Localization of Components

In many classic mechanical and systems engineering companies, as well as in the automotive sector, high cost pressure prevails. Especially in companies in which significant savings can be achieved through a reduction of products’ manufacturing costs, a transfer of the sources of supply for intermediate products and components from “classic” suppliers in Europe to countries with low manufacturing costs (“localization”) can be an option.     

This process especially becomes more important in combination with a relocation of production and assembly to these countries.

To source the products from new suppliers with identical specifications and consistent quality, an effective interplay between development, purchasing, quality, controlling, and product management is indispensable.

Within the scope of several relocation projects, PEC was commissioned to help co-design localization projects:

• Development of localization processes & organizations
• Tracking and controlling of the localization progress at the product & component level
• Development of a reporting and decision-making system
• Support with the definition of the scopes of localization