Regionality = Sustainability

The pandemic and the war in the Ukraine have caused many things to be reassessed. Regionality has gained special importance. Lean global supply chains continue to exist, but supplier proximity has become increasingly important. Before Corona, EVVA was already focusing on a high level of added value and regionality, because

• this makes us more independent of distant suppliers, which increases security of supply and reduces potential delivery difficulties in times of crisis. This regional value chain strategy has guaranteed us and our stakeholders a high security of supply during the pandemic
   
• the shorter transport routes mean less CO_² emissions and thus contribute to climate neutrality
   
• working with nearby suppliers helps to keep jobs in the region

All these benefits can compensate for, or at least cushion, the higher costs of regional procurement channels. A high proportion of regional suppliers therefore has an impact on the economy, the environment and society.

Analysis

The “Logistics & Purchasing” department at the EVVA headquarters is responsible for the group’s central purchasing and has analysed its regional proximity of suppliers:

• To be able to manufacture high-quality mechanical and electronic access systems, EVVA co-operates with around 400 suppliers. They satisfy our need for raw materials for production (mainly brass) as well as product components and tools, etc.
   

Share of suppliers by materials

• Of our top 100 suppliers, 57 come from Austria (41 of them from Vienna, Lower Austria, Burgenland). Around 54% of the purchasing volume of the headquarters is realised near Vienna (distance less than 500 km).
   

Very high percentage of regional suppliers

As practically all materials and product components for the international EVVA Group are purchased via the headquarters in Vienna, EVVA defines suppliers within a radius of 1000 km as regional sources. The vast majority of our suppliers are based in this area. EVVA has achieved its goal of increasing the percentage of regional suppliers from 93 % to over 95% by 2024! In 2024, we will be at 97% because EVVA is procuring more components from Europe and no longer from overseas.

We speak of ‘regional’ rather than ‘local’ suppliers. There are two reasons for this definition: On the one hand, in the sense of a ‘Europe of the regions’, with which the EU wants to support regional independence. In terms of CO₂ emissions, a supplier from nearby Bratislava is no less regional than a supplier from the more distant Austrian Vorarlberg. On the other hand, because many material manufacturers that are essential for EVVA, with whom we have maintained very close business relationships for decades, come from Central and Eastern Europe.

Share of regions in total purchasing sales (2022)

• EVVA purchases the vast majority of materials and components from European suppliers. And approx. 4% of the material and components are from Asia (mostly India), such as key bows, key fobs or Nirosta parts for electronic handles
   
• Very stable and long-standing business relationships: EVVA has been associated with its main suppliers for decades, often over several generations. In figures: EVVA has been in close business contact with 70% of regional suppliers for at least 25 years

Challenges

As the above list shows, EVVA cannot obtain all the parts required for production from regional sources. For certain product categories there is practically no competitive local industry anymore. The production of fittings for electronic access systems, for example, is labor-intensive and the purchase of raw materials is more expensive than buying finished products. At the beginning of the 2000s, the European hardware industry migrated to Asia, particularly to China. But this also brought with it difficulties arising from different corporate cultures, working methods, communication and distance. These challenges were compounded by the lack of transparency in supply chains. EVVA has therefore taken a new approach in terms of fittings:

Strengthening the hardware industry – from Asia back to Europe

In 2023, EVVA rebuilt a former fittings production facility in Lithuania together with one of its European suppliers from the fittings industry (d line in Denmark). EVVA and d line were thus able to shorten reaction and delivery times, bring raw material processing back to Europe and ensure quality standards in their own production. The further advantage: the supply chains are more transparent and closer.