capital equipment for electronics manufacturing in the coming year?
We are evaluating local manufacturing activities from all aspects and a decision may be finalised this year.
EB: What electronic components do you procure?
Ours is a car infotainment and electronic components manufacturing firm. Therefore, we require all major electronics like active and passive systems, PCBs, connectors, power supplies, etc.
EB: What are the categories of electronic materials or services that you procure regularly?
Our major procurement is electronic parts, stamping parts, die-casting parts and R&D testing equipment.
EB: Do you have any specific requirements for vendor enrolment?
Every vendor must have quality certification and must pass the Panasonic vendor approval process.
EB: How do you classify potential suppliers?
We classify potential suppliers based on their existing set-up, products, financial health and their management’s willingness to embrace future technologies. After fulfilling this vendor development process, we either approve the supplier, or choose not to do so.
EB: What are the typical ‘hard-to-find’ categories for which vendor development is a challenge?
Plastic 2K injection moulding, flex PCB, electronic active devices and magnetics are a few categories for which vendor development is quite challenging.
EB: How do you find a suitable alternative for a failed (end-of-life) component?
We look out for suppliers who have experience with similar parts. Of course, such decisions are made in close consultation with the car manufacturer.
EB: How do you find a suitable alternative for a component supplier who drops out from the business due to bankruptcy or other business pressures?
We have never faced such a situation in the past as our vendor selection process takes care of such contingencies.
EB: What is the back-up plan in case natural calamities create a scarcity of components or wafer substrates, causing the demand for such components to grow abruptly?
For such components, we always carry safety stocks and have a list of alternate suppliers. Of course, such situations cause many challenges, but we have always overcome them and supplied material to OEMs.
EB: How do you combat the counterfeit or grey market?
Panasonic Automotive is an OEM supplier, so the grey market does not pose a challenge to us.
