In today’s era of increasing consumer expectations and rapidly changing business environment, companies need to re-evaluate their supply chain and distribution networks consistently. A decade ago, it was sufficient to re-evaluate the supply chain every three to five years. However, today, it is necessary to assess the supply chain and distribution networks every six or twelve months in a constantly evolving business environment. Reasons to re-evaluate the supply chain network include changing business strategies, reducing costs, or enhancing customer service levels.
Supply chain and distribution network design can significantly reduce supply chain costs and improve service levels. The overall goal is to streamline total supply chain costs and to maintain or improve customer service levels, order lead-time, on-time delivery, and case fill. The supply chain and distribution network performance is analyzed along two dimensions: customer service level and cost of fulfilling customer needs.
A well-designed supply chain and distribution network optimizes elements along the supply chain to facilitate efficient flow of materials through the network. It covers sourcing locations, manufacturing and warehouse/distribution centers and the general flow of physical goods. A distribution network design covers the footprint and flow of finished goods from manufacturers or suppliers to customers.
Our approach to create an optimal network design includes:
Collecting data and designing a company-specific database
Mapping the current supply and distribution network
Assessing and evaluating the network
Modeling the status quo
Developing alternatives and operating methods
Cost simulation using alternative model
Designing optimized network
The goal of an optimized network is to enhance flexibility, efficiency and respond to dynamic business scenarios. Our network optimization strategies are designed to enhance the resilience of supply chains against current changes and future uncertainties in today’s volatile business environment.