Importance of Material Procurement Processes and Domestication Studies in the Manufacturing Industry: The Case of Domestication of the Secondary Brake System Resistor of a Rock Truck

The machinery manufacturing sector is one of the most strategic industrial sectors in the Turkish economy, playing a vital role in manufacturing by providing industrial support, employment, and economic value. However, the heavy dependence on imported critical components in machine and equipment production increases the foreign trade deficit and highlights the importance of localization efforts. This study examines the effects of material procurement processes and localization strategies in the manufacturing industry. Focusing on the localization of the secondary braking system (retarder) resistor used in rock trucks, the study first analyzes procurement procedures and engineering decision-making mechanisms. It then evaluates the technical and economic advantages of domestic production. The study found that transitioning the imported retarder resistor to local manufacturing provided significant economic and logistical advantages, including an 85% cost reduction and a drastic improvement in delivery time. These findings demonstrate that the effective implementation of localization policies in the industry can enhance competitiveness by reducing production costs and improving procurement lead times.