Trade Nov-Dec Interactive - page 20

GAT:
Being the former CEO of
Bosch Rexroth China, how does this
experience benefit you in your
current position as president & CEO
of Bosch Rexroth Americas?
Berend Bracht (BB):
Bosch
Rexroth has a “Local for Local”
strategy that drives us to tailor the
business to the needs of customers in
their local markets. In China and in
the Americas, the approach is very
similar. We focused on 1) increasing
the local added-value content; 2)
increasing local purchasing to
streamline the value chain and
reduce lead times; 3) adding local
development resources for market-
oriented regional product develop-
ment; 4) providing expert, local
application support and product
know-how; and 5) building a
high-performing, local management
team. During my time in China we
also equipped and staffed two new
manufacturing facilities. This
experience is proving to be extreme-
ly helpful in our strategic expansion
in the Americas.
Additionally, we have a very
productive trade relationship
between our businesses in China and
the Americas. For example, we buy
wind gearboxes from China, and we
sell U.S.-manufactured products such
as our Rineer vane motors and
pneumatics products to China. Some
of the technologies we develop for
regional needs in the Americas can
be of use in China and vice versa. We
now have many common customers
– Chinese and U.S. companies who
have opened facilities in the other
country. With our close relationship,
we are able to work together to
support these companies.
Finally, expanding one’s own
multi-cultural capabilities is always
helpful. China and really, Asia overall
were a white spot for me before. I
had had experiences in Germany, and
North and South America, but not
Asia before 2004. Learning how to
get organized in a foreign environ-
ment is beneficial on many levels.
GAT:
What were your motivations
for changing the manufacturing
strategy from outsourcing to
investing in local operations?
BB:
There will always be an outsourc-
ing component in any strategy,
specifically where regional volumes
are too low or cost differences are too
high to justify adding the value
locally. But: Local manufacturing and
engineering shortens lead times; it’s
also easier to customize products and
systems for specific customers. We’ve
experienced a wide range of addition-
al benefits, from inventory optimiza-
tion to reduced logistics costs and
faster response to potential quality
issues. Since we sell predominantly
heavy industrial components, such as
hydraulic pumps and motors, reducing
the travel pathways from vendors to
our factories and then on to our
customers makes a big difference.
Quality control is faster, too, since we
can make corrections immediately
rather than having to wait six weeks
for a product to arrive by sea.
W E L C O M E T O T H E C - S U I T E
Interview with
Berend Bracht
President & CEO, Bosch Rexroth Americas
WELCOME
TO THE
C
Introducing New C-Level Executives to the
German-American Business Community
-SUITE
20
German American Trade Nov/Dec 2013
Berend Bracht,
President & CEO, Bosch Rexroth Americas
by Manuel Muhl, GACC
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