Brochure: Supplier Footprint Optimization | Page 6

6 The location strategy provides strate by defining future target markets an RELEVANCE AND LEVER FRAGMENTED FOOTPRINT Expected increase in M&A activities and expansion in new markets lead to a more fragmented footprint, which is not aligned with the corporate strategy COST PRESSURE Intense cost pressure drives suppliers to develop new lowcost patterns in the production process and optimize the overall production setup Evaluation of OWN PRO- DUCTION AND DISTRI- BUTION NETWORK based on customer and market attractiveness Review own value chain to identify cost-saving potential, including those based on MAKE-OR-BUY DECISIONS LOCATION STRATEGY ANALYSIS WHICH MARKETS TO BE IN REVIEW PRODUCT PATTERNS OF CUSTOMERS Assess customer’s location patterns, volumes of sale per product, customer segment and their respective margins REVIEW MARKET SEGMENTS AND OPPORTUNITIES Identify growth opportunities within market segments (preferably for high margin markets) and gauge competitive landscape Know which products and services to offer in which regions CORPORATE STRATEGY FOOTPRINT STRATEGY HOW TO SER REVIEW PRODUC Identify value ch unique selling po parts that could Determine CAP build-up of pro sourcing produ Know which cover interna Source: goetzpartners; P3