German car manufacturers built a good four million cars last year. More than twice as many, namely almost ten million vehicles, rolled off the production line at foreign locations. Against the backdrop of high energy and personnel costs, but also due to increasing competitive pressure in the industry, plant and engineering relocations will continue to be an important strategic option in the future. The success of these measures stands and falls with professional planning and implementation - especially when external service providers and consultants are involved. enomyc author Wolfram Hackbarth explains what is important here.
Both plant and engineering relocations are complex projects that present companies with major logistical, organizational and technical challenges. While plant relocations primarily involve the relocation of production facilities or individual production and service units, the generic term engineering relocation encompasses the relocation of research and development processes to another site.
Both measures are associated with not insignificant risks. Every relocation carries the risk of production delays or even downtime. This can result in high costs. In the case of engineering relocations, there is also the risk of valuable knowledge being lost if employees are not sufficiently integrated into the process or are made redundant. Quality risks also frequently arise because reproducing the usual quality standards at new locations proves to be more difficult than initially assumed. Quality deficiencies are also often observed, particularly in the phase-out phase of the production or engineering unit that is to be closed. Last but not least, there are legal and cultural barriers, the implications of which should not be underestimated - especially when it comes to international relocations.
How companies benefit from working with external partners
Many car manufacturers have neither the resources nor the expertise required for complex relocation projects. This is why external consultants and service providers play a decisive role here. However, the involvement of such partners is far more than a necessary evil. We are convinced that a neutral, external view of the relocation process has several tangible advantages.
External consultants usually have in-depth specialist knowledge and many years of experience in the planning and implementation of plant and engineering relocations. They know the potential stumbling blocks and how best to avoid them. They are also familiar with best practices thanks to their experience from various projects and industries. And while internal teams are often operationally blind, external consultants offer an objective perspective on the relocation process. They can identify weaknesses that may be overlooked internally. In addition, their independence enables them to bring about unpleasant but necessary decisions more quickly.
The relocation of a production or engineering site also often requires additional resources in the form of manpower or technological solutions. External service providers offer these resources as needed and can scale up quickly if the project requires it. Finally, external consultants can identify and manage risks at an early stage thanks to their experience and specialized expertise. By using tried and tested project management methods such as agile planning or lean management methods, they ensure that the project stays on schedule and within budget.
Specialized partners also have a network of experts that they can flexibly integrate if necessary. This can be particularly valuable because the parties involved often only realize in the course of a relocation project that many more resources are needed to manage the project safely. It is then helpful to be able to involve additional personnel quickly and unbureaucratically.
Planning, communication, training and ongoing monitoring: How to make the relocation a success
However, the involvement of external support is not in itself a guarantee of a successful plant and engineering relocation. The following factors should also be taken into account:
- Early planning: The earlier the planning of a relocation begins, the better risks can be minimized and opportunities exploited. Planning should include all areas of the company, from production to IT.
- Transparent communication: The relocation process should be communicated comprehensively - both within the company and to external partners. Open communication creates trust and prevents misunderstandings.
- Training and knowledge management: It is particularly important for engineering relocations that as little know-how as possible is lost. Employees at the new locations must be comprehensively trained and integrated into the processes. Digital knowledge management tools can facilitate the transfer of knowledge.
- Continuous monitoring and feedback: The relocation process should be continuously monitored and optimized. Regular feedback and flexible adaptation to changing circumstances help to ensure that the project is also successful in the long term.
Case studies: Successful plant relocation through enomyc expertise
Over the past five years, we have supported numerous relocations in the automotive industry, both within Europe and from Germany to Eastern Europe. In addition to the strategic approach, the production cost advantage in these target countries also played a key role for many clients. The relocation also enabled the companies to position themselves better in the Eastern European market.
By involving a team of enomyc consultants, the relocation was implemented smoothly and professionally in each case. Thanks to early risk planning and continuous monitoring, both production quality and delivery times remained unchanged. The success of this relocation not only strengthened the companies involved, but also showed how important external expertise is in such highly sensitive projects.
A strong partner increases the chances of a successful relocation
Global competitiveness, cost pressure and market requirements are forcing companies in the automotive industry to strategically realign their production and development locations and, if necessary, relocate them in order to become more efficient and flexible. In order to minimize the associated risks and make the process as efficient as possible, the involvement of external partners is often essential. They not only offer the necessary specialist knowledge, but also the objectivity and flexibility required to successfully manage relocation projects. Early and comprehensive planning, transparent communication and continuous monitoring are further key success factors for a professional relocation. In our experience, companies that rely on external experts have a clear advantage.
.jpeg?width=900&height=650&name=photoeditorsdk-export%20(3).jpeg)