1、 2022 Boston Consulting Group1Future-Proofing Your Product Supply NetworkNOVEMBER 15,2022 By Wilderich Heising,Julian Englberger,Anita Zhang,Manoj Kothiyal,and Daniel KpperBuilding resilience and promoting sustainability while maintaining costefficiency,service levels,and growth requires redesigning

2、 your networkandthat will take several years.Better get started.Product supply networks have a critical role in helping producers fulfill their valueproposition,such as offering high-quality products at low cost or running fast andflexible operations.2022 Boston Consulting Group2For several decades,

3、the input parameters and economic assumptions underlyingnetwork design and optimization have generally been stable.Manufacturers havetypically scaled and located factories and warehouses to strike the right balancebetween cost efficiency,service levels,and growth.In recent years,however,the resilien

4、cy and sustainability of a companys productsupply network have become more important.This shi has undermined theassumptions that led many companies to design a global network withmanufacturing hubs in low-cost locations.Indeed,what was once an ideal networkcould be a competitive disadvantage today.T

5、o optimize their network for the new reality,manufacturers need to rethink itscaling and locating facilities in a way that builds resilience and promotessustainability without unduly sacrificing cost efficiency,service levels,and growth.Advanced analytics tools can help producers determine the best

6、network design.Implementing a new network design requires several years,so manufacturers facean urgent need to get started.The Objectives of Network DesignManufacturers have generally considered three main objectives when seeking tooptimize their product supply network.1 Cost Efficiency.End-to-end c