Supply Chain Mindmapping

Mindmap for European operations footprint

Factories
# locations
The days when a company could Consumer markets
Distributions DCs
(successfully) serve the European Product assortment Gravity structure Site selection
market from a central distribution Product and service portfolio Sales strategy analysis
Service model Service levels
centre are a thing of the past. The Delivery model
market has become too big for that, Revenu strategy Network design
Transport Modality
especially in view of the current
growth and expansion in Eastern
Sourcing
footprint
1 2 TCO
scenarioplanning

Europe. It is time to review the Manufacturing

Supply chain strategy BUSINESS ROI
situation. Should companies set up Value add strategy FOOTPRINT
STRATEGY Incentives
satellite DCs? Establish new net- Customers DESIGN Turn key
On balance
works? Supply Chain Movement, SLAs
Suppliers Financing Ownership Lease
Goodman and Riverland have Off balance
produced a handy mindmap to Company ethics Sale & lease back
Risk management
illustrate the route, including road
signs indicating potential hazards
Holding structure
Risk portfolio PLAN Contract manufacturing
Transportation network
along the way.
SOX Financial model RFI/RFQ/TENDER
Logistics operations
Compliancy In/Outsource
IFRS
Real estate
incentives
Tax and legal rulings
Corporate guidelines
European Material Handling Equipment

The mindmaps creators:

Tax legislation
DELIVER Operations SOURCE Staffing /IT
Company structure
Customs CO2 footprint footprint Strategy
Management
KPIs
Build
KPI management
User and building
Proces analysis Use
Projectmanagement permits
Change management Proces improvement
MAKE Connectivity to (public) infrastructure providers

Timeline management/decision making/fit out works

Lay out optimization
Program of requirements Building

Material Handling Equipment

MANAGEN DEVELOP
Manage life cycle cost Yield
Financial Government (User Permit)
Cost
Marketstandards Insurance (FM) HACCP
Market standards
Maintain value 4 3 Regulatory
Business TAPA
ISO

SCM
Improve performance Building Management Design/lay-out
Functional
Logistics Lay out adaptability
User/Customer
Adapt to changing requirements Location flexibility
SUPPLY CHAIN Legal/Regulatory Energyperformance
movement Sustainability
Market Building materials
BREEAM

S U P P LY C H A I N M O V E M E N T, N o . 4 , Q 4 2 0 1 2
Certification
S U P P LY C H A I N M O V E M E N T, N o . 4 , Q 4 2 0 1 2

Lighting LEED
Energy Project /risk management
Heating Sustainability
Construct
Waste Building quality

Mindmap manual
The first 2 steps, Business Strategy and
Footprint Design, are also the most dif-
32 ficult in the whole process. The aim is to
develop a supply chain strategy based on
sales strategies and company guidelines
which also takes risk management into
account lots of stakeholders and just
as many opinions! Once the strategy is
defined, the footprint which lends shape
to the network can be determined, requi-
ring key decisions on the number and
locations of facilities, modes of trans-
port, and financing methods. Another
important consideration is whether to
handle certain activities in-house or
to outsource them, and it is becoming
increasingly common for all aspects to
be considered at this stage, from (con-
tract) manufacturing to physical premi-
ses and workforce.
Since this is an intensive process which
demands a clear, long-term vision, these
2 steps are thankfully not something
that all companies have to complete
each year. However, it is important to
re-evaluate the chosen network solution
regularly to ensure it is still aligned with
the current market situation.
In step 3, Develop, a company has to
make a number of decisions which will
commit it to certain financial obligations
(Capex and Opex!), partners and/or pro-
perty for several years. It is important to
clearly document the companys needs/
expectations in a Programme of Requi-
rements which will form the basis of the
implementation phase. At this stage,
laws and regulations may rear their
head, sometimes unfavourably. Hence,
General contracting
effective and professional project existing framework of solutions. This
management is crucial during this step. step can last for several years, until the
gap between the companys present- 33
In step 4, Manage, the company enters day European footprint and its corpo-
a phase of making continual improve- rate strategy becomes too wide. Which
ments in terms of its processes, main- brings us back round to step 1.
tenance activities, energy savings and
customer expectations, all within the