New paths to competitive advantage

No choice in the matter

The machine factory Sjørring Maskinfabrik has not always rejoiced about the many new environmental requirements from major customers such as Volvo and Scania.

"Personally, I was a little negative at the beginning and thought that it would prove expensive for us," says Managing Director Mogens Nielsen.

Playing with the big boys

Among other things, the enterprise produces front shovels for loading machines and chassis frames for busses. If Sjørring Maskinfabrik wants to continue supplying to Volvo and Scania, it will have to obtain environmental certification under ISO 14001.

"We experience environmental certification as an absolute requirement, so we have no choice in the matter. If we do not obtain certification, we will be struck off the list of potential suppliers," says Mogens Nielsen, who no longer views the requirements negatively, however.

"If one views it positively, there are many good things about environmental certification. It is good to get things structured and made more effective, and we can tell about it when we talk to possible customers," says Mogens Nielsen.

The enterprise receives advice from external consultants because it does not have the necessary environmental expertise itself. Mogens Nielsen has been very pleased with the cooperation with the consultants.

"It is important to decide whether one wants to play with the big boys or not. Otherwise one risks wasting a lot of money. When demands are imposed, one can just as well start dealing with them. If not, one will be left behind," says Mogens Nielsen.

An analysis of 330 Danish enterprises shows that the more the enterprises export, the more they consider their reputation to be of significance for their sales.

Source: "Global ansvarlighed - Fremtidens krav til danske leverandører", 2001, Confederation of Danish Industries.

On to the small boys

Sjørring Maskinfabrik uses suppliers itself. These are typically local enterprises, some of which only have 10-15 employees.

"We do not yet stipulate requirements to our suppliers. One day we will have to, however. Then environmental requirements will also become reality for the quite small enterprises. Neither would it surprise me if all major enterprises one day impose requirements about both environmental and working environment matters among their suppliers," concludes Mogens Nielsen.

Sjørring Maskinfabrik A/S, Thisted, 200 employees.