Supply Chain Infrastructure Needs Periodic Review
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| Incremental changes to process technologies, distribution costs and product ranges will accumulate over time and render your infrastructure obsolete.
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| Five years ago, Site A proposed investing in a new line; the team did a thorough job justifying the business case, the numbers added up and the investment was made. Since then other sites made their own proposals for new lines, which led to further investment by the business.
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| | Periodically, you need to stand back and review the big picture - to assess the combined impact of these incremental changes on your supply chain. Are there line consolidation opportunities? Are the existing lines in the right place to service shifting demand patterns? Failure to address these issues will result in missed opportunities for reducing costs.
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| The fundamental role of the Supply Network is to service a given geographical market at least cost. Has your market size and/or location changed?
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| Technology is constantly improving and evolving. Do you know what benefits a 15% faster line could bring? Are you being drawn into returnable packaging? Are consumers demanding fresher products?
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| The EU is a constantly changing place to do business. Local and regional legislation and taxes could have massive implications for your business.
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| You can rest assured that your competitors are likely to be conducting strategic studies right now. Could your competitors out-manoeuvre you - or have they already?
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