Supply Chain Mindmapping Mindmap for European operations ...€¦ · FOOTPRINT DESIGN BUSINESS...
Transcript of Supply Chain Mindmapping Mindmap for European operations ...€¦ · FOOTPRINT DESIGN BUSINESS...
FOOTPRINTDESIGN
BUSINESS STRATEGY
DEVELOPMANAGEN
Sales strategy
Consumer markets
Product assortment
Service model
footprintSourcing
Manufacturing
Customers
Suppliers
Value add strategy
SLA’s
Company ethics
Holding structure
Compliancy
incentives
Tax legislation
Company structure
Customs
SOX
IFRS
Risk portfolio
Financial model
Tax and legal rulings
CO2 footprint
Revenu strategy
Supply chain strategy
Risk management
Corporate guidelines
Proces improvement
Proces analysisChange management
KPI management
Lay out optimization
Manage life cycle cost
Market standards
Improve performance
User/Customer
Legal/Regulatory
Market
EnergyLighting
HeatingWaste
Maintain value
Adapt to changing requirements
Sustainability
Building Management
The days when a company could (successfully) serve the European market from a central distribution centre are a thing of the past. The market has become too big for that, especially in view of the current growth and expansion in Eastern Europe. It is time to review the situation. Should companies set up satellite DCs? Establish new net-works? Supply Chain Movement, Goodman and Riverland have produced a handy mindmap to illustrate the route, including road signs indicating potential hazards along the way.
Mindmap for European operations footprint
Supply Chain Mindmapping
The mindmap’s creators:
MINDMAP MANUAL
1 2
34
PLAN
SOURCE
Network design
Gravityanalysis
TCO
Incentives
On balance Turn key
Lease
Sale & lease backOff balance
Ownership
RFI/RFQ/TENDER
Contract manufacturing
Transportation network
Logistics operations
Real estate
Material Handling Equipment
Staffing /IT
Management
User and building permits
Building
MarketstandardsRegulatory
Financial Government (User Permit)
Insurance (FM)
Business
Lay out adaptability
Location flexibility
Energyperformance
Building materials
Certification
Project /risk management
Building quality
General contracting
BREEAM
LEED
HACCP
ISOTAPA
LogisticsFunctional
Sustainability
Build
Use
Material Handling Equipment
Strategy
KPI´s
scenarioplanning
ROI
Distributionsstructure
# locationsFactories
Service levels
DC´s
Transport Modality
Site selection
Delivery model
Financing
In/Outsource
Projectmanagement
Program of requirements
Design/lay-out
Construct
Connectivity to (public) infrastructure providers
Timeline management/decision making/fit out works
DELIVER
YieldCost
European Operations
footprint
MAKE
The first 2 steps, Business Strategy and Footprint Design, are also the most dif-ficult in the whole process. The aim is to develop a supply chain strategy based on sales strategies and company guidelines which also takes risk management into account – lots of stakeholders and just as many opinions! Once the strategy is
defined, the footprint which lends shape to the network can be determined, requi-ring key decisions on the number and locations of facilities, modes of trans-port, and financing methods. Another important consideration is whether to handle certain activities in-house or to outsource them, and it is becoming
increasingly common for all aspects to be considered at this stage, from (con-tract) manufacturing to physical premi-ses and workforce.Since this is an intensive process which demands a clear, long-term vision, these 2 steps are thankfully not something that all companies have to complete
each year. However, it is important to re-evaluate the chosen network solution regularly to ensure it is still aligned with the current market situation.
In step 3, Develop, a company has to make a number of decisions which will commit it to certain financial obligations
(Capex and Opex!), partners and/or pro-perty for several years. It is important to clearly document the company’s needs/expectations in a Programme of Requi-rements which will form the basis of the implementation phase. At this stage, laws and regulations may rear their head, sometimes unfavourably. Hence,
effective and professional project management is crucial during this step.
In step 4, Manage, the company enters a phase of making continual improve-ments in terms of its processes, main-tenance activities, energy savings and customer expectations, all within the
existing framework of solutions. This step can last for several years, until the gap between the company’s present-day European footprint and its corpo-rate strategy becomes too wide. Which brings us back round to step 1.
Product and service portfolio
SC MSUPPLY CHAIN movemeNt
32 33
SUPPLY CH
AIN M
OVEM
ENT, N
o. 4, Q4
20
12
SUPPLY CH
AIN M
OVEM
ENT, N
o. 4, Q4
20
12