Site search – objectives and strategy

Rising energy costs and shorter delivery times are forcing companies to rethink and adapt their procurement and distribution networks. As transportation costs rise, stress is felt in supply chain networks around the globe. To design an optimal logistics network, the network must be able to meet the company’s long-term strategic goals. Most business units or functional areas within an organization are affected by a location sourcing or network planning project. Most companies develop strategies for target markets and products. Few companies, however, efficiently or adequately allocate the capacity of their respective locations. This is generally because operational strategies are not developed or implemented with the same scenario plan or rigor that is given to the common seemingly interesting issues of markets and products.

Network planning with foresight

The alignment of business and operational strategies is often weak or non-existent. Mission and vision statements, plans, goals and performance indicators are important for guiding execution. However, they usually do not ensure that capabilities for scenarios are built from the business strategies. As a result, companies do not always have carefully developed alternatives for customer demand, new channels, competition, supply risks and product development. Clear and sustainable alignment between operational execution and plans derived from business strategies is a challenge. Executives understand the complexities involved but are concerned that 90% of business strategies are not being implemented as intended. They are beginning to understand that location is about more than just the logistics of buying and selling goods, it is about competitive differentiation and profitable business growth.

Software-supported site search with Bross Consulting

The search for a location is difficult due to the dynamic market environment and the far-reaching time horizon. This makes it all the more important to consider all relevant location factors when making a decision. Bross will discuss the factors relevant to you, obtain reliable data and determine the optimum location through simulation. Get in touch with us.