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Bossard AG Enabling Industry 4 0 Logistics Worldwide Case Solution

Solution Id Length Case Author Case Publisher
2707 1554 Words (6 Pages) Klaus Meyer, Alexandra Han Ivey Publishing : W17605
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Bossard is a logistics company determined to establish itself in the worldwide market. Their business model offers product lines along with product solutions. They work to optimize the manufacturing and production processes. They make use of technology adoption to facilitate timely and low-cost delivery of products required for manufacturing. Their concept is based on lowering the total cost of ownership for the manufacturer. There are several benefits of this system, such as low cost, optimization of the process, greater profits as well as the lower cost being attributed to the manufacturer themselves. However, in order to bring itself to markets outside of Switzerland, Bossard has to face numerous challenges. These include establishing the missing infrastructure along with convincing the factory owners to adopt its system. Bossard also has to find and retain good distributors who share the values of good quality products and services. Thus, it must start small and focus on long-term growth in countries outside of Switzerland.

Following questions are answered in this case study solution

  1. What are the key elements of Bossard’s business model?

  2. For a manufacturing business, what are the key benefits and drawbacks of adopting the Bossard logistics system?

  3. What are the challenges with transferring Bossard’s business model from Switzerland to other parts of the world?

  4. As a sales representative for Bossard in China, how would you grow the business?

Case Analysis for Bossard AG Enabling Industry 4 0 Logistics Worldwide

1. What are the key elements of Bossard’s business model?

Bossard’s business model is essentially to offer product lines along with product solutions. They also offer application engineering in order to provide better logistical solutions. The primary focus of the organization is to sell value-added components which are to be produced. They accomplish this by purchasing the components of these products in bulk. This ensures that the components purchased are able to be available and utilized for manufacturing later. Usually, Bossard would be able to sell these components to the producers after quality control. However, the business is able to offer products along with reduced costs for keeping the raw material (i.e., components). Furthermore, the organization also has the capacity to offer real-time information through its logistics capabilities. This is assisted by their technology adaption. And they are able to analyze the needs in their supply chain as well. In lieu of that, the trust of their customers, high standards and technology are the key elements of Bossard's business model. They are operating on the idea of maintaining a close relationship with their customers and that the customers' success means Bossard's own success as well. Furthermore, the organization also maintains the quality of products they give their customers. In addition to products, they provide extra support in terms of consulting. Their technological adaption is relatively strong as well. They have become technologically advanced with their services provided to their customers. These include data analytics. Their “Smart Bins” and “Smart Factory” approaches make them uniquely positioned to help their customers with their supply chain. It is important to point out that their customers and clients are the key features of their business model. All their approaches and strategies are customer focused. It takes an individual approach to each of its buyers to determine their particular needs. Their adaption to technology allows and enables them to do this very successfully. 

2. For a manufacturing business, what are the key benefits and drawbacks of adopting the Bossard logistics system?

There are several benefits and drawbacks for a manufacturing business adopting the Bossard logistics system. Firstly, the Bossard logistics system aims to optimize its logistics such that manufacturing productivity is increased. Real-time data analytics with algorithms that optimize the ordering and parts flow processing is a key benefit for manufacturing businesses. This system would directly impact and enhance their productivity. Therefore, allowing them to produce more in less time garner greater profits and lower costs as well. In turn, increasing revenues for themselves.

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