Companies are considering network designs as the strategic solution to help the business in satisfying the customer demand, improve overall corporate performance and remain in the global market. Designing a supply chain network is a process which involves evaluating the alternative strategies and finally opting the one that gives maximum profitability and helps improve performance.
Network modeling helps to develop the implementation plans required to translate strategic decisions into reality. Modeling of supply chain network involves 3 phases:
In the Phase 1 the project team gathers the data about the validating operations and the costs in the present network system and these are used as bench marks against which all other options will be compared.
In the phase 2 high level models are built to test the potential and calculate the appropriate cost and service levels. Each scenario is tested for 'robustness' and in doing so, it serves to verify and validate the network model. Models are often estimated at the SKU level, with multiple time periods, and the entire end-to-end chains are evaluated.
Phase 3 involves the final selection of the network modeling and the justification of the selected network. The results must now be compared with the baseline in order to build the business case for change.
Supply chain network design projects are usually designed in few weeks and the payback is often realized within the first few months of implementation. The network modeling helps the business to reduce costs, improve customer service and it is also a great effect on the profitability of the company.
Network modeling helps to develop the implementation plans required to translate strategic decisions into reality. Modeling of supply chain network involves 3 phases:
In the Phase 1 the project team gathers the data about the validating operations and the costs in the present network system and these are used as bench marks against which all other options will be compared.
In the phase 2 high level models are built to test the potential and calculate the appropriate cost and service levels. Each scenario is tested for 'robustness' and in doing so, it serves to verify and validate the network model. Models are often estimated at the SKU level, with multiple time periods, and the entire end-to-end chains are evaluated.
Phase 3 involves the final selection of the network modeling and the justification of the selected network. The results must now be compared with the baseline in order to build the business case for change.
Supply chain network design projects are usually designed in few weeks and the payback is often realized within the first few months of implementation. The network modeling helps the business to reduce costs, improve customer service and it is also a great effect on the profitability of the company.
No comments:
Post a Comment