Strategic Production Relocation and Cost Optimization
Client & Initial Situation
A medium-sized industrial company with three locations and approximately 450 employees faced increasing production and personnel costs. At the same time, there was a strategic necessity to establish an additional location in Southeast Europe to secure close cooperation with a major customer in the long term and remain competitive.
Objectives
- Establishment of a cost-efficient production site within the EU
- Ensuring delivery capability and proximity to the major customer
- Reduction of production costs and strengthening of competitiveness
- Access to qualified specialists in a suitable target region
Approach – The project was implemented in stages:
- Conducting a location analysis including cost, infrastructure, and subsidy comparison
- Creation of a feasibility and scenario calculation for economic evaluation
- Support in site selection, approvals, and development of the local infrastructure
- Recruitment and qualification of local employees
- Introduction of modern production systems according to lean and quality standards
Your contact person
A strategic production relocation opens up opportunities for efficiency, growth, and competitiveness. Bjelic and Barth provides professional support to companies – from planning to ongoing production – ensuring that risks are minimized and the highest quality standards are maintained.
Solution & Measures
- Selection of an EU location with favorable wage and operating costs as well as good logistical connections
- Establishment of a new manufacturing unit including halls, logistics, and IT infrastructure
- Implementation of lean production processes (Lean, Kanban, value stream optimization)
- Establishment of a local quality management system according to international standards
- Establishment of a flexible supply chain concept between existing and new locations
This is how you minimize risks, reduce costs in the long term, and maintain full control over your production – without the typical pitfalls of establishing a foreign location.
Results / Impact
- Significant reduction in production costs through wage and operating advantages
- Strengthening of the market position through proximity to a strategically important major customer
- Improved delivery performance thanks to optimized logistics structures
- Sustainably increased production capacity through a dual location strategy
