Manufacturing & Distribution Network optimization.
by Albert Stuurman
Is my Manufacturing & Distribution network still adequate in the ‘after Corona’ era?
Can we face the threat? And strategically, can we exploit the opportunities?
Will some slight adaptations and focus on Operational Excellence be enough?
Or is this the moment to initiate more fundamental changes in the network?
Many leaders of companies, thinking about the ‘after Corona’, are already asking themselves this kind of questions. When income doesn’t meet forecasts, the immediate reflex is (and needs to be) managing cost. Often this happens through focus on short term operational excellence and more procurement initiatives. But for many companies it should be the moment to consider more fundamental changes.
Here a number of more detailed questions that are worthwhile asking right now:
- How will my product portfolio change from ‘before’ to ‘after Corona’?
- Do I need new capabilities for new products or packaging?
- How will distribution change and the sales volumes in the channels?
- Do I have the capacities to meet the changed volume demands?
- Will I invest in new capabilities for make or can / will I buy more in the market?
- Are all the types of current indirect costs still all worthwhile spending? What costs can I take out by reorganizing?
- Can I influence my direct costs by investing in new technology?
- Is there an opportunity to integrate also the changing environmental demands and making steps towards a circular economy?
Developing the answers to these kinds of questions, will result in a number of scenario’s on how to move the business forward, into ‘after Corona’.
Deciding on the best scenario requires proper modelling, especially costs modelling and robustness testing*.
Once a scenario is selected for execution, Masterplans for Manufacturing operations and Distribution network have to be developed. These plans then need to be converted into real projects with a plan and a budget.
All this requires specific expertise and experience that not all companies have at hand.
* Robustness testing requires input from all disciplines to see if the selected scenario can stand the next challenges….
Dobilo, with its spectrum of experts encompassing Finance, Marketing & Sales, OpEx, Distribution and Manufacturing & Technology, is well placed to support you in this holistic process of developing ‘after Corona’ opportunities and robustness.