Supply Chain Network Design
Managing how goods and services flow within your business becomes an ever increasingly complex task. As paradigms shift, businesses must be able to respond quickly to external and internal events as competition forces costs to be driven down. Making strategic plans that will tie the hands of the organisation in the future, using functionality-limited tools, could result in the business losing millions of dollars over many years.
Having an optimised supply chain network targets the development of the most appropriate infrastructure system to supply the demand. The model must consider the whole network, its constraints, features and policies to optimise:
- What is the production capacity requirement on each site, year by year? Should a new facility be opened or closed? What investments will be required?
- What storage capacity will be required at each distribution centre? What investments will be required?
- Are new production lines required? Where and when? Should new capabilities be installed on current lines? Should some lines be closed?
- What are the optimal operating plans during the peak and off-peak seasons –Production plans and operating hours, distribution plan and Stock levels at each facility?
Integrated or separately from the above, the Distribution Network Optimisation considers:
- What is the optimal number of Distribution Centres and their locations – closing, relocating or opening new locations decisions
- Alternative storage facilities options – Cross docks, third-party logistics, other
- Options for direct distribution from the plants
- Different distribution modes
- Delivery time restrictions
- Reverse Logistics
The supply chain optimisation looks for the optimal decisions that maximises the return on investments of the whole network and reduces the present value of its operating costs.
The system allows the running of multiple scenarios to analyse the network sensitivity and risks, as well as looking for new business opportunities to save money.