TESA: Time to market a critical differentiator within the tower industry supply chain

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Leading steel fabrication specialist TESA explains their move into tower manufacture

TESA is a specialist steel manufacturer with a broad range of products aligned for BTS sites. In 2012 TESA ventured into manufacturing of towers. TESA has historically manufactured steel perimeter fencing for various network operators in Africa, while also manufacturing other steel passive infrastructure sub-components required on BTS sites. After recently partnering with Danish tower design engineers Ramboll Telecom as the official licenced partner for the SADC region, with exclusive manufacturing and distribution rights, the outcome of this exciting partnership sees both companies combine their respective expertise in steel fabrication and tower design which adds to TESA’s bundling of passive infrastructure products. The alliance provides the industry with an alternative for optimised designs, manufactured in Cape Town and bundled with current product offerings.

TowerXchange: In the telecommunication infrastructure ecosystem, where does TESA fit in?

Anni Bodington, Managing Director, TESA:

While it is not our intention to compete with the mass tower manufacturers established in the market, TESA possesses much knowledge and expertise in the field of mass light steel fabrication and design, earning a reputation within the telecoms community for quality products, exceptional service offerings and adaptability to ever changing specifications within the market.

Continuous improvement to meet blue chip and international quality and audit requirements through innovation with integrity in business has been our focus. Key competencies are many and diverse with high volume manufacturing processes winning significant market share in our core products.  The company is a specialised steel manufacturer, with a broad product range aligned for BTS sites.  Our commitment to superior service levels and viewing our customers as long term partners has resulted in a series of lasting value partnerships.

TESA was founded in 2001 only entering the telecommunications sphere with steel perimeter products in 2008. Initial product offerings have shifted and the company has evolved and diversified to include many of the steel products required on a BTS site providing a single point of contact, enabling the sourcing of most steel products required for passive infrastructure, now including towers and audit, strengthening and validation services. It was a natural progression to tower manufacture.

TowerXchange: Where do you see yourselves fitting into the market now that you have recently manufactured your first towers?

Anni Bodington, Managing Director, TESA:

We believe the market has dictated our diversification. The total passive infrastructure solution model is increasingly in demand as a result of the change in the towerco landscape with operators aggressively pursuing tower sharing to reduce costs. It is our belief that TESA needed to diversify and to do this, set ourselves apart by bundling our current steel products with towers. Traditional products included perimeter fences, solar panel structures and supports, generator enclosures, antennae brackets, gantry poles and tower templates.  The ability to offer these components to the client from a single point of contact, in a timely manner is advantageous to our market base.

Partnering with Ramboll for tower design was the next step in our efforts to provide a full steel product offering.  The first towers were manufactured in the last quarter of 2012, which attracted positive comments and feedback from our clients regarding the ease of erection with the Ramboll tower design and short lead times with SADC content towers.

The plan is to focus on a niche within the tower manufacturing market, namely short notice requirements within the SADC, Central and East Africa region, offering certain tower families within the Ramboll design, and quick build solutions.

TESA recently undertook a project in Lesotho working with the client to design a solar structure for off grid sites. The client needed short notice towers, fencing, solar panel structures and TESA met their challenging requirement within a couple of weeks. All the steel work required for the project, namely towers, solar structures, gantry poles, generator cages, antenna brackets and perimeter fencing arrived simultaneously in the same containers. We are also currently working with an OEM for a hybrid solution, to increase our bundling options.

TowerXchange: Time to market is critical when rolling out new sites and upgrading sites for capacity or hybrid energy. How is TESA able to ensure the fulfilment of purchase orders in a timely manner?

Anni Bodington, Managing Director, TESA:

We really do concentrate on the logistics side of the business, planning for short notice orders and are also known for quick response and supply. This requires a lot of careful planning of stock levels, as well as careful procurement given fluctuations in currency.

TESA specialises in projects that do not have time to wait 12-16 weeks to import steel or completed steel products.  Our niche is supporting rollouts and retrofits where time to market recan be a significant differentiator. Our setup may be small, but it allows for us to manage every detail. We forecast and hold certain elements in stock, with absolute attention to detail which enables us to meet essence timelines.

Of course, it also helps that we communicate with our clients as the pipeline knowledge is critical for effective and efficient manufacturing and logistics planning. Innovative solutions to maintain margins and reduce price are constantly explored. Creative ways to increase capacity, infrastructure and engineering resource offer solutions to meet demands. The re-design and ramp up in our factory for tower manufacture is on track. Recent developments at SA steel mills however have added a further supply challenge which makes communication more critical than ever before.

TowerXchange: Who are TESA’s clients? Who are your operators? Do you use manufacturers such as Ericsson or ZTE? Or do you sell through turnkey infrastructure subcontractors?

Anni Bodington, Managing Director, TESA:

TESA partner with turnkey infrastructure implementation companies assisting and advising on steel work components and designs to meet specific client requirements.  We are fortunate to have preferred vendor status and approved specification with a number of African networks but most mobile network operators do not order directly. MNO’s would specify and approve the order, but the PO is issued to the OEM, who in turn orders through their turnkey infrastructure subcontractors. It is our hope that with the support of Ramboll, we will be specified as tower suppliers shortly and are already working at network level to ensure this.

A large majority of our business comes from turnkey contractors with whom we have formed lasting relationships and who year after year consistently rate TESA above average in the annual ISO 9001:2008 customer satisfaction survey. We have received four international awards and yes, TESA are preferred vendors to Ericsson and ZTE, amongst others.

TowerXchange: Finally Anni, what is it like for a woman running a business in the “old boys network” that is the African tower network?

Anni Bodington, Managing Director, TESA:

To be frank, it took a number of years for the company to be considered serious contenders as suppliers in the industry. Having a woman at the helm was not to our credit. Over time though, jokes have emerged that TESA is a woman-run company with ‘balls of steel’. Balls we have plenty of and steel manufacturing is our game.

I simply am not one of the boys and have focused on areas which are beneficial to growing the business through membership, boards and Advisory Councils such as Enterprise for Woman, Councillor of the Cape Chamber of Commerce, Head of the Woman’s President Organisation (WPO) of South Africa, member of International Woman Entrepreneurial Challenge (IWEC). These have all been great initiatives in opening doors as well as aiding the growth of TESA. The company values partnerships. Partnerships are built over time with exceptional service and we endeavour at all times to partner with exceptional companies. The company vision is to be a leading supplier of steel passive infrastructure products and this is not gender specific.

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