IKD is a company specializing in the production of high-precision aluminum die-casting products. IKD has factories located in Ningbo, Mexico, Malaysia, and Hungary. The meaning of IKD comes from I representing “I”, K representing the pronunciation of “can,” and “D” representing “do.” which combined is “I can do”.
Founded in December 1995 with a registered capital of $2 million, IKD has grown from strength to strength over the years. In the third year since its establishment, IKD created a benefit-sharing mechanism with its employees. This initiative allowed each employee at every development stage to purchase company equity at the net asset volume. “This meant they became a shareholder of the company and partake in the advantages of the company’s development,” discusses Zhang Jiancheng, CEO at IKD. “In the 28 years since the company’s founding, IKD has issued additional shares to employees eight times which accounts for about 10% of the total number of staff.”
Global automotive industry
IKD makes every effort to find ‘the leading enterprises during the development of the global automotive industry’, attract them like Bosch as our customers, and continuously enhance our technical expertise and management capabilities by manufacturing parts, providing products and providing services.
IKD’s partnership with Bosch began in 2004 and provided products to Bosch such as components for wiper system parts, motors, steering, braking system and different kind of parts. In the initial stage of every new project, Bosch will send personnel to train the staff within IKD. “As long as we are willing to learn, Bosch will make a great effort to provide us with any resource to help us grow,” he says. “They continuously motivate us to become a qualified supplier and the best supplier to meet Bosch’s requirements.”
IKD China has become the production base for Bosch in multi-variety and small batch products, offering products and services to Bosch factories globally and at a competitive price. This requires continuous improvement of flexible manufacturing capability, informatisation supporting ability and resilience in the market.
IKD’s vision
Bosch has broadened IKD’s vision and propelled them onto the global stage. This partnership led IKD to establishing its first overseas production base in Mexico which made the company the first Chinese die casting company to set up a factory in the country. “It is a great honour for us to be a supplier for Bosch,” he explains. “Also, Bosch is the most critical strategy customer of IKD. We will keep pace with the best enterprise in the world and can also promote IKD to achieve excellence. This is the cornerstone of achieving sustainable development of IKD.”
Looking ahead to the future of the partnership, Zhang Jiancheng is optimistic that the next few years of the collaboration are bright. “IKD will create volume for a more competent supply chain for Bosch,” he says. “At the same time, Bosch does not blindly ask for a reduction in price for their suppliers. Instead, it assists supplier growth to help us continually reduce product manufacturing costs, reduce waste, and make us more competent in price. The cooperation between the two sides is mutually beneficial. IKD responds positively to Bosch’s slogan ‘Invent for Life’ and wants to continue as the strategic supplier to Bosch which strives to become the outstanding supplier within Bosch’s supply chain platform. The cooperation between two sides is based on equality, multi-benefits, share needs, and coexistence.”
Find out more in the latest issue of CPOstrategy Magazine.