Strategic Decisions in Network Design
We help our customers go beyond the traditional cost-cutting approach to network design optimization by considering cross-functional impacts, so they can prioritize long-term resilience against demand fluctuations, process efficiencies, risk mitigation, and more.
Network design is one of the most crucial processes in driving a supply chain’s efficiency and performance.
With constantly changing supply chain dynamics, the need to reduce costs, maintain service levels, and appropriately utilize existing assets is more pressing than ever. For this reason, “what if” is a crucial phrase for every supply chain. Regarding “what ifs,” truly forward-thinking companies are thinking about their end-to-end value chain, not just their supply chain.
Primary objectives for optimizing the network design include minimizing cost while simplifying or streamlining the network footprint. But strategic Supply Chain can be enabled with trade-off analysis in extending beyond cost objectives to service, resiliency, or sustainability as objectives.
- Distribution footprint and flow optimization
- Decisions to influence demand (pricing, marketing/promotions, better availability/services)
- Decisions on buying and selling intermediate/work-in-progress products? Private label contracts
- Evaluations to segment SKUs and policy setting (pricing, promotion budget, inventory management, order quantity)
- Decisions on resources (labor, production lines/ machine centers) and activities
- Optimize capacity across labor and production, while considering inventory and service level targets
- Make Vs. Buy Decisions
- How do we respond to unexpected disruptions?
- How robust, responsive, and flexible is my supply chain design to changes in key drivers?
- How should my supply chain react to disruptions and special events?
Productivity & margins
Operational costs by creating optimal production plans
Operating costs & production capacity