OEM gem

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Supply chain strategy is a powerful driver for Dayco’s leadership in automotive drive system technology.

For 115 years, Dayco’s contributions to advanced drivetrain technology have powered the automotive industry ahead. They invent, design, and build essential engine drive systems for light duty, commercial, off-highway, and hybrid vehicles over a range of industries, both for OEMs and aftermarket.

Just how essential is Dayco? When the pandemic emerged, they were immediately placed on Secretary of Defense’s list of essential businesses. Dayco components are keeping vehicles moving in construction, agriculture, and heavy industry on and off the road. From their headquarters in Troy, Mich., the company operates roughly 50 locations in 20 countries and employs over 4,500 people.

The Dayco pedigree, from their roots as the Dayton Rubber Company to now, is imprinted on a long list of inventions that keep vehicles moving, contribute to fuel economy, and that are built to last. Their assemblies range from rubber components such as belts, vacuum generation systems and components, and highly engineered metal assemblies such as decouplers, dampers, pulleys, and tensioners—the vital internal systems for engines of all types. The most demanding players on the street and on the worksite turn to Dayco, including VW, Audi, Daimler, PSA, Renault, FCA, GM, Ford, Cummins, Iveco, MAN, John Deere, and Caterpillar.

The ability to manage a global supply chain and continuously evolve it in the digital age is the purview of Tolga Tuksal, the firm’s global director of strategic sourcing. In doing so, he is tasked with obtaining the elements of durable design, a Dayco hallmark.

“We’ve spent over 110 years developing, implementing, and executing value-added solutions for our customers and for our environment. That will continue,” he promised, referencing the current state of global markets in the coronavirus age. “As a company renown for product innovation and ingenuity, our goal is to continue to lead the industry for the next hundred years, and hybrid applications are very relevant now. Full electric or hybrid is the reality of today, and the market and consumers are heading in that direction, so we've adapted quickly.”

Dayco recently extended their relationship with Italy’s Politecnico di Torino University to research and develop the technology to support vehicle manufacturers as they transition to hybrid and electrical engine designs, as practically, efficiently, and as sustainably as possible. “It’s very close to our heart because we take the development of new technology very seriously. Innovation is Dayco’s DNA,” he stressed.

Building an Effective Global Team

When it comes to supply chain and sourcing, planning rules the day, and at Dayco, digital tools and analytics bear the brunt of those detail-rich, repetitive decisions. “If you analyze results and define a strategy based on the best use of digital technology, you can repeat the process and find different ways to succeed very fast,” he said. “If you're in a leadership position in SCM you must continuously look for alternative ways of doing things.”

The sourcing team thinks globally and acts locally. “This year we have truly become one global team, communicating in clear, effective ways as we work together for the same objective. With a direct workforce of over 30 in supply chain, we have local organizations in each region, and each manufacturing plant has production planning, inventory management, customer service, inbound and outbound transportation. On the purchasing side we have global commodity, logistics and indirect purchasing, supplier development engineering, VA-VE (value add, value engineering), and procurement finance.”

Sourcing and supply chain professionals are bred for crisis management, and when the stress of a global economic crisis overlays a company’s forward progression, the best of the best adjust on the run, while maintaining unimpeachable standards of excellence.

“If you’re managing in supply chain, everything depends on your demand forecast, production planning, and coordination between each end to end supply chain function. When the demand forecast is uncertain, the most critical aspect of the job becomes making sure to bring clarity and certainty to that forecast by asking many questions, analyzing the information you get from them, and executing carefully. That's probably the most challenging technical aspect of global supply chain right now,” he posited.

“Balance is important, and it’s critical in everything you do. Supply chain strategy has company-wide impact: the way in which you source and manage the suppliers. The end users are the cross-functional team in the company, so hopefully if you have a robust system that takes into account total cost of ownership, and you have criteria that meets the needs of each end user, the chances of having success with your end users will be higher, and the cross functional team may greatly benefit by things that you do or don't do.

“That's just one example looking internally. Externally, supply chain strategy can add a lot of value for your company and customers. Whether you choose to acquire additional capabilities through sourcing or strategic supplier partnership, right supply chain strategy can help speed up new product time to market and enable entry in new markets and customers. ”

Most of all, what is propelling Dayco into the digital age is its people. “We’re a big global and diverse group, but this is the most responsive, most adaptive group of people,” he enthused. “We draw great strength from our diversity and global footprint. Throughout my career I have been lucky to work with many great teams, but this is truly my dream team.”