Enchancing competitiveness of European SME iron foundries by full customer service concept fitting together local production and outsourcing

Even during current market boom, competitive operation of customer driven small and medium sized (SME) iron casting foundries in Europe is challenged. Pressures related to customer service, times and reliability of deliveries, series sizes, pricing and rising costs are directed to foundries. An emerging business model for SME iron foundries is presented to enhance their ability to serve wider range of customers and product sectors in sustainable and profitable way. In the presented model, foundry company acts as a full service provider and as a business network hub, providing customers with all the proximity advantages of local resources and service, combined with the benefits and capacity of remote low-cost country (LCC) outsourcing resources. General background of the model and the preconditions for successful implementation of it, are discussed.