Customer Connections

Companies can no longer afford to bury their heads in the sand when it comes to sustainability. A new generation of environmentally-conscious consumers are demanding action from companies on sustainability as they insist on a brighter future for the planet.

Fortunately, it’s an area where network infrastructure and industrial electrical wiring specialist, Panduit APAC is stepping up to the challenge in more ways than one.

“Over the last five years, we’ve witnessed a notable shift in customer needs toward sustainability, as evidenced by the increased demand for our ESG plan targeting net-zero compliance and reducing environmental impact,” Managing Director and Senior Vice President Asia–Pacific Harry Woo tells The CEO Magazine.

“Customers are placing a higher emphasis on adopting green enterprise practices and minimizing wastage.”

With a presence in major cities across the Asia–Pacific region, the United States multinational company is already making major strides on this front, and Woo is fiercely proud of the company’s efforts to date.

“ESG revolves around safeguarding our environment, enriching our communities and living our ethical business principles – all for our collective benefit,” he says. “Our commitment to ESG extends beyond words and is at the core of our culture.”

This focus hinges on four key areas: carbon footprint reduction, supporting the circular economy, driving sustainable product innovation and the elimination of waste.

Vital Links

It’s not the only way consumer needs are shaping the way the company does business. “Supply chain resilience has also emerged as a critical aspect of customer needs,” says Woo. “Our clients are seeking robust and adaptable supply chain solutions to navigate uncertainties and disruptions effectively.”

Panduit has been reinforcing its supply chain since January 2018 as a result of economic tension between China and the United States, adopting a ‘Made in Asia for Asia’ approach with a localized production model that aligned with the unique demands and dynamics of the Asia–Pacific region.

By establishing both R&D and manufacturing capabilities locally, Panduit was able to navigate disruptions more effectively, according to Woo. With a motto of ‘zero distance to customers’, the company prioritized proximity and responsiveness.

“This approach not only bolsters our supply chain resilience but also ensures swift support, reinforcing our commitment to meeting customer needs in a rapidly changing environment,” he explains.

The shift unwittingly prepared the company for the immense upheaval that lay ahead. When the COVID-19 pandemic brought the world juddering to a halt in 2020, Panduit suddenly found itself in a surprisingly strong position, thanks in no small part to its robust relationships with local players like J&M Eastern Group and Royaltec Thailand.

“Due to our localization program, we were better positioned to mitigate supply chain disruptions, thus we emerged stronger and captured more market share versus our competitors,” says Woo.

It was also aided by its proficiency in digital marketing, which it had started to seriously develop in 2017 when it set up Facebook pages in localized languages including Indonesian Bahasa, Thai, Vietnamese, Japanese and traditional Chinese in Taiwan.

“The continuous evolution of mobile devices and the rise of social media platforms have shaped the way people engage and interact with businesses online,” he says. “Our proficiency in digital marketing allowed us to quickly divert to have more virtual engagements during the pandemic.”

Collaborative Culture

At the same time, enhancements to Panduit’s company culture that had also been cultivated prior to the pandemic also helped it to thrive against the odds. Woo highlights its 2016 Building the Culture of Accountability initiative as a pivotal moment thanks to its introduction of ‘focused recognition’ and ‘focused feedback’ tools.

“Panduit has deliberately undergone a cultural transformation, prioritizing accountability by instilling a sense of greater ownership and responsibility across all levels,” he says. “Departing from the traditional top-down approach, accountability has evolved into a shared core value embraced by the entire organization.”

Transparent communication in the form of workshops and newsletters, which promoted Panduit’s cultural beliefs, have been key to creating an innovative and collaborative environment.

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“Our collaboration with Panduit was a very fruitful experience. It allowed us to work with a highly skilled technical team and share insightful industrial knowledge in the process. We were very impressed with their professionalism, expertise and collaborative approach.” – Andy Cheong, Director, Eastern Group

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“This transformative shift has empowered employees to exhibit heightened ownership, fostering a proactive and results-oriented culture,” says Woo. “This cultural evolution not only strengthens individual accountability but also contributes to a more resilient and adaptable organizational framework, aligning our workforce seamlessly with the company’s strategic objectives.”

The evidence backs up his claims, with the AP Engagement Survey revealing a hefty rise from the baseline of 68 percent in the mid-2010s to a score of 88 percent over the last four years.

A Strong Position

Longer term, Woo predicts the resilience of Panduit’s supply chain will continue to face pressures but he is confident its unwavering localization efforts will stand it in good stead. The company’s new plant in Johor Bahru, set to open this year, he says is testament to this commitment.

Its focus on digitalization will also better prepare the business for any challenges that lie on the horizon, with a new enterprise resource planning system to help the business cope with a rising volume of digital sales, especially as it homes in on the fast-growing data center space with the launch of a series of power distribution unit products.

Generative AI is another area it is determinedly exploring, with a set of guiding principles for its implementation already in place.

Panduit is also expanding its subsea cable and pipe protection product line following its 2023 acquisition of products and technologies from South Korea marine manufacturer DongWon EN-Tec.

By placing Panduit APAC at the forefront of the mega trends that are shaping the post-pandemic world, and meeting the needs of its customers in the process, Woo has delivered a solid track record of growth, even in the most difficult of times.

“We take pride in consistently outperforming, achieving higher profitability annually, expanding our market share and demonstrating prudent financial management in the face of prevailing high-interest rates,” he says. “Our current standing is notably stronger than before.”