In formulating your business strategy, you have identified your chosen market segments and value propositions. It is important to determine how you will deliver these propositions at the lowest possible costs.
A top-down approach is the only correct approach, in our opinion. By looking first at the total network, suppliers, production, logistics and distribution canals, it is easier to decide who should fulfil which roles. This involves evaluating not only the company’s current performance but also its capacities.
The choices you make for your network’s ‘blueprint’ have consequences for both manufacturing and supply chain roles. Moreover, your choices are very strategic in nature, so any modifications are likely to have a large financial impact. Making choices as objectively as possible is essential.