Manufacturing Footprint Optimization

The current downturn has many organizations pursuing revenue growth or cost reduction goals. While both are worthy objectives, many companies would receive equal or greater benefit by altering their operational footprint. Manufacturing footprint optimization and on a more global scale, enterprise footprint optimization deals with how the “pieces” of an organization should fit together. This process-oriented approach prompts organizations to adopt a more strategic and holistic approach to optimization as it relates to how and where their assets are deployed. In spite of that, many companies continue to rely on a traditional, narrowly focused approach favoring swift action over thorough consideration. Bringing footprint issues to the forefront allows for sharp relief covering a variety of business cost related issues.

Optimizing a company's footprint improves operating flexibility and positions the organization for future growth. The optimization process balances a wide range of critical factors including improved operating requirements, increased cost efficiency and access to new markets. A narrow focus on only cost reduction does not allow a company to capture the broad range of value improvement opportunities.

Footprint optimization, whether completed on a manufacturing or global scale, is relevant throughout every industry and at any point during economic and business cycles. Organizations need to regularly optimize their footprint to ensure their long-term competitiveness.