For the case BOSSARD AG : ENABLING INDUSTRY 4.0 LOGISTICS , critically analyze following

(a) What are the key elements of Bossard’s business model?
(b) What are the key benefits and drawbacks of adopting the Bossard logistics system?
(c) What are the challenges with transferring Bossard’s business model from Switzerland to other parts of the world?

  
 
 
 
 
 
 
 
 
 

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Bossard AG (Bossard) based in Zug, Switzerland, was a leading supply chain service provider helping manufacturing businesses take advantage of new opportunities arising in the digital economy, a trend popularly known as "Industry 4.0." Bossard purchased large volumes of basic components-screws, nuts, and bolts from a variety of suppliers, conducted extensive quality control, branded and repackaged the items for its customers, and delivered them just in time and on short notice to manufacturing sites worldwide. Bossard integrated the delivery of products with logistics solutions, advising customers on product selection, and participating in customers' product development. Bossard's blue "SmartBins" had become a common sight in factories across Europe, and increasingly also in North America and in Asia. Bossard enabled manufacturers to enhance the productivity of their operations through real time data collection and analytics. In Switzerland, the high cost of manual labour had, for several decades, put pressure on manufacturers to reduce the use of low-skilled labour and enhance operational efficiency. Bossard's logistics solutions were thus in high demand, first in Switzerland and later throughout Europe, North America, and some parts of Asia. However, the business model had to be adjusted to fit local client needs, especially in emerging economies. Specifically, Bossard was looking for more ways to participate in upgrading Chinese manufacturing. FROM FAMILY STORE TO GLOBAL CHAMPION Bossard was founded in 1831 as a hardware store. Since the 1950s, it had grown due to rising industrial demand for high quality screws, nuts, and bolts also known as "fasteners"-in the manufacturing industry. From the 1970s onward, Bossard spread beyond Switzerland to serve clients across Europe and later in North America and in Asia, often following existing customers that established factories abroad. Turnover reached CHF 695 million in 2016, up from CHF 485 million in 2012, with solid profitability of EBITDA margins between 12 and 14 per cent in recent years. Bossard employed over 2,000 employees around the world (see Exhibits 1 and 2). Bossard AG (Bossard) based in Zug, Switzerland, was a leading supply chain service provider helping manufacturing businesses take advantage of new opportunities arising in the digital economy, a trend popularly known as "Industry 4.0." Bossard purchased large volumes of basic components-screws, nuts, and bolts from a variety of suppliers, conducted extensive quality control, branded and repackaged the items for its customers, and delivered them just in time and on short notice to manufacturing sites worldwide. Bossard integrated the delivery of products with logistics solutions, advising customers on product selection, and participating in customers' product development. Bossard's blue "SmartBins" had become a common sight in factories across Europe, and increasingly also in North America and in Asia. Bossard enabled manufacturers to enhance the productivity of their operations through real time data collection and analytics. In Switzerland, the high cost of manual labour had, for several decades, put pressure on manufacturers to reduce the use of low-skilled labour and enhance operational efficiency. Bossard's logistics solutions were thus in high demand, first in Switzerland and later throughout Europe, North America, and some parts of Asia. However, the business model had to be adjusted to fit local client needs, especially in emerging economies. Specifically, Bossard was looking for more ways to participate in upgrading Chinese manufacturing. FROM FAMILY STORE TO GLOBAL CHAMPION Bossard was founded in 1831 as a hardware store. Since the 1950s, it had grown due to rising industrial demand for high quality screws, nuts, and bolts also known as "fasteners"-in the manufacturing industry. From the 1970s onward, Bossard spread beyond Switzerland to serve clients across Europe and later in North America and in Asia, often following existing customers that established factories abroad. Turnover reached CHF 695 million in 2016, up from CHF 485 million in 2012, with solid profitability of EBITDA margins between 12 and 14 per cent in recent years. Bossard employed over 2,000 employees around the world (see Exhibits 1 and 2).