Smiths hit by outsourcing to low-cost areas

Industrial group Smiths has admitted that it has been hit by supply chain problems after moving manufacturing sites in Europe to lower-cost areas.

The problems have arisen with the group̵7;s medical devices business, which makes products such as drips and ventilation equipment.

Production of such devices was shifted from facilities in Hythe, UK, and Kirchseeon, Germany to lower-cost regions overseas.

The relocation of production had also been affected by problems with enterprise resource planning, the software system used to manage production.

The group said in a statement that the specific supply chain problems had been resolved but added: "Management believe it will take a significant period of time to fully implement a world-class supply chain."

Smiths has around 22,000 staff worldwide, with UK bases at sites including Slough, Watford, Birmingham, Luton and Glasgow.

Image: Smiths has face supply chain problems in low-cost countries

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