Strengthening your supply chain one link at a time.
The term “supply chain” continues to be a relatively new but often misunderstood concept for most outside of the industry. As we move further away from the Covid-19 pandemic and technology progresses, many within the industry are asking how they can continue improve supply chain networks to be flexible, sustainable, and robust. One such approach to supply chain improvement is to execut a network analysis. But often people ask, what is a network analysis and how can it help? This simple analogy to the NFL Draft may be a good way to think of a network analysis.
Consider the NFL Draft process. When starting a strategic network study, it is similar to the NFL “combine.” The biggest key in starting a project is the collecting of data. Many have preconceptions when it comes to data, but one thing remains true: every successful network analysis builds a foundation with the data. The biggest question when it comes to collecting data is what is the quality of the data? Are there duplicate SKUs? Are there gaps within the timeline of the data period? Is all the transactional data included? What can be determined about the existing network through data analysis?
Similarly, when a player gets to the combine, NFL scouts are looking for the key measurables to evaluate the player, such as forty-yard dash times, height and weight, vertical leap, broad jumps, etc. It is the same with a client’s data. Key data points are the throughput of DCs, location of suppliers and customers, inventory levels, cost of production, freight costs, etc. The data review is our version of the “scouting report.” It contains a thorough picture of the client’s supply chain just as the scouting report provides all the needed information about a prospective NFL player.
Once the data analysis is presented to the client and it passes scrutiny and validation, modeling begins in order to see what the future network may look like, just as an NFL team may begin to imagine the future of the team. A variety of scenarios are tested based on the consultant’s experience and the client’s requests to build the “scouting report.” Decisions and adjustments are made, and action plans based on solid definitive knowledge begin to take shape. Fine-tuning, feedback from the team, and attention to detail come into play, just as the excitement builds and the NFL draft nears.
As player interviews are conducted, draft boards and top prospect lists begin to emerge. The network analysis dives deeper into the best possible outcomes from the model runs. The project stakeholders go through a draft process of sorts, selecting the best scenarios for the future of the supply chain. Finally, a curated supply chain draft board takes shape, recommendations become clear, and decisions are made.
Why do a network analysis in the first place? Just like any NFL team wants continuous improvement to become more competitive and win more games, such are the goals of supply chain network professionals. Every NFL team on draft night is looking for the best “pick” to achieve success. The network analysis answers the key questions of where the client can improve the supply chain network by cutting costs, achieving efficiency gains, and opening or closing the optimal facilities. St. Onge Company seeks to perform strategic network analysis efforts to help clients select the best picks in order to improve their supply chains, become more competitive, and ultimately, to succeed!
—Nick O’Conner, St. Onge Company
