What is a Supply Chain Design in logistics?

Table Of Content

• Green Supply Chain Management: What It Is and Why It Matters?
• Well, it’s not just about the cost…
• Capacity Planning
• The Supply Chain: From Raw Materials to Order Fulfillment
• Chapter 5: Learning objective 1: Understand the role of network design in a supply chain.
• How Transparent Should You Be With Your Supply Chain Network?

Managing an operation’s environmental impact holistically can help in addressing environmental, social, and governance issues more broadly. And the first step is often to understand the potential impact of driving eco-efficiency.

Green Supply Chain Management: What It Is and Why It Matters?

Another example is the Benetton Group which is a leading-edge garment supply chain in the world. But, 80% of its manufacturing operation is outsourced to thousands of independent small manufactures. This helped the Benetton group to reduce its manufacturing cost, synchronize the supply chain capacity with the fluctuated market demand, and alleviate the bullwhip effects.

Well, it’s not just about the cost…

How free trade agreements can help you maximize duty savings in your supply chain design - Thomson Reuters Tax & Accounting

How free trade agreements can help you maximize duty savings in your supply chain design.

Posted: Wed, 10 May 2023 07:00:00 GMT [source]

Talent availability is a main driver for the location of supply-chain roles, but talent needs nurturing. When not co-located, high-performing teams still meet periodically, which facilitates connection and promotes mutual support on the job. With remote-work settings amplifying the ability of companies to recruit talent with fewer location constraints, the increased challenge of social cohesion must be met. In many industries, new-product introductions and order fulfilment are critical value-creating processes. They are highly cross-functional, and suffer from the disconnects and misalignment created by functional silos. To complicate matters, parts of these processes are often done in different ways in different units—an inconsistency that creates confusion, slows responsiveness and increases error rates.

Capacity Planning

Each national subsidiary was permitted a high degree of operational independence from the parent company; understanding its own product development, manufacturing and marketing. This ‘hands-off’ approach was a response to the conditions at the time when international transport and communication were slow, costly and unreliable; and the national markets were highly differentiated. The evolution of global multinationals’ network could be an interesting example to understand the relevance of supply chain configuration. Optilogic’s platform allows you to simulate supply chain models to answer the “what-if” questions and scenarios within your end-to-end supply chain.

The Supply Chain: From Raw Materials to Order Fulfillment

Unfortunately, many companies don’t prioritize time to run variable simulations. This leaves organizations vulnerable to preventable disasters resulting from fragile supply chains. Service, risk, volatility, and ESG metrics are essential components of your supply chain network design. Every aspect of your production–sourcing, manufacturing, transport, warehousing, distribution, and all the micro-steps and elements in-between, including your policies and constraints–make up your supply chain design. Each business has its own goals, constraints, and strengths that will shape its SCM process. These are some of the models a company can adopt to guide its supply chain management efforts.

Supply Chain Design and Planning

In the cases included here, the modeling approach is driven by the nature of the inputs and the objective of the study. DfSC techniques are an efficient tool to create a product that integrates well with the logistics system. While component and manufacturing costs still play an integral role in the total costs of a project, an optimum supply chain will have a major influence. Simulating scenarios with varying demand patterns allows businesses to assess the resilience of their supply chain. This is particularly important in industries with seasonal demand or where market conditions are subject to frequent fluctuations. Evaluate the effects of changes in production capacity, warehouse space, or transportation capacity.

The agile, flexible and custom-configured models fall under this category. The demand is not steady, and there can be a need for customising the product. These models provide excellent flexibility for the company to make changes in the products when needed.

Chapter 5: Learning objective 1: Understand the role of network design in a supply chain.

The goal of having a good design is to optimise the flow of goods and ensure maximum efficiency. For most of the first time player average costs are typically an astonishing 10 times greater than optimum. In all cases, customer orders are essentially constant except for the small step increase near the start. The oscillation, amplification and phase lag observed in real supply chains are clearly visible in the displayed result.

How Transparent Should You Be With Your Supply Chain Network?

Supply chain management (SCM) is the process of managing the flow of goods and services to and from a business, including every step involved in turning raw materials and components into final products and getting them to the ultimate customer. Effective SCM can help streamline a company's activities to eliminate waste, maximize customer value, and gain a competitive advantage in the marketplace. A supply chain is defined as a set of relationships among suppliers, manufacturers, distributors, and retailers that facilitates the transformation of raw materials into final products.

Supply chain network design is an ongoing series of initiatives that drives organizational excellence. Most companies view supply chain network design as something you do once every three or four years, designating one or two individuals running optimization models. Unique supply chain network design allows companies to move away from simple warehouse location problems to planning, production, and distribution policies linked to planning and execution. Smart supply chain network design ties the policy element into a planning solution by having a design technology that acts as a digital model to replicate future states of policies.

One must consider the above basic questions when creating a supply chain design. The design must allow you to perform the below activities because they are important to achieve business goals. Join us at the Gartner Supply Chain Symposium/Xpo and discover how “Shift Left” can revolutionize your approach to supply chain management. The entities involved in the supply chain include producers, vendors, warehouses, transportation companies, distribution centers, and retailers.