Production Footprint: Economic Success Requires Resilient Production Networks
The vulnerability of production and supply networks has come into particular focus in recent years, first with the pandemic and then with the war in Ukraine. Companies in industrial manufacturing in particular have experienced how costly the lack of resilience in their value creation processes can be. Even ignoring unforeseeable events, in the future the pressure on production and supply chains will continue to increase. Problems are caused, for example, by the increasing scarcity of raw materials and the ever greater volatility of the markets. Against this background, strategic planning of the production footprint is becoming a central task for businesses. Whereas the focus used to be on individual sites, we now look at the network from a holistic perspective. ConMoto has developed a structured approach for the integrated optimization of production networks. Based on the strategic goals of a company, a Production Footprint is designed for the company and implemented, with which economically successful value creation is possible even under difficult conditions.
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Defining strategic goals:
an often neglected task
The process of redesigning the Production footprint begins with defining the strategic direction of your business. This sounds like a given, but it is an important and complex task that is often neglected. The honest answer to the question of what a company’s strategic focus is has a major impact on the design of production and supply networks. Is innovation a core issue or cost leadership? Is production flexibility a success factor or is secure access to resources more decisive? How can differentiation from the competition be achieved? ConMoto considers and prioritizes these and other strategic aspects when setting goals with its customers.
Also part of the strategy definition is the quantification of the defined goals in Key Performance Indicators (KPIs). These serve as guardrails during detailing to ensure goals are met. During implementation, the KPIs can then be used to track the effectiveness of the concepts and activities. The indicators will be added step by step as the project progresses, if necessary.