Why Bauer Is Reinventing Its Supply Chain

One of a world’s largest zinc mines lies around 170 kilometers north of a Arctic Circle and about 1,000 kilometers northwest of Anchorage, Alaska. In operation given a 1980s, Red Dog mine accounts for approximately 10 percent of a world’s zinc production. The ground at a site is in a completely solidified state of permafrost. But if a permafrost should thaw, the Germany-based BAUER Group was consecrated to do field tests to determine the steps indispensable to seaside it up. It conducted these tests on jet grouting and cutter soil mixing (CSM) processes, and showed that the latter would be suitable. CSM processes cut up soil, shift it, and mix it with an aggregate. The BAUER Group was also consecrated to erect a secant raise wall with 93 secondary piles, regulating a multipurpose BG 30 cavalcade supply with special Arctic equipment. The dual pieces of machinery involved were grown and assembled by BAUER Maschinen GmbH in a southern German city of Schrobenhausen.

Bauer brought a specialized apparatus by boat and craft directly to a Red Dog zinc cave during a Arctic Circle. Ground improvements are indispensable to opposite a effects of thaws in a permafrost. Credit: Bauer AG

Of special note here is a combination

The family business is listed on a batch sell with 11,000 employees during 110 subsidiaries and sum Group revenues of a good 1.5 billion euros. Its work is divided into 3 segments. The construction shred does large-scale specialized substructure projects worldwide (sales share: 45 percent). The apparatus shred is a tellurian marketplace personality in building and producing appurtenance for specialized substructure engineering (40 percent). And a resources shred is a use provider in a fields of drilling, H2O wells, environmental systems, assembled wetlands, mining, and reconstruction (15 percent). The BAUER Group is positioned as an innovative and frequency specialized provider of products and services for specialized substructure work and compared markets. Its machines can bore, ram, cut, shift, and restrict soil. They are not limited to a Arctic though can see movement anywhere: examples embody building dikes during a Dead Sea in Jordan, fluctuating Bruce Highway in Queensland in Australia, and expanding a pier of Alexandria in Egypt. The heavy-duty rigs can import adult to 300 tons (BG 72), and cost from 500,000 to a good 5 million euros.

The BG 45 drilling supply has a multifunctional design. Only a simple chronicle is standard. Its comforts are blending to customers’ requirements—sometime for a singular specialized substructure project. Credit: Bauer AG

The Bauer brand—a worldwide name in specialized substructure engineering

In 1790, Sebastian Bauer acquired a right to found a copper smithy in a southern German city of Schrobenhausen and began producing domicile utensils, brewery vats, and roof cladding. Around 110 years after Andreas Bauer drilled an artesian good for a inner sight station. A new margin of business was born. His son Karl built a centralized H2O supply complement for a city of Schrobenhausen in a 1920s, followed by wells and H2O systems for other southern German cities and industrial facilities. Karlheinz Bauer promoted a company’s specialization in substructure engineering. In 1958, injection anchors were invented and a obvious filed for a construction process. In 1976, a initial BG drilling supply went into operation, that would turn a concentration of Bauer’s automatic engineering expertise. And in 1984, a association done a initial diaphragm walling machine.

In a 1980s a company’s automatic and substructure engineering activities became increasingly general in scope. Then a owners took a vital new course. They motionless to offer their “made by Bauer” machines to a foe in sequence not to inspire imitators. This incited a specialized substructure engineering association that assembled a possess appurtenance into a globally active organisation that also reserve other specialized substructure engineering companies. “It’s a balancing act,” observes Professor Bauer. “Our business need to be certain that a business fields are apart and their trusted information will not be upheld on within a group.”

Following mixed acquisitions and start-ups, BAUER Aktiengesellschaft was founded in 1994 and went on a batch marketplace in 2006. Activities stretched to embody good construction, hydrology, and geothermal projects. The association put a construction, equipment, and resources structure into place. Synergies among these 3 segments capacitate it to send knowledge from specialized substructure engineering to automatic engineering and thereby foster ongoing further development.

Dams have been one of Bauer’s special focuses for decades. Regional networks around a creation capacitate quick and stretchable deployment of substructure experts and appurtenance to projects worldwide. Credit: Bauer AG

Bauer is a really special form of dark champion. Over a 230-year story a association has constantly acquired new markets and responded successfully to change. “A willingness for change is partial of a genetic makeup,” says Professor Sebastian Bauer, member of a owning family who leads investigate and growth for BAUER Maschinen GmbH. The whole BAUER Group needs this ability too, as a patron structure is intensely heterogeneous. As Bauer observes, “Each patron is different, any construction site poses special challenges, and any nation has a possess dirt and ride conditions. Maximum abyss will be critical in one country, drilling energy in another, and ride weight will be a essential sales pattern in nonetheless another.” That is one reason because any of a approximately 200 large-scale pieces of appurtenance a association produces annually is unique. Only really frequency is one of a machines only like a predecessor. Also of note is a fact that many buyers will wait to sequence their specialized drilling supply or diaphragm wall knife until a agreement they find is confirmed. But afterwards they need to act fast. For a prolonged time a association focused on assembly customers’ needs with processed products that were blending to particular specifications shortly before delivery. BAUER Maschinen GmbH assembled apparatus to “keep in stock,” and therefore had to store a vast series of machines on a premises.

Professor Sebastian Bauer complicated automatic engineering during a Technical University in Munich. As a member of a owning family, he leads investigate and growth for BAUER Maschinen GmbH. Credit: Bauer AG

This form of production carries high capital joining costs. But that’s not all. As Bauer explains, “For a prolonged time we were incorporating a good many functions into our machines so they’d be suitable for scarcely any patron and application, in an attempt to equivocate placement problems and alteration costs.” This “ultra-standardization,” as Bauer calls it, meant that business finished adult with some-more formidable machines than they actually needed. As a result, they only used or appreciated a fragment of a applications their machines could perform. “We’re now in a routine of changing that,” he notes. The overall project is one of vital transformation. New competitors on a market, generally from Asia, are another reason this step is needed. As Bauer continues, “If we wish to guarantee a heading position in general competition, we have to turn faster, some-more flexible, and some-more economical.” The goals are to digest prolongation throughput times, revoke inventory, reduce costs, and boost patron choice. The selected instrument is a supply-chain strategy. “It puts us in a position to addition a simple models in such a proceed that we can yield each client with a mostly customized and singular product—in a quick and streamlined manner,” he says.

The aim is to furnish 80 percent of all machines on elect and to broach them within 6 weeks. In a word, a aim is ambitious. The thought is to grasp this by regulating prefabricated modules and components that are assembled possibly in-house or by suppliers and are already “on a shelf”. When a appurtenance is ordered, a prolongation group can immediately collect a claim components and modules from a room and adjust a altogether pattern to a specific requirements. As Bauer explains, “We’re no longer last a machines’ minute specifications a year in allege and afterwards radically adjusting a whole thing. Instead, we’re convention any particular square of apparatus in a high-speed pointing process.” What’s critical here is to keep a turn of prefabricated tools as low as possible. It’s also transparent that this mutation requires employees to change how they consider and act. “We need some-more coherence here too,” records Bauer.

Strategic mutation with Porsche Consulting

The agreement came in May 2020. Following rough talks with several consultancies, BAUER Maschinen GmbH selected Porsche Consulting as its partner for turning the vision of strategic transformation into reality.

“We wanted a partner who would plea us, and who would turbocharge a progress.”
René Gudjons, Managing executive of BAUER Maschinen GmbH

René Gudjons, Managing executive of BAUER Maschinen GmbH

“Porsche Consulting understands production,” says René Gudjons, a handling executive of BAUER Maschinen GmbH in assign of production, in explaining a choice.” And it has knowledge in handling change.” Transformation was on a agenda, and ideas were already formulated. “We wanted a partner who would plea us, and who would turbocharge a progress,” he says. And that is what happened. The plan is now in a theatre of inner implementation.

“The consultants served as catalysts in accelerating a supply-chain strategy.”
Rainer Rossbach, Managing executive of BAUER Maschinen GmbH

Rainer Rossbach, Managing executive of BAUER Maschinen GmbH

Rainer Rossbach, a handling executive of BAUER Maschinen GmbH in assign of blurb administration, adds: “The consultants spurred us on, put a ideas into practice, and served as catalysts in accelerating a supply-chain strategy.” The organizational changes introduced have also played an critical role. “At a beginning, a routine felt like a teenager revolution, since a subsequent dual or 3 years will be some-more a matter of evolutionary changes,” says Gudjons. Initial successful formula of a mutation are approaching to turn clear in mid-2022.

A successful supply-chain plan for a globally active automatic engineering association positively has to build on current and unchanging data. That is all the more true when it comes to planning. After all, the Schrobenhausen-based company has to expect as accurately as probable that machines will be indispensable on construction sites worldwide in twelve or eighteen months. “For that we need to front-load the routine with a lot of intelligence,” says Gudjons. This requires all a association groups to change a proceed they think. All the departments and all a subfields require plannable processes. Data exchange processes need to be improved as well, both within the group and with suppliers. As Rossbach puts it, “We wish a supply-chain proceed to relieve the distribution and prolongation processes that previously had to contend with far too many ad hoc measures.”


Text initial published in Porsche Consulting Magazine.