Monday, November 3, 2008

Setting Manufacturing Footprint Strategy is Continuous

Why lean and offshoring are not enough is the first topic Paul Christodoulou of Cambridge University's Institute for Manufacturing is addressing. Problem is: manufacturing networks are inherited, not designed - M&A and other issues have created them. Can save 30-45% of landed cost by optimizing the manufacturing footprint - can also access growing markets. However, it's not easy to do - moving manufacturing often does not work (skills, supply chain, risk to IP and macroeconomics). What leaders are doing shows variety: some outsource production, some focus there - with or without offshoring. So single approach to footprint strategy from Cambridge from plant thinking to network thinking - simple 4 questions: Why, what, where and how. Working for companies in many industries. Need to check out the Sealed Air example on the web.

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