Harvard Business Case on Schott Zeiss
As already mentioned, this approach has the preference because of the fact that is brings many more advantages to the company than do the other approaches.
As mentioned in the previous paragraph the great disadvantage the company has is the great geographical spread. This can be solved by a team-approach. The team-approach will work as follows: One representative of every establishment will come together and will discuss the procurements that will have to be made. This way communication between the establishments will enhance and the teams can easily discuss problems and solutions. This will enhance flexibility and will in the end reduce cost because there can be anticipated more swiftly to emerging changes and problems.
Another advantage is the fact that some departments of establishments that are geographically neighbouring can have mutual efficiencies (i.e: production, purchasing, transportation etc.)
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