Geographical Footprint Optimization
Organizations that expand their revenues through multiple acquisitions and organic growth often fail to optimize their geographical footprint as they do so. The result is often a portfolio of locations undertaking duplicative activities with underutilized facilities and unleveraged sourcing opportunities.
Synergetics’ Geographical Footprint Optimization approach can assist companies who are looking to reduce facility costs, mitigate competitive pressures, achieve efficiency targets, and leverage talent and labor concentrations. Synergetics has much experience in identifying and addressing these corporate inefficiencies and challenges. We will identify action opportunities to create a higher return and more efficient use of assets, helping an organization to capture a wide range of value improvement opportunities.
In its simplest terms, optimizing a corporate footprint refers to examining the quantity and geographic dispersion of an organization’s facilities, then adjusting their number and location to reduce duplication, inefficiency or overlap. By locating facilities more strategically to leverage labor or materials availability, enhance supply chain efficiencies, or streamline operations, organizations can achieve significant savings and competitive advantage.
Synergetics recognizes that effective footprint optimization requires strategic planning and tactical execution beyond that of traditional cost cutting measures. As our team looks across your company areas of supply chain/logistics, labor facilities/real estate, and taxes/incentives, we typically identify savings opportunities between 10-20%. To address these areas of savings takes more than just applying traditional cost reduction measures, as this approach can put your long term objectives at risk.
Our approach is three-fold where we begin by diagnosing problem areas through measured performance objectives and categorizing short/long term initiatives that are specific to facility locations, operations, and competitive environment. We then do a comprehensive comparative analysis of the initiatives and develop a prioritized road map with your business unit teams. At this point we help execute these plans for footprint sustainability while developing a continuous process to monitor performance as your team takes ownership. These actions taken together will help to create a higher return and more efficient use of assets, helping an organization to capture a wide range of value improvement opportunities.