To read the full article in Swedish, click here.
PA industry specialist, Johan Saks, has had a byline article published in NyTeknik outlining how Sweden should follow Germany’s example of coping with competition and high labour costs.
Johan highlights how Germany is a high-cost country but remains stable due to its ability to combine technological innovation with cost effective solutions – in turn reducing production costs.
He writes: “This is most noticeable in the automotive and electronics industries. New models with better performance and increased features are now launched at a lower price than their predecessors.”
For Swedish companies to remain as competitive as their German counterparts, Johan says they need to:
• undertake a systematic cost analysis of all new and existing products
• establish cross-functional teams where the purchase and development department shares processes, targets and incentive systems
• purchase strategies that prioritise partnerships, multi-year contracts and profit sharing
• establish a commercial culture with a good understanding of cost drivers within the organization
• recruit more experts with extensive expertise in cost management and cost analysis.
Johan concludes: “Given that many Swedish industrial companies have been around for more than a century, the interest in maintaining its leading role should be obvious. With a more targeted approach the industry could help to secure the future of Sweden – and offer more jobs.”
Johan Saks is an industry specialist at PA Consulting Group