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Borgers Group, a fifth generation owner-managed family business producing textile-based sound-proofing solutions for the European automotive industry, has established production facilities all over Europe, including three factories in the Czech Republic. The company has a track record of quality and innovation and is a supplier to all automotive companies in Europe, including Audi, BMW, Bentley and Mercedes. While Borgers' largest production facility is located in Germany, by 2006 most of its employees work in the Czech Republic. The Czech facilities operate at an advantage in terms of labor cost, proximity to client's production plants and lack of unions. Furthermore, Eastern European markets are growing. Should Borgers restructure its supply chain and relocate its HQ to the Czech Republic?
Students will have to analyze the advantages and disadvantages of restructuring the supply chain of a company that has been active in the automotive sectore for more than a century. Issues to be addressed include: logistics, cost structure, innovation cluster, future of the automotive sector, competitiveness