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Yet the growth of global markets, increasing customer expectations, rising costs, and more intense and diverse competitive pressures are driving the development of new supply chain strategies and intricate network designs.
That increasing complexity is exactly why supply chain networks need to be frequently re-evaluated.
In fact, a world class supply chain network is essential for product to consistently flow from the point of manufacture to the end user, regardless of the industry served. A well-designed supply chain network can significantly improve margins, support expansion into new markets, enhance the customer experience, and reduce operating costs.
That applies to companies in all stages of maturity: Growth-oriented companies, companies in transition, and companies with stable business operations can all benefit from distribution networks that are optimized to meet ever present challenges and opportunities.
While there are more tools available than in the past to perform a network analysis, there remain a number of important steps that must be taken. In this article, we present a blueprint for successful supply chain optimization. It Starts With a Network A world class, transformational supply chain begins with a network that employs an all encompassing view of the various business areas that manage delivery of products to customers.
The result is significant capital, operational, and tax savings while achieving optimal customer satisfaction. There are three critical elements to a world class supply chain network. With complex and competing business goals—such as minimizing capital, improving operating margins, lowering the carbon footprint, and enhancing the customer experience—a clear and concise supply chain strategy must be fully aligned with your business strategy.
Surprisingly, many companies begin reducing network costs before they define how the network can be fully leveraged to support the business strategy.
Uncertainty in product mix and volumes, expanding markets, margin goals, dynamic customer service strategies, value-added opportunities, and product returns and obsolescence are just some of the considerations that are often given minimal consideration or overlooked entirely.
Focus on Total Profit Optimization. An increasing number of companies are asking the question: Currently, a combination of operating scenarios are required that drive alternative network models. Then sensitivity analysis is performed to evaluate impacts on how a company is working to improve the parameters it uses to drive shareholder value.
EBIDTA, capital employed, working capital, operating expenses, tax effectiveness, margins, and cash-to-cash conversion. Project Versus Ongoing Process. World class supply chain networks evolve as sourcing adapts to market changes, product line performance varies, and companies integrate.
A world class network incorporates an ongoing process that focuses on the flexibility of the supply chain and ensures that objectives are met consistently and over a range of market conditions while enhancing the key drivers of shareholder value.Find and compare Supply Chain Management software.
Free, interactive tool to quickly narrow your choices and contact multiple vendors. Source One's suite of whitepapers leverage strategies and best practices to assist in the advancement of procurement and strategic sourcing.
Sandra MacQuillan is Senior Vice President and Chief Supply Chain Officer for Kimberly-Clark Corporation, leading their Global Supply Chain organization with global responsibilities for Procurement, Manufacturing, Logistics, Sustainability, Safety, Quality and Regulatory.
Facility location decisions play a critical role in the strategic design of supply chain networks. In this paper, a literature review of facility location models in the context of supply chain management is given.
INTEGRATED SUPPLY CHAIN DESIGN MODELS 3 elements with customer service goals is a considerable undertaking for most busi-nesses, doing so can provide a company with a tremendous competitive advantage.
Phase I: Strategic Supply Chain Model Paper The Oklahoma Gas and Electric internal Supply Chain is an important part of the work process in order to keep OGE working efficiently.