Strengthening your supply chain one link at a time.
Peace of Mind from A Well-Planned Supply Chain Network
Does your supply chain network plan provide peace of mind? You and your organization have worked hard to plan your supply chain network. More than likely, production and distribution locations have been chosen carefully or acquired through mergers and acquisitions over a period of time. Underperforming locations may have been closed. Growth may have forced expansion in other areas. For the most part things may operate on time and on budget. You and your team have done well to make the best decisions possible and do the next right thing over the years. Business may be profitable, and your supply chain operates smoothly most of the time. But do you have peace of mind that your network is optimal, efficient, and as prepared as it could be? Are you well positioned for future growth? Are you confident in the decisions that have been made or does uncertainty loom on the road ahead?
It may be time for an independent and unbiased network analysis to make sure your supply chain is prepared for the future. The potential benefits of such a study as performed by a professional supply chain services firm are as follows:
Validation of Current Strategy: Perhaps there are doubts about whether the locations in your network are in the right geographies despite the best efforts to strategically plan your network footprint. Independent validation of the current strategy can be invaluable for building confidence in the supply chain of the organization. Such a study can be used to lend credibility to the internal work already done and may suggest minor changes to the current strategy. The relatively low cost of a network analysis is worth the peace of mind gained from such an effort.
Optimization of Customer Sourcing: Your distribution centers may generally be in the right geographies, but perhaps the customers are being serviced sub optimally and inventory is deployed sub optimally. Perhaps there are opportunities to consolidate outbound shipments to customers. Improving service and reducing cost by more effectively utilizing your current network would be relatively simple to implement, when the correct sourcing is proved through an optimization model. A robust network model can help refine and optimize even the best planned networks.
Preparation for Future Growth: Even if your network is currently operating like a well-oiled machine, change is inevitable. Future growth will demand dynamic flexibility and continuous improvement. Where should the next production point or distribution center be? Will existing nodes have the capacity to absorb growth and help business thrive in the years to come? Planning for the future using a network model is a necessity in a rapidly changing environment.
Contingency Planning: The most robust supply chains are built to withstand the unexpected. A plan to manage risk in the supply chain is critical for sustaining success in the face of a variety of issues that may arise. Supplier failure, technology challenges, or natural disasters which may take a distribution center offline temporarily may strain the network. Advanced planning for such scenarios using a network model will help your business be ready to weather potential storms ahead.
The peace of mind that comes from the knowledge that your business has built the best supply chain network possible is an invaluable asset to any organization. It is wise to bolster the good work your supply chain team has already done with an independent and professional supply chain network analysis. By doing so, the inevitable supply chain challenges ahead can be met with confidence and peace of mind.
