Sole vs. Strategic Suppliers

When OEMs design new platforms, they involve safety critical component makers in the early R&D stage to properly design, fit and test the components that will eventually go into production

There are two main types of contract relationship that can be awarded, and that is either to be a sole supplier or to be a strategic supplier

If an OEM launches a global platform, a sole supplier would design a product for the platform for global volumes and no other supplier will provide the product for this particular platform

A strategic supplier are held by OEMs in order to maintain the business and grow supplier base over time Sakthi has sole supplier contract for platforms for the following OEMs:

Sakthi’s world-class manufacturing process with full vertical production

Climbing the value chain hierarchy to create value for OEM customers 

In the automotive supply industry, the further up in the value chain hierarchy, the higher are margins and barriers to entry for competitors

Sakthi differentiates itself from commodity suppliers by having superior in-house design capabilities and efficient production processes

Sakthi machines and assembles components as a value- added step to the tests and other validations done at the casting stage, which makes the company a fully vertical operation

Through these processes, Sakthi has transformed itself from a commodity supplier to a strategic component and sub- assembly module supplier

All these factors have helped Sakthi emerge as a supplier of choice, both in India and globally

Sakthi’s success lies in its quality, technology and global presence

Consistently exceeding customer expectations through superior operations and design

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