News Article

PI Starts "Maximum On-Time Delivery" Initiative


With a comprehensive initiative, the PI Group is respondingto the tight global supply situation. This is currently affecting their mainmarkets, namely Semiconductor, Photonics, Industrial Automation and LifeSciences. The initiative includes investments of more than 53 million euros toincrease productivity, expand production capacities, and optimize the wholesupply chain. As a rapidly effective measure, together with customers, PI aredeveloping long-term plans regarding specific delivery quantities and dates.Additionally, PI intends to hire a further 240 employees. In 2021, PI createdmore than 170 new jobs.

"The pandemic has rapidly accelerated growth in ourinnovation-driven markets", explained Markus Spanner, CEO of the PI Group."Developments that usually would have taken ten or more years, have nowtaken just two years." The result is unexpectedly strong growth,throughout all the market segments covered by PI. "We are doing everythingwe can to fulfill our customers' wishes regarding planning security and on-timedelivery, even in the short term", emphasized the CEO. "For thisreason, last year PI already increased production of positioning systems andpiezoceramic components by 30 percent compared with the previous year.""However, this is still not enough considering that incoming orders aregrowing even faster.” "With our different measures, we are tryingeverything to alleviate shortages in the short term, and, in the mid-term,provide considerably higher capacities."

Inner-Company Investments of 53 Million Euros
With their considerable investments, PI are following twogoals: Optimizing existing capacities and creating new ones. For this, theplanned budget for 2021 and 2022 is altogether more than 53 million euros. Thecompany can afford to invest this amount from their own resources. Followingthe growth in production in 2021 of more than 30 percent, in the current year,capacity will again increase by 30 percent. This should mainly be possiblethrough digitalization, for example, by rolling out Industry 4.0 principles.From 2023, further production lines will be added. The company will expand all theGerman production sites in Karlsruhe, Eschbach, Rosenheim and Lederhose. PIwill also create additional production capacities in the USA.

Vertical Supply Chain Integration
Moreover, PI has strengthened their Supply Chain Management.The focus is on identifying and setting up regional supply chains. The companyis also setting up an ePortal for suppliers. This enables considerably fasterand better communication with suppliers, and, therefore, vertical integrationof the supply chain to sustainably increase capacity.

Long-Term Planning Secures Actual Demand
To take the pressure off the delivery situation in the shortterm, PI are developing long-term plans together with numerous customers, wherethe actual need determines the delivery dates and quantities. This enables amore forward-thinking manufacturing planning. "With this, our customers benefitfrom both just-in-time advantages and, at the same time, from the reassuranceof being provided with PI's components and systems." emphasized MarkusSpanner. " Thanks to our customers, suppliers, dedicated employees, and ourinvestments in developing our capacities, we have come up with a comprehensiverange of measures to improve on-time delivery."

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