Tofaş is committed to creating and maintaining a supply chain that is financially robust, operationally eco-aware, and reliable from the standpoints of production quality and continuity.

Ever since the day it was founded, Tofaş has always given great importance to increasing localization and to reducing import-dependency in the Turkish automotive industry. In order to support the growth and development of a domestic automotive components-manufacturing sector, the company procures an average of 75% of its inputs other than engines and gearboxes from suppliers based in Türkiye. Tofaş leverages its competitive advantage as a production hub to champion strategic localization. The company will continue to do so with the overall aim of strengthening Türkiye’s supply chain ecosystem and making it globally more competitive. Tofaş is exploring ways to increase the ratio of local suppliers to 90% by 2030. By capitalizing on its strong position within the Stellantis system, Tofaş will play a key role in supporting the development of its Turkish suppliers.

Tofaş is committed to creating and maintaining a supply chain that is financially robust, operationally eco-aware, and reliable from the standpoints of production quality and continuity. Acknowledging that its suppliers are as crucially important to its value chain as its own employees are, the company contributes to suppliers’ continuous development by helping them to achieve organizational excellence and to improve their business productivity and success while also strengthening Tofaş’s own sustainability culture throughout its supply chain.

Tofaş’s procurements fall under three main headings: Direct Materials, Spare Parts, Services & Manufacturing and Industrial Procurements. In 2023 Tofaş’s total procurements budget amounted to EUR 2.5 billion in value. Working with over 3,000 suppliers in the conduct of its procurements processes, Tofaş purchases its direct materials from 141 suppliers located in 14 cities around Türkiye. Tofaş is proactively developing and expanding its supplier network to support new vehicle projects and keep pace with emerging automotive technologies. To that end, the company is in discussions not only with established global companies but also with promising startups both in Türkiye and abroad.

AN EXTENSIVE AND COMPLEX SUPPLY CHAIN

Tofaş works with an extensive and complex supply chain from which, in the main, it procures preformed sheet metal components, forged & cast machined components, mechanical & electromechanical components, electrical installments, molded plastic and rubber components, seats, door panels, vehicle glass, glove compartments, bumpers, mufflers, chemicals, interior & exterior trim, and connectors. In order to ensure and support the continuity of its manufacturing operations, Tofaş also engages in a broad range of service and other procurements such as capital goods and related services, contractor services, maintenance & repair services, training & consultancy services, hardware and services. Owing to the importance of supply-chain continuity, a multifaceted risk-management approach is prioritized in the conduct of purchasing processes and of supplier relations.

IMPROVEMENTS IN PROCUREMENT PROCESSES

Whenever Tofaş considers the procurements aspects of its new projects, it gives particular attention to acquiring advanced technological abilities for the Turkish automotive industry on the one hand and to boosting its own competitive strength on the other. In line with this, Tofaş encourages international firms that are global manufacturers of automotive components to invest in Türkiye or to enter into joint ventures with local suppliers.

GREEN PROCUREMENT

Tofaş’s Green Procurement efforts are grounded in a philosophy both of fostering a culture of sustainability through the company’s supply chain and of drawing attention to products and services whose environmental impact is lower. The goals of the Green Procurement program are to reduce the environmental impact of Tofaş’s suppliers’ production and service-provision processes, to improve its suppliers overall environmental performance, and to help reduce environmental risks.

Tofaş manages its value chain network with an emphasis on efficiency and sustainability. The company cultivates a value chain aligned with the ethical standards and working principles of its stakeholders while simultaneously prioritizing continuous improvement.

Tofaş has formulated and published a Supply Chain Compliance Policy that outlines the standards it expects its business partners to conform to. The company also provides them with guidance on how to do so.

In 2023, Tofaş overhauled its Supplier Portal. The update features richer content and a more user-friendly interface, making it an even better tool for supplier communication and collaboration.

SUPPLIER DEVELOPMENT

In the conduct of all of its procurements operations, Tofaş focuses on establishing and maintaining business-partner relationships while making efforts to help its suppliers to enhance their performance in many different areas such as product design, organizational and technical improvements, quality, cost-improvement, physical and financial risk mitigation, manufacturing process improvement, collective procurement, and sustainability.