Supply Chain Optimization

Supply Chain Network Design and Optimization

Supply chain network design implies finding optimal locations for new facilities (distribution centers, warehouses, and production sites), defining the flows between them, and balancing costs. An optimal design is crucial for the supply chain to be reliable and cost-efficient, as well as to be ready to deal with supply and demand uncertainty.

Supply chain network optimization seeks to find an optimal combination of production sites and distribution centers from the several pre-suggested. The solution should match supply and demand, as well as find a network configuration with the lowest costs. The outputs of network optimization will show optimal site locations, values of transportation and production flows, inventory at the end of each period, and associated costs. 

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Transportation and Route Optimization

Supply chain transportation networks are at their best and most efficient when daily operations are backed by strategic and tactical planning. By considering medium- and long-term logistical demands your supply chain can run smoothly and be a driver of value.

Planning transportation at strategic and tactical levels

• Accounting for randomness in lead times, loading times, demand, and order processing

• Determining better transportation policies and improving related business rules

• Estimating fleet size and vehicle utilization rates

• Supporting supply chain design with precise transportation data

• Assessing risks and managing changes in logistics

 

Inventory Optimization

In a supply chain, keeping your inventory costs as low as possible while maintaining your target customer service is a challenge. It is also necessary to consider contingencies for increased demand or discrepancies in supply. Inventory planning and optimization is used for testing inventory policies and calculating balanced policy combinations.

• Cut inventory carrying costs, including storage and labor expenditures

• Release short-term capital

• Boost inventory turnover

• Increase customer service level

• Reduce obsolete inventory rates

 

Production Capacity Planning

Manufacturing plans have to meet the requirements of the supply chain, including demand, shipping terms, downstream inventory policies, and more. In order to fulfill these needs, the production capacity planning have to provide the instruments for finding and justifying solutions and calculating the ROI of the network change decisions.