Network Optimization in 5-Year Cycles at Lapp Group

This chapter outlines the transformation of the Lapp manufacturing network along 5-year cycles. The centralization and standardization framework of the St.Gallen Management Model for Global Manufacturing Networks serves as a foundation to depict the transformation. The chapter starts with a short introduction about the characteristics and challenges of the company. Next, the five strategic initiatives of the past “know-how exchange system,” “site missions and strategies,” “make-or-buy decisions,” “lead buyer concept,” and “product cost calculation” are described. Afterward, the five strategic initiatives for the future “manufacturing IT and digitalization,” “product allocation decisions,” “manufacturing technology decisions,” “strategic logistics,” and “internal SC planning/order allocation” are also described. Finally, the chapter is completed with a summary.