German–CEE cooperation in practice — from a study visit to partnership

Three companies, one message – the importance of CEE partnerships today

In last week’s LinkedIn post, we reported on the study visit to Germany organised by AHK , where industry representatives and companies from Central and Eastern Europe explored together how closer regional cooperation can make Europe more competitive.

Our LinkedIn post is available here: https://www.linkedin.com/feed/update/urn:li:activity:7383762905458044928

Building on this idea, our Managing Director recently visited Germany again, this time to discuss potential forms of cooperation with representatives of specific companies.

The three companies visited differed in size, structure and challenges, but all expressed the same need: reliable, flexible and competitive partners within Europe.

1️⃣ Small business: overcoming certification and capacity challenges

 

Our first visit was to a small, family-owned company that had previously worked in BMW's supply chain through a Tier-1 partner. That partner had recently ceased operations.

 

Without the required certifications, they cannot supply directly. They are now seeking a partner able to maintain OEM relationships and ensure compliance with stringent automotive quality requirements.

 

This is where we can add value: our technical capabilities and flexibility can help smaller manufacturers remain part of major OEM networks.

2️⃣ Medium-sized business: balancing efficiency and cost pressure

 

Our next stop was a medium-sized injection moulding plant – an inspiring example of automation and disciplined process management.

 

We learned a great deal from them about efficiency and organisation, but they too face challenges with tooling costs and winning new projects. It is a familiar situation: the gap between the high prices of German toolmakers and the low costs of Asian suppliers continues to widen.

 

We see an opportunity in this space: companies in Central and Eastern Europe, including Mitter, can deliver high quality at competitive prices, with geographical proximity and cultural compatibility.

3️⃣ Large business: reshaping supplier networks and strengthening regional focus

 

The third meeting took place at a large company that is reorganising its supplier network and exploring the possibility of relocating part of its injection moulding capacity to Central and Eastern Europe.

 

Their goal is clear: greater competitiveness and supply stability through a more balanced network of regional partners.

 

It was encouraging to see their openness to new forms of cooperation and their recognition that Central and Eastern Europe offers both advanced technological expertise and the flexibility essential in today's rapidly changing industrial environment.

💡 The lesson: the power of meeting in person

 

Regardless of company size or industry, these visits made one thing clear: face-to-face meetings are always worthwhile.
An honest conversation quickly reveals how many opportunities for connection exist between German and Central and Eastern European manufacturers, and how much shared value closer cooperation can create.

As specialists in toolmaking and injection moulding in Central and Eastern Europe, we see every day the benefits of connecting Western European needs with the region's fast, flexible and cost-effective solutions.
We continually seek partnerships in which our in-house toolmaking and series production capabilities enable us to offer both speed and technical depth.

If you face similar challenges or are looking for new regional partners, we would be happy to share our experience.
Let's continue the conversation – step by step, project by project.

Let's get in touch

The most costly delay: when the customer's production line stops

Procurement and logistics in 2025: inventory = survival

Anyone working in automotive procurement or logistics today knows exactly what unpredictability means.

In this post, we explain how we responded to the automotive logistics challenges of 2024.

We show how we had to keep replanning, and what we learned about procurement and inventory management.

Shifting winds: procurement and logistics challenges in 2025

Three years ago, following extensive internal analysis, market research and consultations with experts, our management made a strategic change of direction.

Until then, our two main business areas – injection mould manufacture and series production of plastic injection-moulded components – had supported each other without being offered as a joint market proposition.

Tool trials and on-site servicing provided an effective link. However, we recognised that a real competitive advantage could only be achieved by closely integrating the two areas and offering a comprehensive service based on automotive project management.

We therefore shifted our focus to winning complete projects, with everything from tool design and manufacture to series production handled in-house.

Our primary objective became securing multi-year projects supplying the automotive industry.

Since 2021, two high-volume automotive projects have been launched in this way and are now in series production. We will soon publish detailed case studies about them.

However, recent years have been difficult for both the industry and our company.

A difficult environment: the automotive industry and uncertain supply chains

In 2024, automotive orders declined across Europe. Several of our OEM partners introduced temporary production stops, affecting the entire supply chain.

This led to lost revenue, slower inventory turnover and intermittent shutdowns. As volumes fell, we adopted a more cautious inventory policy.

We significantly reduced safety stocks of raw materials, purchased components and finished goods.

At the end of 2024, this decision seemed justified. Maintaining positive cash flow became the priority: we could not afford to tie up money in stock. Fluctuating demand also called for caution.

Given the unfavourable forecasts and possible project stoppages, we wanted to minimise the risk of being left with surplus stock.

Longer lead times, unpredictable suppliers

When projects restarted, we used existing stocks and ordered materials at our usual pace.

At the end of 2024, however, several suppliers extended their delivery times without prior notice.

Lead times rose from 6–8 weeks to as much as 20 weeks, creating a serious automotive logistics risk. Presumably, they too had adopted a more cautious inventory policy.

By early 2025, it was clear that restructuring safety stocks was unavoidable. Longer delivery times meant planning for higher inventories again.

But the difficulties continued.

A critical supplier failure: how did we respond?

The manufacturer of a component for one of our automotive projects could not even meet the 20-week deadline. A machine failure caused a further delay, with an immediate impact on our production schedule.

A bottleneck developed, putting supply to the customer at risk. Our safety stocks had been sufficient to cover the 20-week lead time.

The additional weeks, however, could no longer be accommodated in the schedule.

Our solutions:

  • We obtained the component by express freight at our own expense, then charged the cost to the supplier.
  • We arranged extra shifts to incorporate the late-arriving components as quickly as possible.
  • In addition to weekly deliveries, we sent express shipments to the customer across Europe. The aim was to prevent their production line from stopping.

Lessons learned

The start of 2025 proved once again that procurement and logistics are strategically critical for an industrial SME.

Supplying the automotive industry requires flexibility, fast responses, proactive inventory management and excellent supplier relationships.

In many cases, it also requires taking greater risks than we were previously accustomed to.