In order to increase the added value and productivity of the fully electric IntElect series, Sumitomo (SHI) Demag chose LAPP as a new partner four years ago. “We were faced with the question of make or buy. We were looking for a trusted partner who could handle the complete assembly of the individual components for various machine s and reliably deliver just-in-time,” explained the CEO.
He summed up that this partnership developed very positively for Sumitomo (SHI) Demag, “The key reasons are the great core competence as a connector and cable manufacturer, the high process expertise, the lower labour costs through production of the cable sets in the Czech Republic and the lower component and quality costs.” In addition, Lapp has ensured greater transparency in the documents and optimised processes with suggestions for improvement.
Liebig illustrated the differences between the times before and after the LAPP cooperation. “As a manufacturer of injection moulding machines, producing cable sets was not our core competence. As a result, production processes could deviate from the documents and inefficiencies could not be rectified. Despite a high level of flexibility, there was consequently little motivation to correct discrepancies in the documents. There were also high labour costs,” he looked back. This is why this "make" strategy involved high component and quality costs.Thanks to LAPP, this has changed radically, as the production of cable sets is one of the company’s core competencies.
“Thanks to their extensive expertise, there is a clear production process with final testing, and inefficiencies are eliminated. Errors, discrepancies and suggestions for improvement are highlighted by LAPP and corrected in the documents once approved by us.We also benefit from low labour costs through production in the Czech Republic,” reported Liebig and summed up: “The "buy" strategy has meant that component and quality costs have fallen significantly.”
The latest collaboration with LAPP is the new M12L connector, which will soon be used in Sumitomo (SHI) Demag’s IntElect injection moulding machines. Liebig: "We have a lot of plans involving LAPP as a partner on our side."
The latest collaboration with LAPP is the new M12L connector, which will soon be used in Sumitomo (SHI) Demag’s IntElect injection moulding machines