Supply Chain Network design determines the location of facilities and product flow in order to achieve a company’s goals (minimize cost, maximize profit etc.) . It is a versatile solution that by modeling the entire network and associated costs can help assess a company’s supply chain strategy and optimize production, sourcing, and distribution plans. On an ongoing basis it can provide support for managing changes in demand, costs, exchange rates etc. For more long term decisions it can support mergers and acquisitions with evaluation of cost savings from combined network redesign.
The key drivers are:
- Demand patterns and timing
- Lanes and transportation costs
- Facility types, inventory and costs
- Production and supplier costs
Opalytics Technology Benefits:
- Easy to use cloud based interface
- End to end supply chain modeling from suppliers through customers
- Mapping, visualizations and dashboards to support analysis
- Flexible transportation options including integration to UPS and SMC3 rates
- Multi-objective analysis to support optimization of multiple KPIs
- Automatic aggregation with clustering tools
Example: Network Design for Distributor
Company: A nation-wide US distributor with hundreds of depots
Background: Service was not efficient and the supply chain team needed to determine best depot locations and flow for lowest cost.
Outcome: Since the problem was large we needed to enable dynamic aggregation and take advantage of fast solve times to deliver quick results. The company could see potential to reduce cost by over 5 percent.