Describe how supply chains should be designed for multisite management situations

Multisite management is the process of managing geographically dispersed service-providing facilities. For firms that have a stable customer benefit package and many identical and standardized facilities, the supply chain should focus on standard processes. In these situations, an efficient supply chain design is most appropriate.

If a firm has at most a few sites and provides a broad customer benefit package with many goods and services, the firm cannot generally compete on low cost, but rather competes on variety and service. Thus, a responsive supply chain design is best. Supply chains are normally restricted to the local area and may involve a diverse supplier base.

A third situation is when both the customer benefit package and the number of facilities are changing simultaneously, supply chain design and management is more difficult. With nonstandard facilities and changing goods and service configurations, it is virtually impossible to design an efficient or responsive supply chain. Firms that knowingly or unknowingly pursue this strategy often find themselves at a competitive disadvantage.