Why we decided years ago to increase in-house manufacturing of our Screw Jacks

In-house manufacturing of Screw Jacks pays off – outsourcing carries risks

Screw Jacks: Not long ago, companies with large inventories and high in-house manufacturing rates were often looked down upon. For years, outsourcing, decentralized production, and global supply chains were considered the recipe for success to remain competitive. Strategies focusing on high in-house manufacturing depth, short supply chains, and higher inventory were seen as "outdated" and even mocked by some. Experts said, "It ties up capital."

However, times have changed since global supply chains were disrupted by the COVID-19 pandemic and the war in Ukraine. Today, companies wish they had invested in more inventory years ago. The trend is shifting back. Companies are increasingly focusing on in-house manufacturing, shorter supply chains, and higher inventory. In this article, you'll learn why we decided to focus on inventory and increased in-house manufacturing, and how our customers are now benefiting significantly from this forward-thinking decision.

Study confirms it: In-house manufacturing of Screw Jacks is worth it

In 2015, a study by Karlsruhe University of Applied Sciences and the Fraunhofer Institute for Systems and Innovation Research ISI reached a clear conclusion. The study leader, Prof. Dr. Steffen Kinkel, summarizes the main findings as follows:

In other words: More in-house manufacturing increases value creation. In contrast, companies that outsource a lot have only a small amount of in-house value creation. Link to the study.

Why do companies stockpile raw materials, semi-finished goods, and finished products?

Operating a warehouse with optimal inventory management ensures improved production and delivery readiness. In other words, companies can respond more quickly to short-term requests and projects and are less dependent on uncertain supply chains. The warehouse must have sufficient quantities of production materials and raw materials to ensure a smooth and flawless manufacturing process.

What benefits do large inventory stocks offer customers?

Primarily, inventory stocks simplify the balancing act between supply and demand. The key advantages of inventory management are:

1. Companies can respond to and handle requests more quickly and efficiently.
2. For instance, unexpected large orders can be processed swiftly and easily due to high inventory levels.
3. Customers can expect short delivery times for urgent projects.
4. Companies are less dependent on global supply chains.

What advantage does a high level of in-house manufacturing provide for Screw Jacks?

The strategy of high in-house manufacturing is a truly modern system. It allows us to be more independent and flexible in both development and production.

Our customers also benefit from high in-house manufacturing: supply reliability is high not only for current gearboxes but also for spare parts – for decades. This concept is, literally, sustainable.

Another advantage is short, stable supply chains, as we source a large portion of our raw materials from Germany.

Screw Jacks: Advantages for development projects

With a high level of in-house manufacturing, we can implement development projects for customers more easily and quickly because changes to the design and specification of products can be made more efficiently. This makes us more flexible and faster, and provides greater independence in development and production.

In-house manufacturing offers protection for trade secrets and proprietary expertise. Custom-made parts can be flexibly integrated into production processes. Additionally, producing in our own facilities reduces logistics costs, shortens communication pathways, and lowers coordination efforts.

What we've done at GROB Antriebstechnik for inventory management

1. We've built a new hall specifically to store raw materials of over 6 meters in length and longer. Additionally, we use a system where we can log inventory with QR codes and directly update the stock at the storage location upon withdrawal.
2. The sales team can check inventory levels of raw materials, semi-finished products, and finished goods from their computers, allowing us to immediately inform customers: "Yes, we can deliver in 2 weeks."
3. We also have various interim warehouses that display the current status of an order. This provides us with a better overview of whether delays are imminent or if everything is going out on time.
4. For customers with just-in-time production, we enter into framework agreements and keep the entire annual requirement ready and available in our inventory. This includes components like motors or limit switches, which are currently difficult to source on the market.
5. To meet the demands of a well-functioning assembly process, each department has an overview of current capacities, upcoming deadlines, and current throughput speeds – despite a high proportion of custom-configured parts.

What are our typical delivery times for Screw Jacks?

1. Delivery times range from 2 to 6 weeks.
2. Expedited service with delivery in 5 or 2 days is possible.
3. We usually have at least a year’s supply of each product in stock.
4. Our manufacturing covers most of the parts, including those from suppliers, so we can produce the parts ourselves in case of an emergency.

More about our delivery times you can read here

The key question: What do you, as a customer, gain from our inventory management and high level of in-house manufacturing?

Here are your benefits:

✅ We can deliver faster because our lead times are shorter and we are not reliant on long supplier delivery times.

✅ We are more flexible with new projects and can complete production more quickly.

✅ We make you more competitive by enabling faster delivery to your customers.

✅ We can swiftly implement special projects for two reasons:

1. We have manufacturing in-house.
2. We can draw on our inventory.

To summarize:

Through inventory management and a high level of in-house manufacturing, we can produce quickly and flexibly – and deliver earlier. We can deliver faster, even with special projects. The result: you can supply your customers more quickly. And from experience, we know that timing is often critical. Now it's your turn. Feel free to challenge us.

What else should you know about us?

Since 1945, our family-owned company has been developing and manufacturing drive technology solutions. Our solutions are found around the globe. Our product portfolio includes Screw Jacks, Spindle Drives, Linear Actuators, MINI Cylinders, Linear Chains, and a range of custom solutions we've developed for specific applications.

Want to learn more about our powerful Screw Jacks?

You'll be amazed. Our Screw Jacks are true all-rounders for many tasks in linear drive technology. We cover a wide load range from 0.5kN to 2,000kN. For more details, click here.

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