Mitel and Gigaset's Bid to Boost Supply Chain Resilience

Mitel has moved IP phone production to Germany through a new manufacturing agreement with Gigaset, reinforcing supply security for European buyers and stabilising global availability.

For procurement teams, the shift reduces logistics exposure, shortens lead times and adds quality assurance via German engineering and highly-automated processes in Bocholt, North Rhine-Westphalia.

“As global supply chains face increasing volatility, we are taking strategic, proactive steps to ensure quality and reliability for our customers,” says Martin Bitzinger, Senior Vice-President of Product Management at Mitel. 

“This move leverages renowned German engineering to enhance device quality and reliability. For our customers, it means predictable access to our trusted products and a robust foundation for their communications infrastructure."

Designed by Mitel, manufactured by Gigaset

Under the partnership, Mitel retains control of hardware design and software development while Gigaset provides precision manufacturing capacity of around one million devices a year.

The model aligns to Mitel’s hybrid communications strategy and creates a platform for future innovation, including AI-driven embedded capabilities that will matter for lifecycle value and fleet standardisation.

German manufacturing supports tighter quality control, robust testing and consistent component sourcing.

For procurement leaders consolidating device estates across multiple sites, that translates to fewer defects, stronger warranty performance and clearer service level governance with a single accountable OEM.

Compliance, sustainability and planning security

Gigaset’s Bocholt facility is highly automated and environmentally responsible, with processes that comply with Trade Agreements Act standards.

That is a material gain for public sector and regulated buyers that must meet origin rules and audit-ready documentation.

The move also supports Scope 3 reductions by cutting intercontinental freight and improving packaging and waste practices in a controlled European plant.

“We are delighted to expand our partnership with Mitel further and, through our production in Bocholt, send a strong signal of quality, reliability and ‘Made in Germany',” adds Ralf Lueb, Senior Vice President Global Sales & Marketing at Gigaset.

“With our highly-automated and precision-driven manufacturing, we provide Mitel customers in Europe and worldwide with the assurance of faster delivery times, the highest quality standards and long-term planning security."

Category context and demand outlook

Desk and cordless phones remain central to Mitel’s hybrid portfolio, supporting frontline roles, emergency response and secure voice.

Despite software-first collaboration trends, the device market remains sizeable, with Frost & Sullivan valuing it at about US$2bn. By anchoring manufacturing in Europe, Mitel shortens regional lead times and strengthens continuity for partners and end users in more than 100 countries.

Chris Pennell, Industry Principal at Frost & Sullivan, adds: “Mitel’s decision to move handset production to Germany is a significant strategic move that strengthens supply chain resilience and reinforces its connection to European markets.

"This transition allows Mitel to leverage Germany’s rigorous and high-quality standards and demonstrates its commitment to long-term competitiveness and customer trust.”

Mitel’s relocation serves as a targeted investment in quality, efficiency and supply chain integrity.

Through collaboration with Gigaset, the company strengthens operational resilience while meeting procurement expectations for reliability, sustainability and innovation.