Increased customer satisfaction, balancing the cost and revenue in order to generate profits, highly optimized operations, and a data-driven approach, lead to a more accurate way of designing supply chain networks.
Welcome to the Network Design kingdom, the sovereign ruler of the supply chain industry! Its laws and practices are obligations for all the logistics lovers out there to obey and follow the command of ultimate prosperity. But only if people recognize that the ruler owns the right tools!
Organizations want to be able to control their supply chain by minimizing risks and maximizing their efficiency in bringing goods and services to market. Choosing the right tools is a huge help on the road, and that’s what makes crucial differences in the market. Persistent and boring issues such as delays, partial deliveries, and suboptimal quality, cause easy disruptions in your ability to deliver your products or services to your customers.
The epicenter of organizations’ attention would be building a network that can configure their supply chains in a way that is future-ready and market-oriented. A deeper mining job is required in the areas like demand, supply, capacity, storage, technological requirements, costs… The rapidly shifting consumer choices and preferences and the uncertain demands of the services and products make it important to pre-design the network involved in the supply chain.
Supply chain network design is the process of building and modeling your supply chain so that you and other leaders can better understand the costs and time it requires to bring products and services to market given your available resources.
The advantages of optimized network design are writing themselves, but some of the most important ones are:
- An efficient supply chain, which results in increased customer satisfaction.
- Balancing the cost and revenue in order to generate profits. The cost of the operations could be put under check and can be monitored.
- Highly optimized operations, and resources used in the most efficient way.
- Extremely competitive advantage for a business with dominant leaders in their relevant fields.
- A data-driven approach, ensuring a more accurate way of designing supply chain networks.
To help leaders go through every aspect of the supply chain, to deliver products and services on time, in full, and at the lowest possible cost, decisions need to be made with the right data in hand. Supply chain network design is most successful when you bring disparate pieces of data together to formulate a complete view of your supply chain. Through modeling and what-if scenarios, leaders can manipulate the data to see every possible option before deciding on a plan.
Logistic network design processes allow the supply chain to function like an automated machine committed to satisfying the customers by sticking to delivery timelines and satisfying the company by staying within budget limits.
Here are some of the processes involved in logistics network design: Capacity assessment of distribution centers, Assessment of fleet capacity, Logistics network scenario modeling, Warehouse customer alignment, Optimizing the network design and budgeting logistics costs, Determining the workflow, Optimizing inventory deployment.
Once you create a logistics network design strategy you need to analyze the performance of the network – total costs incurred including facilities, transportation, and inventory; customer satisfaction levels; overall value proposition; current gaps between strategy and actual capacity. Once you assess the strategy and find gaps in the plan, generate alternative tactical plans for closing the gaps. This will contribute to further cost reduction and better handling of customer demand leading to better logistics management.
Supply chain efficiency for distributing the products is strongly attached to finding the best warehouse locations, to effectively handle customer demand at minimal costs. The logistics network is a key component of the supply chain that links manufacturers, suppliers, retailers, and consumers. Whatever industry you are coming from, the goal is clear – you will be the king and have all the power if you optimize your supply chain and get total visibility over your network design, which will bring your logistics operations and decision-making up to full speed. Jumped in that race car already? Don’t worry, they are some seats left, just click here, and start your one-of-a-kind network design adventure: https://log-hub.com/network-design-simulator/