Bufab's strategy

Discovering the Next Solution

In 2023, we further sharpened our strategy to create even more value for our existing and new customers in their increasingly complex value chains. The focus is on creating value based on the customer's current situation and future opportunities through solutions that increase their competitiveness and reduce their total cost.

Megatrends shaping our industry & creating opportunities

Growth white - orange

The C-parts market continues to grow, change, and expand

The market around C-parts and technical components is growing and still fragmented. Our competitors are usually local players operating with smaller volumes and creating less customer value. As Bufab continues to grow, our market share may decrease as our addressable market expands with new markets and product areas.

For Bufab, it is a major opportunity to drive the consolidation, reaching new markets, segments and new customers.

Supply chain white

Demand for a full supply chain partner & increased focus on total cost

The global trend for industrial companies is to reduce the complexity of their supplier base. For proactive companies, data and insights lead to an increased focus on reducing their total cost.

Few players meet the larger customer's demand for global presence, offering, supplier base, and regulations. 

Sustainability white

Demand for Sustainability

Bufab strives to be a leader in sustainability. We constantly strive to ensure that every part of our business positively impacts people and the environment. Creating value for all stakeholders is crucial to achieving our growth targets. 

We work to improve processes and systems to further strengthen our customer value through a sustainable and transparent supply chain. Our sustainability reporting is based on the Corporate Sustainability Reporting Directive, CRSD, and the adoption of renewable energy is a central part.

Our diversity reduce volatility and creates opportunities

Customers

Bufab operates in over 30 industry segments; no sub-segment is larger than 10% of net sales.
The range of materials and applications is vast; each sister company decides where to operate and grow.

Our strategy for profitable growth

Our vision is to become the leading player in the industry of C-parts and technical components. We achieve this by creating appreciated customer value for an increasing number of customers. Through organic growth and strategic acquisitions, we broaden our customer base and offerings towards new and adjacent market segments.

Our Mission

Our mission drives us with pride: to give our customers Peace of Mind  by creating sustainable and outstanding value. It is worth noting that we primarily trade in items perceived to be of subordinate importance to the customer’s end product, while quality and delivery reliability are crucial.

Therein lies the core of our customer value: to take over the responsibility from sourcing to sustainability, quality, and delivery reliability so that the customer can focus on their core business.

Our Strategy 2024-white-EN

Our focus areas

We do this through sustainable procurement, manufacturing, quality, and logistics solutions. Using our global network and expertise, we help customers lower their total cost by reducing complexity and resource needs while ensuring quality, deliveries, and increasingly essential sustainability. 

Overall, it’s about a smooth supply chain where the headaches of sourcing C-parts have been eliminated.

What we did yesterday is not enough to be competitive tomorrow. Staying at the forefront requires continuous improvement. To optimize how we work, we have created Bufab Best Practice. Each sister company is responsible for complying with and challenging Bufab's Best Practice to drive improvements.

But it doesn't stop there. It is also the responsibility of every Solutionist to strive to get a little better every day, both in their own work and in how we work together. Bufab welcomes initiative and supports its Solutionists. Behind every success often lies some failure along the way.

We create significant customer value by actively taking over responsibility and carrying out the sustainability work that our customers would otherwise have had to do themselves. Thanks to our focus on sustainability in the supply chain, where the greatest environmental impact occurs, we significantly improve value for our customers while minimizing negative environmental impact and improving business ethics. 


The focus also means that sustainability is integrated into the company’s internal day-to-day operations. Just like improving processes and systems to make them more sustainable, we create value for our customers, act as good partners, and continue to be good employers. 

Finding optimised C-parts suppliers is a small and often insignificant part of our customers’ operations. For Bufab, it is the core of our operations. Our network of dedicated procurement specialists visits and evaluates potential and existing suppliers and continuously drives improvements to strengthen the value for our customers. Quality, sustainability, and reliability are always priorities, as are new technological possibilities for products and production.

Our goal is always to be able to offer products from the perfect manufacturer for every need. 

Bufab is one of only a few strong leaders in a fragmented market. Our operations are spread over thousands of customers and suppliers in many sectors and geographic regions, reducing our dependence on individual customers and continuously opening doors to new possibilities. 

Using a reliable local partner is becoming increasingly important for customers. Through strategic consolidation involving acquisitions of other strong companies, we are expanding our presence in new sectors, product segments and geographic regions.

The consolidation makes us even more relevant to our customers, who can, in turn, consolidate their sourcing to fewer suppliers with Bufab as a reliable partner. An interesting aspect is that the more Bufab grows, the smaller our market share becomes since the addressable market is increasing. This creates an inspiring opportunity for growth and a greater number of satisfied customers.

Our Fundaments

Our People and Solutionist culture

Being the customer’s partner with the trust to manage their large number of C-parts and technical components makes the customers’ relationship with us crucial. The foundations of everything we do are our employees and our Solutionist culture. We are a family of entrepreneurs who work and deliver as responsible teams, always focusing on the customer.

Decentralized operating model - Empowerment & Accountability

To succeed, we have a decentralized operational model with extensive autonomy and accountability where decisions are made close to the customer and the business. This allows our dedicated employees to act quickly and flexibly, creating trust and substantial customer value.

Financial Targets

Continuous profitable growth

10%

Net Sales Growth YoY
(Organic and Acquired)

15%

EPS growth YoY

Improved profitability

14%

EBITA margin
(to be reached by 2026)

Financial stability

2-3x

ND/EBITDA
(not exceeding 3,5)

Dividend policy

30-60%

Yearly dividend as % of Net profit

Strategy CMD

Bufab Capital Markets Day

Explore more by visiting our Capital Markets Day 2023