operations flexibility in process industries - Roland Berger Strategy ...

3A consumer goods and a pharmaceutical producer use a four stepapproach to deal with fast growing local marketsInterview example: Chocolate industrySITUATION/CHALLENGEFast growing local markets…… that are relatively predictableDemandTimeScenariosSource: Roland Berger interviews, 2008SOLUTIONContractswith localdistributorsJointventuresAdditionalown salesorganizationAdditionalproductionplants• Supply of the customer in fast growing markets bydistributor• Distribution to the county is organized by chocolateproducer to secure fats delivery times• In several countries the chocolate producer has jointventures with local companies• If demand d in local l market is high h enough, own salesorganization id founded• Organization of whole distribution from the productionplant over the warehouse to the final customer by thechocolate producer• Build-up of additional production plants in the fastgrowing markets• Preferred option if business opportunity appears stableand needed quality standard can be achieved incountries• Often acquisitions are used for a fast increase of localproduction capacity33Airbusinterview