Swisslog implements leaner group structure

As a consequence of the consistent focusing on the core business areas — warehouse and distribution solutions and healthcare solutions — Swisslog is streamlining its organization from seven to four divisions, each with worldwide profit and loss responsibility. Over the next two weeks, the detailed structure of the division organizations will be finalized. The new group structure will take effect on April 1, 2003.

The two-core strategy is based on the Warehouse and Distribution Solutions division, which realizes turn-key solutions including Swisslog’s software for warehouses and distribution centers as well as on the Healthcare Solutions division, which offers in-house logistics solutions for hospitals and pharmacies.

The third division, Consulting Services, consisting of the subsidiary Wassermann, is managed as a separate business unit with profit and loss responsibility. The former divisions, Material Flow Systems (without healthcare products) and Robotic Systems will be combined in the fourth division, Material Flow and Robotic Systems. As a result, Swisslog intends on divesting either all or part of this division.

"The new structure reduces our organizational complexity and will play a major role in our ability to realize the targeted cost reductions," reports new CEO Remo Brunschwiler. "At the same time, it will put us in a position to set capacity and potential free and to focus our financial and personnel resources on the continued growth of the core divisions." Those heading the new divisions have the task of finalizing the detailed structuring of the division organizations within the next two weeks.

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