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German industry takes cost-cutting approach with local suppliers – Production in China
German manufacturers are now focussing on their supply chains in China. Supplier development programmes, which are common in Germany, are becoming more prominent in the Chinese market. Companies react to increasing production costs, greater competitive pressure and price cuts, which are demanded from the Chinese government. German industry sees tremendous scope for improvement at their suppliers: Productivity in Chinese factories can be increased by more than a third, whilst scrap and lead times can be halved – which will allow to achieve high cost savings. This is the outcome of a market analysis by Staufen, a consultancy company.
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Successful companies are future-oriented and anticipate major upheavals of tomorrow. With our magazine, we offer orientation and show how companies can overcome the challenges of widely diversified supply chains or the establishment of sustainable processes.
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In times of rapid, sometimes even disruptive change, an organization’s ability to adapt and change is the success factor par excellence. Without a finely tuned culture of change that promotes a pioneering spirit and personal responsibility, it will not be possible to successfully anticipate future developments. In our podcast, business leaders and innovators discuss the challenges ahead as well as new ways and opportunities to flexibly adapt to them.
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