1、 2022 Boston Consulting Group1Future-Proofing Your Product Supply NetworkNOVEMBER 15,2022 By Wilderich Heising,Julian Englberger,Anita Zhang,Manoj Kothiyal,and Daniel KpperBuilding resilience and promoting sustainability while maintaining costefficiency,service levels,and growth requires redesigning

2、 your networkandthat will take several years.Better get started.Product supply networks have a critical role in helping producers fulfill their valueproposition,such as offering high-quality products at low cost or running fast andflexible operations.2022 Boston Consulting Group2For several decades,

3、the input parameters and economic assumptions underlyingnetwork design and optimization have generally been stable.Manufacturers havetypically scaled and located factories and warehouses to strike the right balancebetween cost efficiency,service levels,and growth.In recent years,however,the resilien

4、cy and sustainability of a companys productsupply network have become more important.This shi has undermined theassumptions that led many companies to design a global network withmanufacturing hubs in low-cost locations.Indeed,what was once an ideal networkcould be a competitive disadvantage today.T

5、o optimize their network for the new reality,manufacturers need to rethink itscaling and locating facilities in a way that builds resilience and promotessustainability without unduly sacrificing cost efficiency,service levels,and growth.Advanced analytics tools can help producers determine the best

6、network design.Implementing a new network design requires several years,so manufacturers facean urgent need to get started.The Objectives of Network DesignManufacturers have generally considered three main objectives when seeking tooptimize their product supply network.1 Cost Efficiency.End-to-end c

7、ost efficiency has long been the key optimizationcriterion for product supply networks.Manufacturers consider factor costs invarious locations,logistics costs along the entire value chain(from the raw-material sources through the value-adding steps to the final customer),thescale of plants and wareh

8、ouses,and costs for working capital.Service Levels.In pursuing cost efficiency,manufacturers should consider theneed to maintain appropriate service levels for customers,such as byproviding short,reliable lead times and the flexibility to change orders.2022 Boston Consulting Group3Given the shiing b

9、usiness,geopolitical,and social environments,producers needto rethink their network design and consider two additional objectives:Sometimes companies can address multiple objectives simultaneously.Forexample,shortening the distances required for transporting products reduces costsas well as CO2 emis

10、sions.However,oen,producers need to make tradeoffs.Forinstance,a company can improve cost efficiency by consolidating production at asingle large site,but strengthening resiliency can require having redundantoperations at multiple smaller sites.Growth.A network design can significantly contribute to

11、 unlocking growth fora company.For example,a design can provide sufficient capacity to expandproduction in response to new business opportunities or establish a regionalpresence that ensures access to a restricted market.Resilience.A resilient product supply network can continue to achieve itsobject

12、ives when challenged by uncertainty and disruptions.It allows amanufacturer to continue delivering products and maintain profitability in anunstable business environment.Sustainability.Sustainability is a broad topic that includes environmental andsocial considerations.Manufacturers need to make the

13、ir network moresustainable in order to reduce emissions,waste,and energy consumption,cutcosts(such as penalties for CO2 emissions),and meet demands fromconsumers for socially responsible production.In some cases,the most relevant design considerationsare determined by market characteristics.2022 Bos

14、ton Consulting Group4In some cases,the most relevant design considerations are determined by marketcharacteristics(for example,where consumers are located and what they requirewith respect to cost or speed).In other cases,design considerations result fromregional differences in factor costs,policies

15、,or regulations(such as taxes).Forexample,to address both labor costs and lead time,automotive suppliers of labor-intensive parts(such as cable harnesses)for Central European car manufacturersoen design a network that includes locations in Eastern Europe or North Africa.Labor in these regions is les

16、s expensive than in Central Europe,and the distance tocustomers factories is still short enough to allow for just-in-time shipping.Four Archetypes Reflect the Balancing of Scale andLocationTo manage the diversity of design objectives,manufacturers have generally focusedon the scale and location of s

17、ites for their plants and warehouses.Over time,balancing the tradeoffs of scale versus location has resulted in fournetwork design archetypes across production industries.(See Exhibit 1.)The scale of sites has ranged from consolidating operations in one large site(for example,to reduce costs through

18、 scale)to dispersing operations acrossmultiple smaller sites(for example,to enable growth by tailoring products forlocal markets).The location of sites has helped companies optimize manufacturing(forexample,operating sites where energy costs are low)or it has helped improvelogistics(for example,shor

19、tening the distances for transporting materials orproducts).A company needed to decide how it wanted to prioritizeoptimization for manufacturing versus optimization for logistics.2022 Boston Consulting Group5 Global manufacturing and distribution is mostly used in asset-heavyindustries with strong e

20、conomies of scale.In these sectors,production scaleand low factor costs are important cost-reduction levers,products can beshipped inexpensively relative to their value,and customer requirements allowfor longer lead times.Manufacturers with labor-intensive processes use thisarchetype,moving producti

21、on to so-called best-cost countries,such as those inSoutheast Asia,Latin America,or Eastern Europe.Pharmaceutical,electronics,and chemical companies use this network design.Local-for-local manufacturing and distribution is predominantly used bycompanies that produce goods that have complex shipping

22、requirements(suchas perishable foods)and goods for which there are few opportunities to reducefactor costs(such as bulk materials owing to their lower value density).Companies using this archetype generally need to transport goods to nearbylocations.Region-for-region manufacturing and distribution o

23、en results fromoptimizing the tradeoff between customer proximity and low manufacturingcosts.For example,manufacturers with energy-intensive processessuch as 2022 Boston Consulting Group6Given the new emphasis on resiliency and sustainability,companies need toreconsider the tradeoffs between scale a

24、nd location and the balance that they wantto achieve.Rebalancing may mean that a producer shis to a different archetypeand even gains a significant competitive edge.Resilience and Sustainability Have Gained Importanceas Design CriteriaThe relative stability of the business environment over the past

25、several decades hasmeant that manufacturers have not needed to reconsider which network archetypethey use.Tariffs and trade barriers were quite low in the generally peaceful andcooperative geopolitical environment in the decades aer the Cold War.Developing countries provided inexpensive labor and en

26、ergy and oen had lowerregulatory standards.This made them ideal locations for mass production andpromoted the use of global manufacturing and distribution hubs.Freight rateswere also low and stable,allowing companies to optimize supply chains based onother costs.In this environment,manufacturers cou

27、ld prioritize cost efficiency over resiliencein designing a network.Moreover,sustainability was typically not a majorconsideration;because customers and society overall did not emphasize thesetopics,the financial implications for not prioritizing them were oen relativelysmall.However,seismic shis in

28、 the business environment in recent years haveelevated the prominence of resilience and sustainability as criteria in networkdesign.steelmakers and building materials manufacturerstypically use thisarchetype,locating production in regions where logistical constraints areminimal and energy and electr

29、icity costs are low.Unconsolidated networks typically arise aer a period of high growth.Forexample,aer a series of mergers or acquisitions,a manufacturer may havenumerous smaller sites that it needs to consolidate.2022 Boston Consulting Group7The need for greater resilience is apparent.Geopolitical

30、instability and the COVID-19 pandemic have raised the costs of cross-border supply chains and interruptedthe flow of goods.Most notably,the war in Ukraine temporarily severed someautomotive supply chains between Eastern and Central Europe and hasdramatically increased prices for energy and natural g

31、as in Central Europe.Thehigher prices have created massive challenges for energy-intensive businesses.Theinstability has also affected other industriesfor example,the chemical industryrelies on natural gas as a feedstock for many products.The pandemic has snarledsupply chains(for example,due to port

32、 lockdowns or congestion)and pushedfreight rates dramatically higher.For many companies,a lack of resilience hasreduced margins and limited top-line growth.Consumers,governments,and other stakeholders are increasingly focused onclimate change and other aspects of sustainability.The ambitions establi

33、shed inthe Paris Agreement(reached at the United Nations 21st Conference of the Parties,or COP21)and the Glasgow Climate Pact(COP26),for example,have madereducing the environmental impact of product supply networks a priority for manymanufacturers.The increasing importance of resilience and sustaina

34、bility relative to costefficiency,service levels,and growth has the potential to dramatically alter theideal product supply network for specific industries.A network that provided acompetitive edge in the past may suddenly become a disadvantage.Forexample,consider aEuropean producer that useda South

35、east Asianmanufacturing hub to reduceunit costs through lowerfactor costs and greater scale.These benefits could now beoffset because the longshipping distances expose thecompany to a greater risk ofThe increasing importance ofresilience and sustainabilitycould dramatically alter theideal product su

36、pply network.2022 Boston Consulting Group8supply disruptions,while higher freight rates increase transportation costs.Inaddition,the European Unions carbon border tax will raise the costs of importedproducts starting in 2026.So,how do building resilience and promoting sustainability influence networ

37、kdesign and the path to an optimized network?BUILDING RESILIENCEA resilient product supply network is strong enough to withstand a variety ofdisruptions,thereby limiting the impact of each disruption on the full network.Itcan also quickly recover to full performance in all aspects of its value propo

38、sition,such as providing low costs or fast and reliable customer delivery.Networks experience many different types of disruptions.For example,laborshortages can impede manufacturing operations.Shipping delayswhetherinbound from suppliers,between manufacturing sites,or outbound to customerscan affect

39、 distribution operations.Significantly higher freight rates or labor costscan also lead to abrupt changes in the assumptions underlying the business casesfor products and service levels.As a first step to building resilience,companies need to comprehensively identifypotential disruptions and underst

40、and the implications for their manufacturing anddistribution network.Especially for a complex network,a company needs to usedigital twins or other advanced network optimization tools to fully understand theimplications of such disruptions.To build resilience,companies need to identifypotential disru

41、ptions and understand the implications.2022 Boston Consulting Group9With this fact base in hand,companies can systematically reduce their exposure tothe most significant disruption risks.Companies can take several risk-reductionactions along the source-make-deliver value chain,although some of these

42、 entailtradeoffs.(See Exhibit 2.)Examples of actions include the following:Qualifying New Suppliers.By bringing onboard new suppliers at the sourcestage,a company reduces risks through greater diversification.This action alsoenables a dual-sourcing strategy for key components or raw materials used i

43、nthe production process.However,the action entails the tradeoff of buying lessfrom each supplier,which may mean higher costs.Creating Redundancy.To prepare for more significant disruptions at themake stage,a company oen needs to build manufacturing redundancy byadding more plants and distribution fa

44、cilities.In some cases,however,acompany can avoid adding sites by qualifying certain production processes inmultiple existing facilities.Typically,increased manufacturing redundancycomes at the price of higher fixed costs,reduced benefits from scale,anddiminished economies from experience.Consequent

45、ly,the company shouldcarefully consider the tradeoff between redundancy and higher costs.Building Safety Stock.A company can build safety stock in certain locationsto create a time buffer at the deliver stage.This action can be sufficient whendisruptions span only a few days or weeks and do not stru

46、cturally impactproduction or distribution.Building safety stock affects the product supplynetworks value propositionsuch as by requiring more working capital orlonger lead times or causing higher scrap costs(for example,in case ofexpiries)but the harm is oen minimal.Reducing Logistics Risks.To hedge

47、 against logistics-related disruptions at thedeliver stage,companies can reduce their transportation volumes anddistances and avoid especially fragile transportation routes.This may requirerelocating plants or distribution centers closer to customers and cutting backon the transportation of work-in-

48、progress goods in the global value chain.Reducing the exposure to logistical risks typically increases manufacturing 2022 Boston Consulting Group10To find a reasonable tradeoff between increased resilience and higher costs,acompany needs to understand which actions to take to achieve the aspired lev

49、el ofresilience and how this affects the overall value proposition of the product supplynetwork.The best path from a cost-optimized to a resilience-optimized networkdepends largely on the networks characteristics,and,therefore,is oen specific toan industry or even a company.Pharmaceutical and batter

50、y cell manufacturersillustrate the differences at the industry level.Pharma Manufacturers.Pharma product supply networks have typicallyemphasized cost efficiency through a global footprint.This has been possiblebecause most products are inexpensive to ship relative to their value.Pharmacostsfor exam

51、ple,the company may lose the benefits of low factor costs.However,cost increases can oen be offset by the diminished logistical effortas well as shorter lead times that accelerate response to customer demand andrequire less working capital.2022 Boston Consulting Group11companies have used large-scal

52、e facilities,one of the most important levers for costoptimizationincreasing production volume by two to three times can reduceconversion costs by 30%to 50%.Recently,the resiliency of pharma product supply networks has gained importancenot only for manufacturers to achieve their growth ambitions but

53、 also for countriesaround the world to ensure product supply and,hence,access to medicine for theirpeople.During the COVID-19 pandemic,for example,some countries restricted theexport of critical pharma products.This shi made governments aware of theirsupply vulnerability,and they reviewed their sour

54、ces of supply.To adapt to the new reality,pharma companies must decide how resilient theywant and need to become and what level of cost efficiency they are willing tosacrifice to achieve their goals.Companies may want to discuss the costs andbenefits with their customers.For many companies,a region-

55、for-region networkwill be the right setup.Some manufacturers of products that are highly challengingto supply(owing to the need for refrigeration or special handling,for example)may need to adopt a local-for-local design for specific markets.Battery Cell Manufacturers.Today,most battery cell produce

56、rs use a region-for-region network.For example,a large South Korean manufacturer operates plantsin Asia,Europe,and North America.This approach is optimal because the impactsof scaling up or down are relevant only for individual production lines,each ofwhich represents a small amount of annual produc

57、tion capacity.In addition,shipping across long distances is expensive and presents safety challenges:batteriesare bulky and combustible,and they have a lower value relative to their weight andvolume than many products.The region-for-region design gives cell manufacturers a good level of resilience.H

58、owever,many of their customers are automotive companies that are becomingmore concerned about the resilience of their entire supply chain and are enforcingstrict lead time requirements.As a result,we expect to see cell manufacturers build 2022 Boston Consulting Group12more plants closer to their cus

59、tomers.These plants will enable a local-for-localdesign while still being large enough to be cost competitive.To optimize their product supply network,companies should use advanced-analytics to simulate operating costs and delivery performance across multiplescenarios.(See the sidebar“Simulating the

60、 Optimal Balance Between Best-CaseCosts and Resilience.”)Using BCGs SNOW AI tool,we analyzed a pharma companys distributionnetwork with regard to its operating costs and delivery performance(measured in average mileage to the customer).We considered threenetwork scenarios:one optimized for best-case

61、 costs,another optimized forresilience,and a third that balances these two objectives.For each scenario,we analyzed several disruption cases,includinginterruptions to distribution center operations and logistics.(See theexhibit.)SIMULATING THE OPTIMAL BALANCE BETWEEN BEST-CASECOSTS AND RESILIENCE 20

62、22 Boston Consulting Group13The bottom line:If disruptions occur,resilience-optimized networks pay offby providing lower costs and better performance.But in the absence ofdisruptions,resilience-optimized networks drive costs higher.So,if the risksof disruptions are relatively low,a cost-optimized ne

63、twork or a balanced The network optimized for best-case costs has the lowest costs in theabsence of disruptions.However,if disruptions occur,the costs anddelivery mileage increase significantlyby 16%and 80%,respectivelyversus the best-case costs.The network optimized for resilience has best-case cos

64、ts that are 6%higher than those of the network optimized for these costs.But thenetwork is able to contain the impact of disruptions:costs increase byless than 10%and delivery mileage increases by 42%.The balanced network has best-case costs that are only 3%higher thanthose of the network optimized

65、for best-case costs.If disruptions occur,costs increase by up to 10%and delivery mileage increases by 56%.2022 Boston Consulting Group14network is a better choice.This makes a rigorous risk assessment essentialfor identifying the optimal product supply network.PROMOTING SUSTAINABILITYWithin the broa

66、d topic of creating sustainable operations,we focus on CO2emissions because of their significant implications for product supply networks.(See the sidebar“The Three Scopes of Emissions.”)The Greenhouse Gas Protocol categorizes CO2 emissions into three groups,or scopes:Scope 1,2,and 3 emissions as a

67、share of total emissions vary by industry,depending on their location in the value chain that runs from raw materialsto end products.Typically,manufacturers of end products have high sharesof scope 3 upstream emissions owing to their dependence on raw materialsTHE THREE SCOPES OF EMISSIONS Scope 1 e

68、missions are direct from operations owned or controlled by acompany.For example,these emissions are from combustion inboilers,furnaces,or vehicles or from chemical production in processequipment.Scope 2 emissions are indirect from the generation of purchasedenergy consumed by the companysuch as elec

69、tricity,steam,heating,or cooling.Scope 3 emissions are all indirect emissions that occur in thecompanys value chain(upstream and downstream).For example,these emissions are from the production of purchased products(such asraw materials or components of the companys end products),thetransportation of

70、 purchased products,the use of sold products,the end-of-life treatment of sold products,and waste treatment.2022 Boston Consulting Group15and unfinished products.(See the exhibit.)Providers of raw materials andunfinished products,such as cement,steel,or agricultural products,havehigher scope 1 emiss

71、ions from their direct operationsfor example,steelmakers have high direct emissions from transforming iron ore intosteel coils.There are two main drivers of a networks emissions:Energy Consumption and Mix.To optimize the amount of energy consumedand the mix of energy sources used in operations,manuf

72、acturers need toconsider network design with respect to the scale of their equipment,thelocation of the site,and the technology they are using.Large-scale equipmentis typically more energy-efficient than smaller-scale equipment.The sitelocation determines the energy sources that are available,and th

73、e localtemperatures and humidity conditions affect the amount of energy required.Equipment that uses newer technology and is better maintained is typicallymore energy efficient.2022 Boston Consulting Group16Until recently,a manufacturers CO2 footprint did not directly affect the economicsof its busi

74、ness,and customers did not focus strongly on sustainability.In fact,lessstringent environmental regulations and standards in some countries and regionscontributed to lower production costs.For example,manufacturers could avoidcostly treatment of exhaust gases or wastewater,or they could emit unlimit

75、edamounts of CO2 without additional costs.In locations with low-cost energy sources,many manufacturers have benefited from using older,less energy-efficientequipment that has been fully depreciatedeven if more energy-efficienttechnologies are available.However,the publics increasing consciousness of

76、 climate and sustainability topicshas led to stronger regulations in many markets,which means that CO2 emissionsmay have a direct financial impact on businesses.For example,if CO2 emissions arepenalized,such as through a carbon border tax,using energy-efficient equipmentwill become more attractive.I

77、n some cases,the need to invest in new equipmentmight lead companies to reconsider the financial viability of plant and warehouselocations.Even without investments in new equipment,penalties may reduce oreliminate a locations cost advantage.Consequently,companies need to explicitlyconsider emissions

78、 costs,including carbon border taxes and other penalties,asthey rethink their product supply network.The impact may significantly affect thenetworks setup.(See the sidebar“Assessing the Implications of the EUs CarbonBorder Tax.”)Freight Volumes and Transportation Modes.Optimizing CO2 emissionsfrom t

79、ransport requires first considering the tradeoffs between freight volumesand transportation modes.Then,a company should assess the effects of thosetradeoffs on other network design objectives.For example,changing the modefrom air to sea may reduce emissions but increase lead times,and thus hurtservi

80、ce levels.ASSESSING THE IMPLICATIONS OF THE EUS CARBONBORDER TAX 2022 Boston Consulting Group17Currently,the European Union uses a cap-and-trade scheme for CO2emissions rights.Emissions are capped for each company.If a companywants or needs to emit more CO2,it can trade for emissions rights withothe

81、r companies that emit less than the capped amount.Because thisscheme is in effect only within the EU,it harms the global competitivenessof EU manufacturers.To promote their competitiveness,manufacturerscurrently get significant allowances(essentially,free emissions rights).The EU wants to phase out

82、allowances over the next ten years.To avoidharming competitiveness,it plans to introduce a carbon border tax in 2026.The tax will be levied on importers and based on the scope 1 CO2 footprintof covered goods.As a first step toward implementation,importers willneed to report the CO2 footprint of thei

83、r imported goods starting onJanuary 1,2023.The steel industry will be strongly affected by the CO2 emissions tradingscheme and the carbon border tax.The EU currently producesapproximately 90 million tons of flat steel per year using the blast furnace-basic oxygen furnace(BF-BOF)process.Of this amoun

84、t,approximately 15million tons are exported.In addition,the EU imports 20 million to 25million tons from countries outside the region(for example,from India orTurkey).Under the emissions trading scheme(and assuming that CO2 prices remainat 90 per ton),the cost of CO2 emissions certificates for hot-r

85、olled-coilsteel produced in Europe via the BF-BOF process would be approximately50 per ton in 2027 and approximately 160 per ton in 2032.This meansthat certificates would cost between 5%and 20%of the current price of oneton of hot-rolled-coil steel.Because steel is included in the carbon border tax,

86、steel imports into theEU will be subject to similar CO2 regulations and costs as EU-producedsteel.In some of the major countries exporting to the EU,such as India,2022 Boston Consulting Group18the CO2 emissions intensity of producing steel is higher than in the EU.Asa result,we expect the carbon bor

87、der tax on BF-BOF steel that is importedfrom India to be approximately 100 per ton in 2027 and approximately200 per ton in 2032.Steel produced in Europe and then exported will likely face a significantcost disadvantage versus steel produced outside Europe,owing to CO2emissions costsas long as no sim

88、ilar mechanisms are in enacted in theregion receiving the steel exports.Considering the financial impacts of emissions trading and the carbonborder tax,producing steel in the EU for sale within the region will becomemore attractive economically when the carbon border tax takes effect.Steelimports wi

89、ll lose some of the favorable economics they enjoy today,andexports will have a cost disadvantage on the global market.Beyond pure economics,rethinking a product supply network for steelmust also consider resilience and sustainability,among other objectives,aswell as complexities such as different s

90、teel grades and qualities.Given thediversity of considerations,there is no universally applicable networkdesign archetype.To undertake a redesign,each company needs to conducta thorough analysis that considers all the specifics and value propositions ofits product supply network.In many cases,addres

91、sing the financial impact requires giving greater emphasis tooptimizing logistics costs and scope 3 emissions when balancing the tradeoffsamong manufacturing locations.For some industries,the economics become morefavorable for locating sites in regions with higher labor costs that are also closer to

92、customers.The shorter distances reduce freight costs and emissions,while thelower emissions penalties offset the disadvantages of labor and production costs.For other industries,locations that are close to the source of raw materials may bemore attractive.The shipping volume or weight of mining prod

93、ucts,for example,2022 Boston Consulting Group19can be considerable,yet the value is low.A network design that allows for lowershipping costs can be advantageous.Getting Networks Ready for the FutureTo give greater emphasis to resilience and sustainability,many manufacturers willneed to transition fr

94、om a global product supply network to a region-for-regiondesign that makes it possible to have shorter lead times and transport productsover shorter distances.This transition will change the competitive environment inmarkets by allowing companies to accelerate deliveries of customers orders.Ifcustom

95、ers start to expect faster deliveries,all companies will need to shorten leadtimes to remain competitive.Shorter lead times will also allow for increasedflexibility in meeting customers individual specifications.The ability to make last-minute changes to a products configuration will become the stan

96、dard.Someplayers will use these changes to aggressively improve their market position oreven to enter new markets.Because manufacturers need several years to implement changes that reflect thenew tradeoffs,incumbents with a legacy network must act quickly to avoid beingat a competitive disadvantage.

97、Redesigning the target picture of a product supplynetwork entails four phases:Develop a vision for the product supply network and set strategicguardrails.Start the journey with the customer in mind and understand thecustomers needs,demand scenarios,and business requirements.Define high-level busines

98、s requirements(such as service levels and emission-reductiontargets)in light of future demand,and derive guiding principles for thenetwork design.Establish the baseline and identify gaps.Assess the current state of theproduct supply network and create transparency on the key performanceindicators.Cl

99、early define how the network currently contributes to achievingeach of the five design objectives:cost efficiency,service levels,growth,2022 Boston Consulting Group20The business environment for product supply networks has changed significantlyin recent years.Although cost efficiency,service levels,

100、and growth remain criticalconsiderations,resilience and sustainability have gained importance,and thistrend will likely continue.The long lead times required to rebalance prioritiesmean that companies must start now to systematically redesign their productsupply network.Given their networks importan

101、t role in promotingcompetitiveness,manufacturers cannot afford to delay the effort to make it future-proof.The authors thank their colleagues Dharanidhar Nalabolu and Nicole Voigt,as well astheir former colleague Michael Jobst,for their contributions to this article.resilience,and sustainability.Ide

102、ntify the gaps between what the currentnetwork achieves and the needs of the business.Define the target state.Considering the baseline and the identified gaps,derive the options for the network.Assess and prioritize these options and,ultimately,define the North Star,or target state,for the network.D

103、ependingon the starting position,the effort to reach the North Star can range from fine-tuning the existing network to designing a fundamentally new one.If afundamental redesign is needed,it is advisable to use an advanced analyticstool,such as BCGs SNOW AI solution,to support the effort.Develop a r

104、oadmap.Define an actionable plan and kick-start theimplementation activities to reach the North Star.This requires disaggregatingthe effort into projects that create business value without overburdening theorganization.2022 Boston Consulting Group21AuthorsWilderich HeisingPartner&Associate DirectorF

105、rankfurtJulian EnglbergerProject LeaderMunichAnita ZhangGamma Senior Data ScientistNew YorkManoj KothiyalPartnerBostonDaniel KpperManaging Director&Senior PartnerCologneABOUT BOSTON CONSULTING GROUPBoston Consulting Group partners with leaders in business and society to tackle theirmost important ch

106、allenges and capture their greatest opportunities.BCG was thepioneer in business strategy when it was founded in 1963.Today,we work closely with1In designing a product supply network,companies need to consider their footprint(where plants and distribution centers are located)and their assets(the ass

107、ets inplants and warehouses and how they are used).In this article,we focus on thefootprint.2022 Boston Consulting Group22clients to embrace a transformational approach aimed at benefiting all stakeholdersempowering organizations to grow,build sustainable competitive advantage,and drivepositive soci

108、etal impact.Our diverse,global teams bring deep industry and functional expertise and a range ofperspectives that question the status quo and spark change.BCG delivers solutionsthrough leading-edge management consulting,technology and design,and corporateand digital ventures.We work in a uniquely co

109、llaborative model across the firm andthroughout all levels of the client organization,fueled by the goal of helping our clientsthrive and enabling them to make the world a better place.Boston Consulting Group 2022.All rights reserved.For information or permission to reprint,please contact BCG at .To find the latest BCG content and register to receive e-alerts on this topic or others,please visit .Follow Boston Consulting Group on Facebook and Twitter.2022 Boston Consulting Group23 2022 Boston Consulting Group24