Manufacturing Footprint Strategy
Experience significant savings
Companies often have complex, multi-country networks of production and distribution platforms through which they deliver products and services to customers. Your company is no exception and developing the optimal configuration of strategic operating platforms to deliver your customer service proposition in the most cost effective way is a major challenge. Key questions for companies are:
- Where should we manufacture or source goods?
- Should we make to stock or to order?
- Which products should be made in which plant?
- How many distribution centres should we have?
- Where should they be located?
- Where should we position our inventory to best respond to customer demand?
- How much should we hold?
Answers to all of these questions, and more, must start from a position of clarity on how you want to service your customers; from market positioning, proposition development and differentiation from competitors. Understanding the service fulfilment requirements and their cost implications informs the development of options for the configuration of the manufacturing footprint strategy.
Understand the complexities
Developing the optimal operating network from a cost and service perspective requires a detailed understanding of the market demand, product characteristics and customer behaviours. The elements typically include regionalisation, physical attributes of products, supply lead times, demand velocity, frequency and variability, and uptake of the service propositions. The manufacturing footprint strategy must align with these dimensions.
Overlaying business growth projections and the current network infrastructure gives the full understanding of the landscape to be evaluated and improved.
LCP will work with you to define the best manufacturing strategy and operating platform structure to deliver it, and develop the road map to transition to the future state.
LCP applies supply chain thinking and industry expertise to help you to define the customer order fulfilment strategies, business operating model and optimal asset footprint, by:
- Mapping, analysing and profiling the business’ characteristics (demand, supply, inventory, capacities)
- Analysing the production and distribution economics across sites and regions
- Understanding the implications of your market positioning and current service offers
- Developing the manufacturing strategy to best deliver the service propositions
- Evaluating your current business operating model and informing strategic decisions on make or buy, core and non-core activities, make-to-stock or order, standardisation or customisation
- Assessing strategic priorities and future plans for growth, acquisition or disposal
- Modelling and evaluating manufacturing and distribution network scenarios to identify the recommended solution
- Identifying the process and systems changes required
- Setting out the transitional road map to deliver the change
