Supply Chain Mindmapping
Mindmap for European operations footprint
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 networks? Supply Chain Movement,
Goodman and Riverland have
produced a handy mindmap to
illustrate the route, including road
signs indicating potential hazards
along the way.
Product assortment
Service model
Manufacturing
Value add strategy
Customers
Suppliers
BUSINESS
STRATEGY
DELIVER
Company structure
CO2 footprint
Transportation network
Change management
European
Operations
footprint
Material Handling Equipment
SOURCE
Staffing /IT
MANAGEN
Building
Financial
Maintain value
Building Management
3
4
Marketstandards
Design/lay-out
Cost
Regulatory
Logistics
Adapt to changing requirements
Sustainability
Building materials
Project /risk management
Sustainability
Construct
Waste
Building quality
General contracting
Mindmap manual
defined, the footprint which lends shape
to the network can be determined, requiring key decisions on the number and
locations of facilities, modes of transport, 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 (contract) manufacturing to physical premises 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
Insurance (FM)
Business
HACCP
TAPA
ISO
Lay out adaptability
Energyperformance
Certification
Energy
Government (User Permit)
Location flexibility
Market
Heating
The first 2 steps, Business Strategy and
Footprint Design, are also the most difficult 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
Functional
Yield
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 property for several years. It is important to
clearly document the company’s needs/
expectations in a Programme of Requirements 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 improvements in terms of its processes, maintenance 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 presentday European footprint and its corporate strategy becomes too wide. Which
brings us back round to step 1.
BREEAM
LEED
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Material Handling Equipment
DEVELOP
Legal/Regulatory
Lighting
Use
Timeline management/decision making/fit out works
Manage life cycle cost
SUPPLY CHAIN
movement
Build
Connectivity to (public) infrastructure providers
Program of requirements
User/Customer
KPI´s
User and building
permits
Projectmanagement
Lay out optimization
SCM
Strategy
Management
MAKE
Proces improvement
Logistics operations
Real estate
Proces analysis
Improve performance
Sale & lease back
Contract manufacturing
KPI management
Market standards
Lease
Off balance
In/Outsource
Tax and legal rulings
Customs
Ownership
RFI/RFQ/TENDER
Corporate guidelines
Tax legislation
Turn key
On balance
PLAN
Financial model
incentives
Incentives
Risk management
Risk portfolio
Compliancy
Transport Modality
ROI
FOOTPRINT
DESIGN
Financing
Holding structure
SOX
Service levels
scenarioplanning
TCO
SLA’s
Company ethics
IFRS
The mindmap’s creators:
Supply chain strategy
2
DC´s
Site selection
Delivery model
Network design
1
footprint
Distributions
structure
Gravity
analysis
Sales strategy
Product and service portfolio
Revenu strategy
Sourcing
Factories
# locations
Consumer markets
33