Supply Chain Network Design

 

 
  • Introduction
  • Challenges
  • Solutions
  • Benefits
  • Features
  • More

Introduction

Business environment changes continuously; be it, change in demand, cost of material, lead time, logistics cost, tax structure or regulations. Such environmental changes affect the supply chain cost, and thus the product cost, profit and finally shareholder value.

Is your company adapting to such changes?

Supply Chain Network Analysis is the first step towards an entire supply chain improvement. It is important to choose suppliers, plant locations and capacities and warehouse locations on a long term basis to meet the market demand with minimum lead time (and / or) minimal cost.

Challenges

OptiRisk can help you answer the following questions, which would help you improve the business KPIs – reduced cost, improved service level, increased revenue, and enhanced shareholder value.

  • What are the optimal locations to open / close / relocate plants & warehouses based on total logistics cost, regional tax structures, benefits etc…?
  • Should the production capacity be increased?
  • Which suppliers should supply raw materials? And how much?
  • What are the optimal locations for warehouses based on local tax structures, and the cost of opening, closing, and running a warehouse?
  • Which kind of transportation should be used?
  • How much material should a given plant supply to a given warehouse?
  • Which warehouse will cater to which demand zone(s)?

If you have evaluated these questions more than two years, then most probably you are spend more on supply chain than required.

Solution

OptiRisk uses scientifically proven models to solve the network optimization problem. After a detailed study of existing supply chain, its cost driver, demand, business rules, our consultant undertake a detailed data driven approach to identify the optimal supply chain network design, i.c: locations of plants, warehouses, capacity, etc. Our tool offers “what-if” analysis of the proposed solution and other network configurations. Such “what-if” simulation helps the management to understand the impact of changes in the environmental variables.

Benefits

  • 10-30% reduction in supply chain costs
  • Improved operating efficiencies 10 – 15% reduction in the lead time.
  • Minimal number of warehouses - reduced capital investment.
  • 20% to 40% inventory reduction.
  • Free up capital
    • Improved RoCE
    • Reduced Debt to Equity Ratio
  • Go GREEN! Reduce mileage, save fuel and reduce carbon emissions.
  • A minimum of 5:1 ROI for work undertaken (10:1 to 30:1 typical)
  • Payback within 6 months or less

Features

  • Maps for better visual understanding of the network.
  • Ability to compare various scenarios and then take an informed decision.
  • Local tax structures can be incorporated in the model for accurate decisions.
 
x
  • Contact Us
  • Request for more information
  • Request a demo
  • Ask the experts
Name:
Job Title:
Phone No:
Email Address:
Company:
Address 1:
Address 2:
Town:
Postal Code:
Country:
No of Vehicles:
Type your message/enquiry here:
Name:
Job Title:
Phone No:
Email Address:
Company:
Address 1:
Address 2:
Town:
Country:
Postal Code:
No of Vehicles:
How did you hear about us?:
Type your message/enquiry here:
Name:
Job Title:
Phone No:
Email Address:
Company:
Industry:
Country:
No of Vehicles:
No of Depots:
How did you hear about us?:
Type your message/enquiry here:
Name:
Job Title:
Phone No:
Email Address:
Company:
Industry:
Country:
No of Vehicles:
No of Depots:
How did you hear about us?:
Type your message/enquiry here:
x
Email this page!!