Do you operate a group of companies with several manufacturing sites? Then it makes sense to think about the location strategy. There are two questions to be differentiated. First: Does it make sense to continue operating several sites or is it sensible in the long term to bundle manufacturing at one larger site? Second, what …
One argument in favor of merging sites is the possible merging of administrative tasks, accompanied by a reduction in overhead jobs. However, this possibility also exists in many operational functions without merging the production sites. For example, functions such as purchasing, personnel management, controlling and financial accounting can be performed centrally. Site consolidation can also …
Consolidating sites makes less sense if the sites manufacture completely different products using different processes. Be especially careful about integrating sites that produce high-margin specialties into a commodity operation. These are two completely different concepts that require completely different approaches. A merger can lead to specialties being neglected and the overall margin falling. Consolidating also …
While we have so far only compared the “expansion stage” with the status quo, we must also consider the costs and risks for the move. On the surface, we often consider the pure investment in a new commercial property with infrastructure (supply of electrics, water, gas, etc., hall cranes) and the dismantling, transport and re-installation …
No legal advice can be given at this point. It is merely intended to point out aspects that must be taken into account in the event of a site consolidation. Aspects of collective and individual law must be taken into account when merging sites. The collective law aspects include the fact that a site merger …
The question of consolidating sites must be answered against the background of a long-term perspective. But even in the long term, merging sites does not always pay off. What really matters is the synergy potential that can be tapped. Approach such considerations realistically. A site merger requires cash and is a burden on earnings in …
What are structural costs? Formally, structural costs are all costs for activities that enable, facilitate or support the business. Structural costs consist of personnel costs in the overhead of an and of the .
Personnel costs in the overhead of an organization can quickly get out of hand. Accordingly, it is important to maintain an overview at all times in order to identify corresponding cost reduction potential. What does “overhead” mean in a company? The term “overhead” includes all administrative activities that cause operating costs in the company that …
Leasing fees, rents, insurance premiums, contributions for memberships, costs for updates and information acquisition are structural costs that arise completely independently of the intensity of an organization’s activities. There are always interesting potential savings in this area as well, but they should also be analyzed thoroughly. After all, savings projects of this kind sometimes have …
In an intensively networked business world that has been geared towards efficiency for many years, in which there are hardly any reserves and whose dynamics are constantly increasing through the use of Internet-based communication applications, unexpected upheavals occur more frequently. Uncertainty is increasing. Your challenge is to continue to survive with your company in this …
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