Geopolitical Assessment of a Manufacturing Footprint
A large world-leading Swedish global company with manufacturing and warehousing on several continents carried out an extensive project to investigate how their manufacturing footprint should be designed to ensure future requirements. The goal was to guarantee that the company had a production apparatus that was dimensioned and designed to meet the market's needs from 2030. During the project the company realized they needed further support to identify and analyze future geopolitical shifts and reached out to Consilio.
Based on the company's existing strategy, Consilio assessed the operations from a geopolitical perspective to ensure that the future production and warehousing would be able to provide their global customers in a changed geopolitical situation.
The assessment included outlines for strategies on how to mitigate risks connected to future shifting power dynamics, geopolitical tensions, changing logistical patterns, as well as other issues of increasing importance, such as climate change, raw materials, critical flows and cybersecurity.
By analyzing the future market through both quantitative and qualitative methods, a broader decision base was created to identify and mitigate the geopolitical risks and, in that way, prevent an obsolete production apparatus.
Consilio’s contribution resulted in the following positive outcomes for the client;
- The company revised the existing plan for their manufacturing footprint as it did not include geopolitical risks.
- A more flexible production structure for meeting geopolitical changes was assured.
- The company received a tailor-made index with unique key indicators that show geopolitical changes which make them able to proactively adapt their production.
- An increased understanding of how geopolitics affects the company's strategic decisions.