The traditional industrial paradigm based on large, fixed, and centralized processing facilities is being replaced by the rise of mobile and modular facilities. While the traditional facilities have not become completely obsolete, the paradigm is indeed shifting. This is according to scholarly research, which has identified the future direction of processing facilities. According to the research, the future direction of processing facilities is not one of replacing traditional facilities but of strategically integrating high flexibility units.
The main drawback of traditional facilities is their strategic inflexibility. The location of traditional facilities is generally not changed, as any change would require significant costs. However, the introduction of mobile facilities has provided the supply chain with the flexibility of location. The facilities can now be moved according to the location of the customers. This has provided the firm with the opportunity to reduce the distances of transporting the products. The facilities can also be moved closer to the customers.
This is possible because of the technological advancements made in miniaturization. According to the systematic review published in 2022, the introduction of the modular manufacturing unit is an extremely versatile device. The device can be easily disassembled and relocated. This has changed the location of the facilities from being strategically determined to being tactically or operationally determined. The pharmaceutical and FMCG industries have adopted the use of the facilities. The facilities are designed in such a manner that they can be placed inside the container.
Nevertheless, it would be premature to write off the fixed plant as obsolete. The classic trade-off between mobility and stability remains a core consideration. When a facility is in transit, it does not add value, and there are also costs incurred for the purpose of reassembling the facility. Hence, the optimal approach would frequently be a hybrid model. From a theoretical point of view, this has been captured as the facility location problem with the addition of a new dimension, which captures the facility’s flexibility, with the optimal decision no longer being the traditional “fixed vs. mobile,” but rather the optimal timing and sequencing for the mobilization and relocation of the modular facility to augment the stable base of fixed infrastructure.
To conclude, the traditional model based on fixed processing plants has been, and continues to be, increasingly supplemented by a new paradigm. Mobile and modular processing units do not replace the fixed plant; rather, they provide a new dimension for the strategic decision-making process for the purpose of supply chain optimization. Competitive advantage in the new industry would be achieved by the organization that can successfully leverage the benefits of economies of scale with the benefits of the mobile plant.
