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The Value of Value added

Advantages and necessity of local value chains

In the recent past the production and sourcing activities of the German manufacturing industry turned increasingly globally oriented. Today it is common practice to purchase single components or assemblies from foreign production sites or suppliers and to do system integration in Germany. The so-called outsourcing or offshoring is mainly reasoned in cost-savings. But there is evidence that local supply chains may be more favourable than global ones.  In this context the project aims at identifying global and local supply chain structures of selected companies in Baden-Wuerttemberg. A focus is given to electric mobility related companies. The main goal is to analyse pros and cons as well as opportunities and risks of global and local supply chains on the one hand and fragmented and integrated structures (high company-internal value added) on the other hand. The results, which are based on statistical analysis and expert interviews, should enable companies and other target groups to evaluate the benefits and implications in their own context.

Start: 
September, 2014
End: 
May, 2015
Funding body: 
Ministry of Finance and Economics Baden-Württemberg
Budget: 
€39 750
Total budget: 
€74 750