Alfdex, which is a joint venture owned by Alfa Laval and Haldex, provide the global truck and diesel engine market with its products and is for the moment market leader. The future demand will however exceed their current capacity within five years. To avoid that any decision will be made ad hoc this project will identify some essential factors that are significant for a future expansion of production. This will thereafter be adapted for Alfdex situation to recommend where they should expand their future production based on an objective perspective.
Investments in offshore manufacturing have in a historical perspective been taken as a series of separate decisions with a strong focus on cost reduction. This kind of cost is typically narrowed to the cost of purchase or manufacture. The total supply chain costs are hardly ever considered. Investments need to be reviewed within the context of a company´s total market and manufacturing requirements. This will prevent unwanted issues such as extended lead times, greater buffer stocks and excess capacity, uncoordinated strategic responses, conflicts and the failure to be profitable.
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