Value chain management

Value Chain Management

Business model

The business model of TenCate focusses on value chain management. This is based on four pillars:

  • Technological innovation
  • Cost leadership
  • Product differentiation
  • End-user marketing

Technological innovation

If the manufacturing industry is to survive in the longer term, it must be innovative. TenCate seeks to be a leader in technology. The development and production of high-grade materials with specific functional characteristics and high quality demand high-calibre development and production resources.

The ongoing innovative development of digital finishing concerns for TenCate not only future products. Existing products will also be able to be produced in a much more efficient and environmentally friendly way. TenCate can better anticipate customer-specific requirements. And economy of scale will take on an entirely different dimension in mass customization and on demand delivery.

Cost leadership

Business economists have long asserted that companies must choose between volume production (cost leadership) and product differentiation (specialties). By means of a balanced product portfolio, TenCate is able to achieve a certain balance (two-track strategy). With indivisible production resources it is almost impossible for TenCate to focus fully and competitively on specialties, unless over time sufficient critical mass in specialties is attained. Partly in view of the ever shorter production life cycles, TenCate will always produce a part of the product portfolio for volume markets. These products must nevertheless meet the high quality criteria that TenCate strives for.

There will be a gradual increase in the proportion of customer-specific products and specialties. This must be accompanied by an upgrading of selling and distribution resources. Particular attention is paid to the field of efficiency and (product) differentiation. Cost advantages are achieved by cooperating more internally, for example in the field of purchasing and IT. Control of working capital is also an important area of attention.

Differentiation

TenCate has been known in the market for many years as a development partner for functional materials. TenCate is actively engaged in marketing a stream of new products and developing new applications for its materials. New developments are reported each year. 

Markets change, requirements become stricter, legislation changes and standards become tougher. These are important reasons to adapt or build functional characteristics into materials. For TenCate increasingly tough requirements represent an opportunity. Product development involves fixed processes in which commercial factors as well as manufacturability and reproducibility are assessed.

End-user marketing

TenCate wants to know what concerns end users and what their needs and requirements are. TenCate therefore steps outside the traditional role of supplier. TenCate draws inspiration from the challenges that the company sees in direct contact with the end-markets. This does not mean that TenCate deals directly with the end user. 

The company makes the market aware of the possibilities and thereby endeavours to exert an influence on the specifications, quality criteria and / or functional requirements of end-users. TenCate conducts a transparent industrial brand policy, in which specific functional characteristics are clearly communicated.

Blue fabric (Tecawork Blue 65287)