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  • Supply Chain Analysis and Mapping

    Supply chain analysis is an important tool to determine the composition of clusters in a region. A thorough supply chain analysis and mapping exercise will show the niche industries and companies within the cluster that are present in the region. Or, more importantly, the niches and companies that are absent in the regional supply chain. We refer to these as “gaps” in the supply chain. These gaps represent companies that currently do not have a presence in a region, but that are important facets of a fully formed cluster.

    Identification of these gaps provides local economic developers with near term targets for recruitment or local development. The supply chain map gives lays out the justification for future targeting efforts and assists in developing a sales pitch in an effective manner. This analysis guides:

    • Identification of near-term targets and refinement of target lists to reveal narrowly defined industries and companies.
    • Creation of messaging that will resonate with the target audience – a description of the local supply chain assets will show external companies where they fit and the benefits they would incur from relocation.
    • More robust interactions with local companies in the supply chain – local business leaders can see where their company fits within the cluster and can assist with recruitment for both their company’s and the community’s benefit.

    Greyhill’s supply chain analysis follows the following process:

    1. 1.  Definition of the cluster and the industry codes that comprise various supply chains
    2. 2.  Data collection and definition of the supply chain using 4- and 6-digit NAICS codes from the Bureau of Labor Statistics (BLS)
    3. 3.  Discrete analysis of the data collected to determine concentrations in the regional supply chain along a range of variables: Employment, Output, Inflow-Outflow purchases, etc.
    4. 4.  Comparison of the regional supply chain presence to the required supply chain for the industry to determine areas of regional strength and “gaps” in the supply chain.
    5. 5.  Geographical comparisons of the region’s supply chain with competitor regions to provide local leaders with a benchmark.
    6. 6.  Physical mapping of the supply chain to demonstrate regional presence.

     

    An example of a supply chain analysis for the Wind Turbine Industry is presented below.

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