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

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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

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