For years, supply chains have been increasingly developing into multidimensional, complex and global value chains. In view of the current economic and geopolitical upheavals, companies are currently feeling the pain of how quickly theycan reach the limits of their resilience.
Even in the face of the first COVID-19-related lockdowns, many companies had to admit that they had thought they were on the safe side for too long when it came to sourcing. However, at the latest with the exploding energy, raw material and transport costs as a result of the Russian attack on Ukraine, a rethinking has set in across the industry.
That’s because competition today is between networks, not individual companies.
Thomas Spiess
Member of the Executive Board, Staufen.Inova AG
More flexibility and agility within the supply chain
Two companies that have developed a new joint concept for their supplier relationship are ABB / Accelleron (formerly ABB Turbocharging) and Benninger Guss AG. Turbo Systems is the market leader in the manufacture and maintenance of turbochargers from 500 kW to 80+ MW for diesel and gas engines. Approximately 200,000 turbochargers produced by Turbo Systems are currently in use by customers worldwide. Production sites are located in Switzerland, China, and India. In addition, Turbo Systems has a service organization with a central hub in Baden (Switzerland) and more than 100 service points in over 50 countries with 1,200 service technicians.
In the service business in particular, there are additional factors such as the attractiveness of the portfolio on the procurement market (high mix / low volume, low predictability / sporadic demand, broad product portfolio, currently approx. 3,500 active specifications of cast iron components). The desired level of service could therefore only be generated to a limited extent by a conventional value chain. The two companies have jointly developed a supply chain concept to improve delivery performance, reduce quality deviations and increase flexibility and agility within the supply chain.
The key success factors were:
Strategic partnership
Clear tactical and operational framework, medium- and long-term portfolio planning, close cooperation in the event of delivery difficulties
Technical solutions
Clustering of the product portfolio, printed cores and molds or hybrid solutions, shortened run-in cycles
Logistical solutions
End-to-end transparency with regard to inventory / requirements, flexibility in production planning, storage at the lowest possible value-added stage
Total Cost of Ownership
Optimization of investment costs, reduction of capital commitment
Customer benefits
Increased ability to deliver on customer’s requested date, quick solutions for unexpected needs / non-mover components
The two initiators Tobias Schoch (formerly of Turbo Systems) and Eric von Ballmoos (Benninger Guss) see domestic manufacturing networks and location-based supply chains as having a clear advantage in many areas and are convinced that networks that pursue common interests are more innovative, stable and sustainable.
Thomas Spiess
Senior Partner
STAUFEN.INOVA AG
“The example of ABB / Accelleron Turbo Systems / Benninger Guss demonstrates two key advantages of the concept of a supply chain network management. First, it helps to overcome the classic understanding of purchasing, production, logistics and distribution, and second, the approach always creates the necessary eye level even between very different partners – here the global market leader and there the casting specialist with a digital casting production with a good 100 employees. That's because competition today is between networks, not individual companies.”
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