Resideo is a leading global manufacturer and distributor of technology-driven products and solutions that provide comfort, security, energy efficiency and control to customers worldwide. The company is focused on its vision to imagine a world where homes and buildings are good for the planet, where technology works to simplify life. With 130 years of innovation behind them Resideo has a presence in more than 150 million homes globally, with 15 million systems installed in homes each year.
Zoltán (Zoli) Kiss is Sourcing Director for the EMEA & APAC regions. An excutive with extensive operational experience across many verticals, he joined Resideo in late 2018 in his first fully fledged sourcing role.
Zoli, what is the structure of your role?
Sourcing is part of the ISC (Integrated Supply Chain) function. The Strategic Sourcing team selects and defines the partners we engage with, and the buyers in the manufacturing sites carry out the operational role. I am the EMEA Sourcing Director and I have a particular focus on Outsourcing. I report to the VP of Sourcing and my team are based in both EMEA and China – as I also have several vendors from the APAC region. My role includes both EMS and BTS Sourcing. An EMS supplier is a company which manufactures a product for us that we have designed. A BTS supplier supplies its own products to us which are labelled with our requested trademarks.
Part of my responsibilities include being the ESG SPOC for Sustainable Procurement. This involves coordinating the company[1]wide initiatives aligned to the procurement strategy. One of the company achievements that I am most proud of is our silver rating from EcoVadis. This represents a strong demonstration in environmental, ethics, and human rights categories. We have a score of 59 and the EcoVadis industry average score is 43.
view the full content in digital brochure format below
Resideo is a global business. Are their global synergies or do business units run autonomously?
There are both global synergies and individual regional requirements. The focus is on making most efficient use of both aspects depending on the commodity. For example, electronics are used across all regions so it’s important to have a global focus. However, with specific parts that are used in a particular region taking a local approach is best. This includes targeting dual sourcing where possible and having access to low-cost regional supplies with a local source to handle variations in demand. Overall, to get the best outcome sourcing needs to work hand-in-hand with operations and product management.
You have been with Resideo since 2018 within the sourcing function having previously dedicated the majority of your career to manufacturing and operations. Why did you move across to sourcing and what was the remit when you joined Resideo?
I joined Resideo at the beginning of its sourcing refinement journey in 2018 and my key task was to drive consolidation of the vendor base and select strategic partners for future key projects. You are correct that much of my career before Resideo was in Operations. My time in operations has certainly shaped me and it also allowed me to engage with many different types of vendors. My journey has also been significantly influenced by the companies I have worked at. For example, Jabil, is one of the leading global EMS companies. I think they have a unique model, which nurtures entrepreneurship. It was a great learning opportunity in a very challenging environment. I think Jabil has a great customer focus.
What attracted me to the Resideo role was the chance to sit on the other side of the contracts table and negotiate the terms and conditions. It is quite a challenge to pull everyone’s expectations together and make sure the end result is beneficial for both parties. This was a new challenge for me. Throughout the contracts process you also have to make sure that you build strong and trusted vendor partnerships.
How far along your set of objectives have you progressed? Have you achieved everything you wanted to achieve by this point on the journey?
I am pleased with the progress we have made as a team since my first days with Resideo. We have worked hard to develop our comprehensive vendor portfolio which includes new partnerships. However, COVID changed the procurement landscape for every sourcing team in every company. Just like everyone else we had to face the extraordinary and sustained challenges of the worldwide supply chain shortages of certain commodities. However, by working as a team of teams we managed to navigate through the headwinds.
Premier Content Sponsor – Siterwell
As mentioned, the covid pandemic forced the sourcing operations to go back to basics and deep dive into the processes and supply chain. However, when you joined in 2018 one of your objectives revolved around this subject anyway so the task was not new to you. With a background in manufacturing and operations do you believe that looking at sourcing with a ‘fresh pair of eyes’ has assisted your transition and enabled you to bring new ideas to the table?
This is a very interesting question. In operations you want to: keep building on the line continuously, focus on your transformation cost and keep the volume as steady as possible. Moving to sourcing meant a changing set of KPIs. However, I kept in mind my operational background, and way of looking at things, to help when negotiating with vendors.
Sourcing plays a key role in driving innovation. To achieve this there needs to be open and transparent dialogue within the strategic supplier base. Does Resideo look to involve suppliers at the early stages of development? What did you learn about the value of these strategic partnerships during the worst of the covid pandemic? What opportunities exist for new suppliers with Resideo?
We absolutely involve our strategic partners in our development plans and actively look at partners, who can support our vision. The roller coaster of the COVID pandemic really underlines how important it is to have trusted and transparent relationships with your suppliers, and be in regular dialogue about future plans.
Content Sponsor – Jabil
Resideo was recently awarded the Ecovadis Silver award. Sustainability is of paramount importance to the business but from a personal perspective you also have a great desire to drive this. What responsibility do you hold within Resideo for this subject matter?
At Resideo, we are focused on having a positive impact on the planet and making sustainable business decisions. Our goal is to operate in sustainable and responsible ways alongside our supply chain partners. As I mentioned, I am the ESG SPOC in Sourcing, so I coordinate the activities with EcoVadis and other partners within the Sourcing team. We have started to roll out the sustainability ratings for our largest vendors and will continue to expand the list over time.
Since my childhood, I have had a keen interest in protecting the environment and reducing waste. Once I had children it made me even more aware of the importance of taking care of our planet for future generations. The new generation seems to care a lot more about the environment than previous ones. We all can feel the changes in the climate across the globe. Making positive change starts with the individuals, and then communities acting together. I’m proud to work for a company that really cares about the impact of our global business operations on our planet.