Report | Perspectives on location strategy - consolidating manufacturing operations
A rationalization can have a profound impact on the organization from an asset efficiency (improved efficiency of property, plant, equipment, inventory, finished goods, work-in-progress and raw material usage) and operating margin (improved efficiency of production, materials, labor, logistics, utilities, etc.) perspective. As such, the initiatives are worth the effort and time required to examine options; however, manufacturing consolidation initiatives are complex and require a disciplined and rigorous analytical approach to ensure the correct output is derived. The reason for the analytical complexity can be directly attributed to the number of financial considerations that require simultaneous review and the need for input from a range of subject matter experts.
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