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The structure and scope of supply, An operation should change its location…

- - - - The importance of a supply network perspective
      - Understanding competitiveness
        
        Identifying significant links in the network
        
        Not everyone in a supply network has the same degree of influence on the overall performance of the network; some contribute more than others. An analysis of networks needs to understand the downstream and the upstream operations that contribute most to end-customer service
        
        Immediate customers and immediate suppliers, quite understandably, are the main concern for companies. Yet sometimes they need to look beyond these immediate contacts to understand why customers and suppliers act as they do.
      - How should the network be configured?What physical capacity should each part of the network have? (The long-term capacity decision.)
  - - - The optimum capacity level
- - - - Network hubs versus direct connection
        
        Disintermediation
        
        Co-opetition
        
        Changing the shape of the supply network may involve reducing the number of suppliers to theoperation so as to develop closer relationships, and bypassing or disintermediation of operations within the network
        
        a logistics network the hub is usually a central warehouse that serves
        various other destinations such as smaller warehouses, retailers or customers. In passenger transportation a hub is a location, for example an airport, where passengers can transfer en route to their
        eventual destination.
      - An idea that is closely related to that of co-opetition in supply networks is that of the ‘business ecosystem’. Like supply networks, business ecosystems include suppliers and customers
      - The idea of triads is especially relevant in service supply networks. Operations are increasingly outsourcing the delivery of some aspects of their service to specialist providers, which deal directly with customers on behalf of the focal firm (more usually called the ‘buying operation’, or just ‘buyer’ in this context)
  - - - Changes in demand
        
        Changes in supply
        
        The other stimulus for relocation is changes in the cost, or availability, of the supply of inputs to the operation
        
        To meet higher demand, an operation could expand its existing site, or choose a larger site in another location, or keep its existing location and find a second location for an additional operation; the last two options will involve a location decision
      - Not all operations can logically justify their location. Some are where they are for historical reasons.
        Yet even the operations that are ‘there because they’re there’ are implicitly making a decision not to move
    - - Identify alternative location options
        
        Set location evaluation criteria
        
        Capital requirements, Market factors, Cost factors, Future flexibility, Risk factors