“How can a small tool reduce the total cost of a customer by 20%?” Many people have this question.

“This involves a complex system. First, we need to understand the specific needs of our customers and understand how they are produced!

Speaking of this feature of Seco Tools, Pavel Hajman is obviously excited. Since 1990, Pavel has served in Seco and has served as Senior Vice President and President of Asia Pacific since last year.

Seco Group is a Swedish-based joint stock company. Before 1931, it was only a steel company's steel tooling department. Today it has developed into one of the world's top five carbide tool manufacturers.

Although the professional word "knives" sounds cold, it can be applied to many fields such as aviation, power generation equipment, and medical care. In fact, when you take an A380, or open a bottle of drink, there is a knife behind it – through the combination of machine tools, small tools have a wide and in-depth impact in industrial manufacturing. And is affectionately referred to by the industry as "the teeth of the machine tool."

In general, this "teeth" only accounts for about 5% of the total cost of the user; then, how does this small 5% sway the entire system to achieve a total cost reduction of up to 30%?

“We have a PCA (Productivity and Cost Analysis) system that measures, controls and manages the production process,” said Erik Sundstrm, Technical Manager, Asia Pacific, Seco. “This includes not only process information such as cutting data, but also productivity and labor. Investment costs such as equipment."

It is understood that PCA is developed by Seco Tools based on decades of experience in the global metal cutting field. With this, Seco can view the customer's manufacturing methods from a broader perspective, evaluate the process of a machine tool in a manufacturing plant or The complete process route of a machined part; and according to this, to the customer: the focus is not only on the cost of the tool, but on the total cost of production!

The PCA report, which has been implemented for many years and covers many industries, shows that Seco Tools can reduce the total cost of customers by 15-30% and increase productivity by 40%! In today's increasingly competitive world, I believe that any entrepreneur who hears the above numbers will not be able to stop.

The competitive advantage of an enterprise must be closely related to its strategy. Even if there is so-called luck, it will not come to a certain company for decades without any reason.

“Working closely with our customers and a solution-oriented approach is our strategic basis; the comprehensive range of cutting tools is another central element of our strategy.” On April 14, Pavel said at a press conference. This seems to be the standard terminology of the Seco Group – in its website profile, similar words are repeatedly mentioned when committing to investors to achieve financial returns.

In fact, a little thought can be found that the above-mentioned strategic elements are unified: only enough knowledge of the customer can provide the solution they need, which means that they must work closely with the customer; Knowing the needs of customers, they have to be able to meet their needs. At this time, a broad product portfolio has played a role.

Open the “Industry Solutions” section of the Seco website, and the six major industries such as aerospace, power generation equipment, and medical care will be presented in front of you; and any one of them will be echoed with a variety of tools. For the user, this obviously saves a lot of troubles such as searching for defects and craft coordination.

In fact, this is also a change that is taking place in recent years: as competitive pressures increase, customers are becoming more dependent on tools in terms of equipment processing.

“In the case of automobile engines, the configuration of the production line equipment in the past was first developed by the diesel engine factory, and then gradually transferred to the machine tool supplier. The trend now is that the tool supplier has slowly taken up this important task.” Seco Tools (Shanghai) Jiang Wende, Managing Director of the company, said.

Fortunately, as early as 20 years ago, Seco was preparing for this.

Seco has divided its history into several stages, “eight years of early catch-up”, “war and post-war”, “investment expansion”, etc. Among them, since 1972, it has been called “acquired by high-quality products and key acquisitions”. The period of expansion. Following the small-scale test of water in Sweden in the 1960s, Seco acquired Carboloy Inc, a large North American tool company in 1986; subsequently acquired French reamer specialists Planche SA and EPB (tool holder system) in the 1990s; Since the beginning of the century, mergers and acquisitions have accelerated, the Dutch company Jabro, Brazil Genos, Russia ALG, France AOB and the United States NCI, etc., all incurred this period.

In Pavel's words, this is a “choice of acquisitions”: they may contribute to the internationalization of Seco, expand sales channels, or extend the product line to enhance existing business or enter new business areas.

Of course, M&A is only one of the alternatives, and Seco has not stopped the pace of innovation. Years ago, Seco proposed the goal of product development – ​​making sales of new products developed within five years account for 50% of the group's revenue, and has been practiced to this day.

“Sometimes the new products we develop can change the customer's processing methods, which greatly improve the production efficiency. This is a revolution in itself.” Jiang Wende said, “The improvement of efficiency often means the reduction of direct investment of customers and labor, equipment, etc. Indirect cost savings."

Of course, this is not the whole solution. In order to actually increase productivity, in addition to a range of high-performance products, it is also important to make the most of these products. The latter usually means a whole set of services such as technical support, advice, new ideas and practical experience.

All of this combined and ultimately presented to the customer is a 15 to 30% cost reduction and a 40% efficiency increase. According to the concept of BP "BEYOND PETROLEUM" (not only contributes to oil), "BEYOND CUT" (not just cutting) seems to be very suitable for Seco - after all, more important than the high performance of your product itself, is the customer really able to Benefit!

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