HILTI (A): GEARING THE SUPPLY CHAIN FOR THE FUTURE
To make its supply chain fit for the future, Hilti, a global player in the construction industry, is revising its current supply chain setup. In particular, the firm has identified three restructuring alternatives: (1) Low pain low gain: Keep the existing supply chain setup and pursue only minor changes. (2) Consolidate around existing structures: Increase the profitability of the existing structures and consolidate production. Closures of individual plants might be necessary. (3) Greenfield: Exploit the potential of a low-cost region and shift the entire production to new facilities in Eastern Europe. The case takes a look at the different options Hilti has and outlines the underlying strategic alternatives. Learning objectives: While discussing the case, students will specifically learn about the chances, difficulties and trade-offs between different objectives involved with supply chain reorganization.