Strategic Alignment of Global Production Networks: Developing an Approach for Product Reallocation and Plant Development
Year: 2026
Type: article
Abstract: Advancing globalization has led to the development of global production networks. Many of these networks have grown over time through opportunistic decisions, and therefore, were not strategically planned or aligned with the company’s network strategy. The outcomes are footprints that are suboptimal in terms of efficiency, and adaptability, with unutilized synergies. In this work, an approach is proposed for product-to-plant reallocation and plant development to align global production networks with corporate goals and the company’s network strategy. To operationalize the approach, a four-stage model is developed that includes plant analyses to achieve network transparency, the development and evaluation of scenarios, as well as the derivation of a target state for the network. A systematic basis for supporting strategic decisions in network planning is created, aiming for a long-term increase in competitiveness of the global production network. For the practical application of the approach, tools are developed that enable a structured evaluation and prioritization of options for action. The approach is validated in an industry case and shows how companies can systematically and strategically reorganize their global production networks.
Source: Procedia CIRP
Institution: Karlsruhe Institute of Technology
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7207608305