Financial Feasibility of Localisation
REQUIRED:
- Identification and justification of your value proposition
- Business model canvass, niche focus. Who and why would a customer want to buy your product? Include a localised dimension and another relevant strategic feature in defining your value proposition.
- The design of a supply network which geographically or schematically maps suppliers, distributors, manufacturing and consumers. Each process stage needs to be sequentially ordered on the map (i.e. procurement, manufacturing, distribution cycles). We are Looking here for a map or supply chain of where you are going to get your raw materials from, where your production (or service supply) is going to take place and also how you are going to distribute your product (or service).
- An accompanying analysis is needed of why the network is designed this way it is. Provide some strategic details on how you have gone about designing your supply network this way (clue.. performance… lead time, cost, responsiveness, flexibility etc).
- The strategy you are using to plan and schedule production (or provide your service). How are you going to schedule your production? (i.e. “made to order”; “make to stock”). What size of batches are you going to operate with per week?
- You need to have a feasible production strategy aligned to the performance objectives driving your business. Evidence is needed to support your operations strategy. Break even is great but not compulsory but i would expect an idea of production volumes, price of your product equipment needed premises location. A template is presented. If you cant get costs don’t panic just do size of premises number of workers machines needed or printers storage facilities rough sizes….. focus on capacities needed if costs not clear.. looking for a plan to support your strategy.
- Identification of the key operational and financial challenges in expanding the capacity of your supply chain. Now an exciting part what are challenges in moving from small scale and a city market to a more regional and even global market. Do you have the capacity and the capability? What are the risks?
Next week’s session will explore Marks and Spencer and its changing relationships with its suppliers.
