When designing a global network, an organisation typically identifies specific strategic roles for each facility. Within the larger network, these roles aid in defining the goal and function of the network. The key strategic roles often considered include;
- A lead factory develops new processes, products, and technologies. It often serves as a centre of excellence for the organisation, which may be responsible for transferring knowledge to other facilities.
- A source factory produces key components or products for the entire network and often specialises in specific product lines or technologies that may benefit from economies of scale or access to unique resources.
- A server factory serves specific regional markets that can adapt products to local tastes and requirements and focus on product final assembly or customisation.
- A contributor factory specialises in certain products or processes to serve global markets, not just a regional one and often has unique capabilities that complement other facilities.
- An outpost Factory would be located in areas with advanced technology or sophisticated competitors that gather information on technological advancements and market trends, which may serve as a listening post for the organisation.
- An offshore factory would use low-cost labour or resources and focus on labour-intensive processes or components produced for export rather than local markets.
- Flexible Manufacturing is designed to adapt to changing market demands quickly and could produce various products or use various processes by often employing advanced manufacturing technologies.
- A hub serves as a central point for distribution or coordination, consolidating shipments or managing information flow, which often plays a key role in the logistics network.
When assigning these roles, organisations consider factors such as:
- Proximity to markets or resources
- Local skills and capabilities
- Cost structures
- Regulatory environment
- Strategic importance of the location
By clearly defining these roles, organisations can optimise their global network, ensuring each facility contributes effectively to the overall supply chain strategy.