Touro University International
Case Assignment #3: Location, Customers, and Planning
Globalization has brought an unprecedented level of economic connectivity. This connectivity, or the ability to connect the most effective location for resources, manufacturing, and markets, has created an insatiable appetite for competition and cost. These locations can exist on three continents, in multiple countries, or regions, so the ability to move physically, logically, and electronically between each node is more important than ever and directly linked to the same drive for competition and cost. The recipient at each node is a customer. Manufacturers are customers of raw materials or sub-components; retailers are customers of manufacturers or suppliers; and consumers are customers of retailers. Customers, regardless of the type, drive location of products and services because they make purchase decisions based on price, quality, and access. Location impacts all three criteria in some way, so suppliers must consider this factor during planning in order to provide and balance a competitive cost, a quality product or service, and access to this product or service whenever and wherever the customer wants it. The distance between product or service and the customer affects price because of transportation requirements. When a particular quality in raw materials, sub-assemblies, or service workforce is required, the location of this source must be considered and planned in relation to manufacturing sites and markets. Lastly the customer must have adequate access to the product or service to meet demand and maintain customer satisfaction.
Customers Driving Location
The case study article written by Les Cranmer states that location as criteria in logistics planning has increased significantly over the years. The main driving force for change is the customer at all levels, to include the consumer, manufacturer, and...