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FOOTPRINT

DESIGN
BUSINESS
STRATEGY
DEVELOP MANAGEN
Sales strategy
Consumer markets
Product assortment
Service model
footprint
Sourcing
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
CO
2
footprint
Revenu strategy
Supply chain strategy
Risk management
Corporate guidelines
Proces improvement
Proces analysis
Change management
KPI management
Lay out optimization
Manage life cycle cost
Market standards
Improve performance
User/Customer
Legal/Regulatory
Market
Energy
Lighting
Heating
Waste
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
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2
3
4
PLAN
SOURCE
Network design
Gravity
analysis
TCO
Incentives
On balance
Turn key
Lease
Sale & lease back
Off balance
Ownership
RFI/RFQ/TENDER
Contract manufacturing
Transportation network
Logistics operations
Real estate
Material Handling Equipment
Staffing /IT
Management
User and building
permits
Building
Marketstandards
Regulatory
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
ISO
TAPA
Logistics
Functional
Sustainability
Build
Use
Material Handling Equipment
Strategy
KPI´s
scenarioplanning
ROI
Distributions
structure
# locations
Factories
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
Yield
Cost
European
Operations
footprint
MAKE
The first 2 steps, Business Strategy and
Footprint Design, are also the most dif-
ficult in the whole process. The aimis 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-termvision, 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 formthe 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
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SUPPLY CHAIN
MOVEMENT
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