In the current global business scenario supply network planning is endorsed by many companies that have global interests. It has helped them transform their business. This methodology has been shaping complex decisions involving sourcing, manufacturing, distribution, and utilization. There are various benefits that these companies have with supply network planning solution.
The set of functions can aid enterprises in deriving the total delivered costs. Other key factors such as developing the investment plans for capital and mapping out asset utilization strategies also get impacted. All these factors help in enabling profitable growth. They can transform business conditions favorably for the company. To stay ahead of the curve several of the top Fortune 500 firms subscribe to such solutions for profit optimization. This kind of an approach in supply network planning also has great results for both the customer and the industry.
The advantages of Network Design and Planning
Designing one’s supply chain involves many decisions and options. Each one of these can impact profitability, servicing, and competitive edge over contenders. To make sure that one’s design is optimal, it is important that the critical business data from one’s ERP and business insights are clearly mapped out. By combining real world knowledge with the data at hand, the software will be able to perfectly model numerous scenarios. It can also optimize the design to display the total delivery cost by the customer and the product to meet strategic requirements.
How does such an approach improve Supply Chain Management?
A solid infrastructure plan takes care of things in the future years. Thus companies must make investments in new technologies that will help them gain long-term foresight. To optimize plans, the consultants or in-house team will often commence the process by understanding the intricacies of the growth strategy and the logistical challenges faced by them constantly. There is a tried and tested 5-step process. It will enable companies to consider three major aspects viz., supply chain cost, customer service, and strategic business initiatives. This helps companies in determining the optimal infrastructure plan to support operations.
Some of the critical decisions taken involve the following:
- Location and utilization of the plant, warehouse, and distribution centers
- The optimal capacity requirement for each location
- Transportation modes and routes that need to be used to move products through the network
- Deciding which customers should be served from which facility and by which mode of transportation
- The expansion capacity needed and how and where it should occur
- Merging business or operations across subsidiaries, means knowing and listing which facilities and resources to be used and to what levels.
What are the best results possible?
The use of sophisticated software ensures the following:
- Minimizes the total supply chain cost (such as transportation, manufacturing, inventory, and raw materials supply)
- Identifies total delivery cost to every customer and product.
- Capitalizes on harnessing maximum customer service potential
- Boosts profitability
- Avoids lags and delays in capital investments by ensuring capacity investments at the right place and time
- Lessens excess resources and infrastructure and realizes synergistic opportunities when merging discrete business operations
Thus, there are a multitude of benefits offered by having such a system in place. Adapting software solutions can help to streamline all projects of the company which need the supply chain on a regular basis.
Amy
