Business/economy

Expanding and improving the service portfolio Bosch plans Global Service Solutions division Enhancing process quality and efficiency

  • Provider for global service solutions
  • Comprehensive approach for shared services
  • Less red tape, better service quality
Effective January 1, 2016, Bosch plans to set up a new division, Bosch Global Service Solutions (SO). It will bring together all the internal and external services offered by the company. As well as continuing successful services such as eCall, customer support, and business process outsourcing, SO will also become the comprehensive Bosch-internal provider of shared service functions relating to administration and sales. The division will emerge from the Service Solutions business unit, which is run by Bosch Sicherheitssysteme GmbH and headquartered in Frankfurt. At a later date, it is to be carved out as an independent legal entity. This organizational change will not affect associates’ terms of employment. “In light of rapidly changing markets, and especially of the accelerated technological change brought about by the internet of things, Bosch will further expand its services portfolio,” says Dr. Stefan Hartung, the member of the Bosch board of management. The Service Solutions business unit has developed very well in recent years, posting continuous double-digit growth. Worldwide, it creates some 500 new jobs each year. In total, the unit currently employs some 5,000 associates.

Focus of the internal and external portfolio
Internally, the company hopes this move will help it continuously improve its processes. The global shared services that already exist at Bosch, or are planned for the future, are to be brought together and given a common standard basis. Bosch has already launched a raft of individual shared-service initiatives in areas such as accounting and HR management. The creation of a new division will give rise to new potential for improving service quality and efficiency, as well as for reducing red tape.

At the same time, the new division’s task will be to further expand its portfolio of services for external customers. Apart from various shared-service solutions for transport and buildings, the focus will also be on customer communication and customer support. Here, the company can combine its technical expertise with the proven capability of an experienced control center operator and communication service provider. In the field of transport, for example, Bosch offers the automatic eCall emergency service in ten languages for leading automakers in 27 European countries. Also in the transport sector, it offers CCTV-monitored truck parking spaces at rest areas that can be booked in advance. For buildings, Bosch already offers cloud-based video surveillance that can be connected to a control center that intervenes in response to certain events. Solutions in the area of customer communication and support include the monitoring and smart evaluation of social media platforms, which gives companies effective support with their marketing and sales activities.

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  • July 30, 2015
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International presence Bosch sees strong growth in North America Further expanding the company’s local activities

  • Significant sales increase in first six months of 2015
  • Investments of nearly 370 million euros planned for the current year
  • Bosch a leading provider and exponent of Industry 4.0 in the U.S.
  • New Thermotechnology plant in Mexico
Farmington Hills, United States/Stuttgart, Germany – Bosch’s business in North America continues to develop very well. In the first six months of 2015, the technology and services company achieved a significant increase in sales in the region, in which it employs nearly 29,000 associates. “Based on the current economic situation, we expect to continue growing through the end of the year,” said Dr. Werner Struth, the board of management member of Robert Bosch GmbH responsible for the Americas. In 2014, Bosch already managed to increase its total sales in the United States, Canada, and Mexico in nominal terms by 8.6 percent to 8.5 billion euros. Adjusted for exchange-rate effects, the increase was as much as 9.3 percent. “We are on track to double our sales in the Americas by 2020,” Struth said. All four Bosch business sectors in North America are performing very well. Mobility Solutions and Industrial Technology have been especially successful, Struth said, and the Consumer Goods and Energy and Building Technology business sectors are recording stable growth.

Investments underscore the region’s importance
Over the past ten years, the company has invested approximately 2.2 billion euros in expanding research and development and local manufacturing. Bosch wants to continue expanding its activities in North America over the next few years as well. “We are planning to invest nearly 370 million euros in North America in the current year. This commitment underscores the region’s importance to the Bosch Group,” Struth said. In August 2015, the company will officially open a new plant for Thermotechnology in Tepotzotlán, Mexico. The site has been producing gas-fired instantaneous water heaters for the Mexican and Latin American markets since June 2015. Plans also call for expanding the Bosch plants in Juárez, San Luis Potosí, and Mexico City, Mexico in the years ahead.

Bosch already further strengthened its local presence last year. In the United States, for example, the company opened its first communication center in Fort Lauderdale, while to the south it began operating a new software development center in Guadalajara, Mexico. This software development center offers programming and application services for the automotive industry and Bosch plants in North and South America. “A strong local presence is crucial in being able to make the very most of opportunities in the region,” Struth said.

Opportunities with connectivity and automation
In North America, Bosch believes that the areas of connectivity, automation, electrification, and energy efficiency in particular harbor great potential. As a result, the company is a leading provider and exponent of connected industry in the United States. At the plant in Anderson, South Carolina, Bosch is optimizing its production processes by analyzing big data, for example. The site is also using smartwatches for its manufacturing activities. These high-tech devices promptly notify associates if a machine malfunctions. Thanks to real-time monitoring, it is possible to prevent disruptions to the manufacturing process and thus gain additional production hours. As a member of the Industrial Internet Consortium (IIC), Bosch is working with a number of American and other partners on concrete use cases of connected manufacturing.

Apart from Germany, the United States is another key location for Bosch in terms of its efforts to further develop automated driving. Since 2011, a team in Palo Alto, which is located in Silicon Valley, has been driving forward the development of functions for the necessary software and sensors, while colleagues in Abstatt, Germany, are responsible for systems integration in the vehicle. Bosch has been performing automated driving tests on public roads since early 2013. So far, engineers have successfully driven several thousand kilometers on both the German A81 autobahn near Stuttgart and U.S. Interstate 280 in California.

Bosch in the Americas:
The company’s presence and growth opportunities at a glance

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  • July 22, 2015
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14th Bosch Global Supplier Award Bosch honors top suppliers More options thanks to connected supply chains

  • Awards for 58 suppliers from eleven countries
  • Bosch CEO Denner: “Strong, long-term partnerships with our suppliers are the bedrock of our success in the connected world.”
  • Many repeat winners
Stuttgart – The Bosch Group has recognized its top suppliers with the “Bosch Global Supplier Award 2015.” This is the 14th time that Bosch has given out global supplier awards. This year, the supplier of technology and services honored 58 suppliers from eleven countries. By presenting this award, the company recognizes outstanding performance in the manufacture and supply of products or services – notably in the areas of quality, costs, logistics, and innovations. “The Bosch Global Supplier Award honors our top suppliers, who play such a key role in Bosch’s success,” said Dr. Volkmar Denner, chairman of the Bosch board of management, at the award ceremony in Stuttgart. “Our suppliers are important partners in helping us shape the connected world. We want to work with them to develop beneficial solutions for our customers.” The theme of this year’s award ceremony was “Power of partnership – connected intelligence.” Bosch continues to believe that long-term partnerships and the early involvement of suppliers are the key to success.

Many repeat winners
Bosch works with some 35,000 suppliers worldwide, and this year the company has chosen to honor the top 58 with the award. Three suppliers are winners for at least the eleventh time, while seven companies have now won the award for at least the fifth time. Almost half the companies honored are headquartered outside Germany, and one-quarter of those are located in Asia. Dr. Stefan Asenkerschbaumer, deputy chairman of the Bosch board of management, used the award ceremony as a chance to express Bosch’s appreciation of its suppliers: “Our successful collaboration with our partners is an important factor in our business success. It plays a vital role in Bosch’s ability to compete and innovate.”

Long-term alliances – drivers of connected solutions
Web-enabled products and internet-based services form one of the cornerstones of Bosch’s future sales growth. Volkmar Denner is convinced that customer focus and customer benefit are crucial for success on the internet of things. This, he says, makes it all the more important to have competitive and connected supply chains. “Our goal is to achieve supply-chain excellence,” Denner says. Strong, long-term partnerships with suppliers are essential to that goal, and are also key drivers of networked solutions. “Trust, transparency, agility, quality, delivery capability, and competitive prices are at the core of our collaboration with our suppliers.”

Getting suppliers involved early
Bosch now wants to involve its suppliers even earlier in the product creation process, and to work with them to develop solutions for the connected world. “In this context, connectivity is by no means only a subject for Bosch. It encompasses the entire value-added chain,” Asenkerschbaumer said. “We will only remain competitive if we all systematically embrace further connectivity.” For this reason, Bosch recognizes particularly forward-looking projects with a supplier award in the “Innovations” category. This year, the winners were IMS Gear GmbH, Infineon Technologies AG, and 4flow. Based in Berlin, 4flow received an award for its support in the development of a globally standardized transport management system. Bosch is using new processes and systems developed by 4flow to organize its worldwide road transport operations even more efficiently and economically.

Further internationalization of supplier base
In 2014, the Bosch Group’s purchasing volume came to some 25 billion euros. Europe still accounts for the lion’s share, at roughly 60 percent of the global purchasing volume. Outside Europe, procurement is centered on China, the U.S., and Japan. Procurement mainly involves production materials such as turned parts, electronic components, and pressed, drawn, bent, or plastic parts. It also includes commodities, operating equipment, services, and capital goods. In growth markets such as China, collaborating with local suppliers is key in assuring the continued growth of the Bosch Group.

Note: A list of all the award winners can be found here.

Video materials:
Industry 4.0 – Manufacturing and logistics
Virtual depiction of the supply chain

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  • July 16, 2015
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Global presence Bosch sees positive development in Australia Member of the Australia-Germany Advisory Group

  • Bosch records successful first half year in Australia
  • Expansion of Australia headquarters
  • Important manufacturing and engineering location
Berlin/Clayton – Bosch is participating in the talks of the Australia-Germany Advisory Group, which is holding its first working session on July 10 in Berlin. The Bosch Australia president Gavin Smith is one of the delegation’s 15 members. “The Advisory Group offers a valuable opportunity for Bosch to help deepen joint understanding of essential market trends and potential,” Smith said at the meeting. “Our objective is to open up new market segments in Australia with innovative solutions and technologies,” he added. The committee is headed by the Australian minister for finance Mathias Cormann and the German minister of state at the Federal Foreign Office Maria Böhmer. It was established in November 2014 by the German chancellor Angela Merkel and the Australian prime minister Tony Abbott.

Bosch sees good long-term opportunities in Australia
The global supplier of technologies and services again recorded positive development in Australia. “In the first half of 2015 our business developed well. We are confident in the market’s long-term prospects,” Smith said. Bosch Australia posted sales of around 300 million euros in 2014 and currently employs some 1,300 associates.

Important engineering location in Asia Pacific
Along with manufacturing automotive electronics, Bosch also conducts development in Australia. Its 200 engineers work predominantly on projects for international automotive customers. A Bosch center of competence for trailer safety was recently opened in Australia, which will host the development of solutions for the global market. In addition, the local engineering team applies its expertise to the areas of energy and rail. “Australia is an important location in our R&D network – both in Asia Pacific and worldwide,” said Peter Tyroller, the member of the Bosch board of management responsible for Asia Pacific.

Investment in new headquarters underlines commitment
The Bosch Group has been active in Australia since 1907. The regional company was established in 1954. Today, all four business sectors have activities in the country at three locations (Clayton, Melbourne, and Sydney). Over the past ten years, Bosch has invested more than 150 million euros in the region. The company is currently investing some 27 million euros in the expansion of its regional headquarters in Clayton, Victoria. The new facilities are due for completion next year. “This investment underlines our confidence in the future development of our business in this region,” Smith said.

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  • July 10, 2015
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