global production

The network as a complexity driver gains in importance due to a proceeding globalization. The amount and location of sites are a key part of the network. A growing number of sites raises the complexity causing further coordination efforts, interfaces and opacity. Complexity has not been taken into account within location decisions yet. Thus this article analyses the connection between the amount of sites and complexity.

With new markets and decreasing transfer barriers producing companies are facing new possibilities for the optimization of their value chain regarding factor and sourcing cost as well as business opportunities in new markets. Global Footprint Design is therefore a highly relevant business issue which needs to address global cost advantages on one hand and exploitation of markets on the other. The paper presents a heuristics for footprint design which is oriented towards these opportunities.

Today, globalization is on the top of CEO’s agenda. Both, the unparalleled potential to grow into new markets as well as boosting the competitiveness of production are great opportunities making the globalization of production an imperative for successful companies. However, the risk and the complexity of that task require a dedicated approach to design, implement and manage the company’s network. Therefore, the article describes a basic project concept, major milestones and a promising scope of action for global production management.