Site searchRising energy costs and shorter delivery times mean that companies need 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 a company are affected by a site search or network planningproject. Most companies develop strategies for target markets and products. However, few companies efficiently or adequately allocate their respective site capacities. This is generally because operational strategies are not developed or implemented with the same scenario plan or rigor ascribed to the frequent seemingly interesting issues of markets and products.
Network planning with foresight
Alignment of business and operational strategies is often weak or non-existent. Mission and vision statements, plans, goals, and performance indicators are important for driving execution. However, they usually do not ensure that capabilities for scenarios are built from 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 sustained 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 executed as intended. They are beginning to understand that site selection 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 & Partner
The search for a location is difficult due to the dynamic market environment and the far-reaching time horizon. Therefore, it is all the more important to consider all relevant location factors when making a decision. Bross & Partner discuss the factors relevant to you, obtain reliable data and determine the optimal location through simulation. Please contact us.