“How does a global automotive supplier balance different customer requirements in different markets?”

Tech Talk is a series of interviews that introduce you to some inspiring personalities within and outside of MD and the world of technology, innovation, and more.

In this edition, we met up with Thomas Knoblauch, Manager Change Management at our plant in Mexico to talk about what factors make a global automotive supplier great and how different customer requirements in the global markets affect supplier strategy.

Interview from 12th November 2024

Thomas, please tell us a little bit about yourself. What has been your career path so far and what brought you to MD ELEKTRONIK? 

I´m Thomas Knoblauch, 37 years old, happily married for two years now and I am currently located at our Mexican plant in León. There I’m responsible for bringing the plant to the next level together with the local team. After joining MD 10 years ago as a Key Account Manager, I later led a sales team with the focus on expanding our customer base across Europe and Asia. After 5 years in this role, I took the opportunity to relocate to our plant in Mexico and focus on the operational side of our business. I like to connect people, think solution oriented and create an environment that helps us thrive for a better tomorrow. This was true in my roles in sales as well as now in my role as a bridge between the MD headquarter in Germany and the plant here in Mexico. Besides my passion to find the best solutions for our customers and improve our plant here in Mexico, I´m into sports (CrossFit, Running, Football) as well as working on my BBQ skills – or “Carne Asada” as it is called here in Mexico!

How do automotive suppliers balance the different regulatory and technical standards between regions like Europe, the U.S. and China?

Our customers work with global product standards. They define the technical requirements that products need to fulfil and are binding for any production location worldwide. As a supplier, you need to make sure your internal processes and procedure allow for compliance in all your facilities in everything you do. However, those standards also need to be refined for specific market and/or new regulatory requirements.

As an automotive supplier, this could mean additional requirements in the vehicle with your existing products or require you to develop new production processes or product variations to stay compliant with new standards. As an example, the European Union defined, amongst others, a mandatory rearview camera in vehicles starting July 2024. You need to be aware of such upcoming changes and evaluate how they will impact you as a company. It is essential to work closely with the OEM’s and within the automotive supply chain on how to translate local regulations and global standards to ensure compliance in your products and processes. 

How do you approach the need for customization to fit local market demands whilst ensuring the standardization required for mass production?

At MD, we evaluate customer standards on a global level at our headquarters, translate what is relevant for what we do and make sure we meet or exceed the requirements at all our locations. This is only possible with well-coordinated global processes and integrated systems but also relies heavily on the close interaction between the relevant disciplines like sales, engineering and quality in all regions. That being said, standards are just one aspect. Our customer base is vastly different in all of our regions and in all of our production plants. This means, we have different requirements, focus points and ultimately a different product mix that we need to “bring to life”. For this, you need to be able to have agile and flexible systems and production processes that you can implement in your facilities to achieve the best result for that region. To be specific, this could be a modular assembly station for multiple cables that is available as a base model and then customized for optimal output and quality assurance. What works at our plant in Mexico is not necessarily the perfect approach in the Czech Republic or China. Think of it as a toolbox – a collection of solutions – you pick the right tool for the right application. Having a global team working on these tools as well as sharing local best practices are key elements to enabling us to efficiently follow the standards at any MD location.

How are emerging trends such as autonomous driving and vehicle electrification influencing the types of components buyers are sourcing in MD´s market?

For me it boils down to two things: speed and traceability.

Speed because we see more and more innovative companies that challenge the status quo in the automotive market with intelligent and innovative products and applications. These companies bring tremendous speed and often require new technologies like cables or connection systems to realize their products.  They have a mindset like a software solution company and expect the same speed from their suppliers. Traditional timelines for implementation of new technologies are challenged and pushed to shorten the development cycle for all players on the market. All while, of course, fulfilling all quality and product standards.

At the same time, we see a growing need for traceability – down to the individual part. Specifically, when we talk about applications for autonomous driving. Of course, it is annoying when your radio signal is not working properly. But if your autonomous driving system switches off all of a sudden or is not detecting another vehicle properly, it’s a potentially fatal disaster! As a supplier for data connectivity solutions, this means, you need to have a fail proof production process and traceability, to ensure that every cable does exactly what it is supposed to do 100% of the time. And in every production line worldwide.

What are the key considerations buyers need to keep in mind when selecting future-proof data transfer solutions? 

Again, speed. Speed in delivering solutions, new products, new production concepts to help them be fast and stay ahead of the competition. A software code is changed quickly and sent to the vehicle via an over the air update in short time. However, implementing a new production line because you need a new cable type or connector system for your product takes longer. How long? This depends on the abilities of your suppliers. Having the expertise to react to changing requirements on short notice, is a skill but also a company mindset. You need the right partner who is willing to act at the same speed and has the resources to do so. Otherwise, it will not work. And as an industry, we are getting faster and faster. Looking back, the automotive industry is at its fastest pace of innovation since its beginning. And I don´t see any reason to reduce the pace. We are living in exciting and innovative times and we at MD take great pride in being part of this and providing reliable state of the art solutions to our partners and customers.

Thomas, you’ve worked in multiple regions during your career so far. What are your key takeaways and what are the main similarities and differences?

My experience working with diverse automotive customers across various markets has highlighted both similarities and significant differences. While everyone seeks high-quality products at competitive prices and continuous innovation, their specific priorities and approaches vary widely.

One could be an established global player looking for scaling opportunities due to increased market demands while another company is looking to launch its first vehicle to the market and needs to introduce last minutes changes to the design.  Regional and cultural differences further complicate the landscape, with varying mindsets and requirements.  At MD, our customer base ranges from large volume OEMs that have been in the market for years, to niche companies focusing on luxury, bespoke cars or start-ups that are still in the development phase for their first product. Because of this, the requirements are very different for each of our production locations.  Additional capacities, introducing new cable or connector types or implementing single part traceability into the production are just a few examples that we often need to handle at the same time in the same plant. But being in the business for more than 30 years now, technical know-how is in our DNA. The challenge is to stay on top of the latest technology developments and be able to deploy modular solutions tailored to the customer at the right location.

How do suppliers ensure a reliable supply chain when dealing with complex, high-tech products for various regional markets?

For me it is key to “think global and act local”. Our headquarters-based experts collaborate closely with regional sales and engineering teams to deeply understand customer needs. This allows us to tailor our solutions to specific market requirements, considering factors like local regulations, production infrastructure, and cultural nuances. This could be the same process or production concept for the same customer for the same vehicle that is produced in two different regions. But often, we realize that at least a slight adaption is necessary.

Effective communication and clear expectation management are essential. We leverage our extensive experience to develop solutions that align with both global best practices and local needs. Our headquarters benefits from the insights gained from our global network, while our regional teams contribute valuable market intelligence and make sure our global teams stay up to date. It´s a winning scenario for all parties involved.
But coming up with a concept, is just half of the story. Implementation is equally critical. We develop new processes and tools, often under tight deadlines, to ensure that our solutions function seamlessly in each specific context for a good customer experience. But that is what we do. I always like to say that we are a company big enough to combine financial stability, global presence and scalability while being agile enough to hold pace with changing market requirements. Those are key traits that we bring to the table.

Balancing Global Standards and Local Requirements: The Key to Success for Automotive Suppliers

Automotive suppliers must balance regulatory and technical standards across regions by adhering to global product standards, while being flexible enough to also meet specific local regulations. This requires agile systems that can adapt production processes and products accordingly. Effective collaboration with OEMs is essential for anticipating changes, such as new safety requirements, and translating these into practical production solutions. Additionally, standardization across global facilities is essential while allowing for necessary customizations to meet regional demands, ensuring efficiency and consistency.

Emerging trends like autonomous driving and electrification have increased the need for speed and traceability. Suppliers must develop and deliver innovative solutions quickly, while ensuring quality and safety, especially for critical components. Customers look for partners who can respond swiftly to changing requirements and provide reliable, future-proof solutions. MD ELEKTRONIK excels in this landscape by combining global expertise with local insights, offering flexibility, and maintaining a strong focus on speed, scalability, and innovation, making it a dependable partner for connectivity solutions in vehicles.

High-performance, extremely reliable data connections are the backbone of tomorrow’s mobility. MD ELEKTRONIK is at the forefront of these technologies and leading the way with an international network of experts. Contact us now and find out more about the latest innovations!

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Thomas Knoblauch

Thomas Knoblauch currently works at the MD plant in Mexico and will return to the MD headquarters in Germany at the end of 2024, where he will work as Senior Manager New Markets & Products. He was previously responsible for sales in Northern Europe and for market development in Asia. Over the last decade, he has acquired new customers for MD and successfully supported several vehicle projects up to SOP. Each of the projects involved had its individual challenges that needed to be mastered, especially when working with others across different time zones and cultures. He firmly believes that long-term business relationships can only exist through “win-win” situations and therefore is always interested in finding the best solution for all parties. He loves taking on new challenges and appreciates close contact with customers and business partners from different countries in his daily work, in keeping with his motto: “If you really want to do something, you’ll find a way. If you don’t, you’ll find an excuse.”