Review of the strategy and activities - Outotec
Review of the strategy and activities - Outotec
Review of the strategy and activities - Outotec
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Maintain <strong>and</strong> improve pr<strong>of</strong>itability<br />
Objective<br />
Examples<br />
Procurement <strong>and</strong><br />
Outsourcing<br />
Optimised Cost<br />
Efficiency<br />
Increase Value-<br />
Added<br />
Component<br />
• In order to enhance it operational cost efficiency OT<br />
continuously reviews <strong>the</strong> possibilities to improve <strong>the</strong><br />
efficiency <strong>of</strong> its global procurement operations <strong>and</strong> to<br />
utilize outsourcing <strong>of</strong> non-core <strong>activities</strong><br />
• In order to enhance its structural cost efficiency<br />
competitive position, OT needs to have tight control on<br />
fixed costs <strong>and</strong> management believes that <strong>the</strong>re is a<br />
possibility to increase <strong>the</strong> flexibility <strong>of</strong> <strong>the</strong> cost base<br />
through outsourcing or insourcing certain tasks<br />
• OT will endeavour to fur<strong>the</strong>r increase <strong>the</strong> share <strong>of</strong> its<br />
proprietary technology <strong>and</strong> value adding services<br />
which will be <strong>the</strong> basis for a fur<strong>the</strong>r developed licensee<br />
<strong>strategy</strong><br />
• Increasing sourcing <strong>of</strong><br />
machinery <strong>and</strong> components<br />
e.g. from China <strong>and</strong> India as<br />
well as optimizing local<br />
supply (e.g. Brazil)<br />
• State <strong>of</strong> <strong>the</strong> art engineering<br />
tools to improve engineering<br />
efficiency<br />
• Local task force approach<br />
with OT key personnel<br />
supervision (e.g. Brazil)<br />
• R&D efforts, testing facilities<br />
to guarantee return on<br />
customer’s investment<br />
• Zinc <strong>and</strong> Nickel leaching<br />
technologies; Circoheat<br />
CMD 2007 | 23
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