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17 dec 2019

How to design & optimize your supply chain network

Thoughts

When a company is about to enter a new market, to reduce costs or invest in growth a strategic design of the supply chain can be a great enabler. In a world where assortments, suppliers, production sites, warehouses and/or demand changes, the supply chain network is often in the need of a redesign and optimization.

Since a lot of companies are struggling with how to approach these challenges, we have gathered learnings from our many network design and flow optimization projects. We will focus on why it is necessary, what needs to be done and how to do it.

The short version

Your supply chain network design may need to be evaluated (and maybe redesigned) because of:

  • Changes in market demands
  • Possible cost and service improvements
  • The potential to improve quality due to lack of control and visibility
  • Sourcing possibilities
  • Changes in competition
  • Risk management


It might result in:

  • Re-designing an existing network by relocating its nodes
  • Setting up a new network
  • Improve flows in order to decrease lead-time
  • Higher service level
  • Improved working capital
How to redesign your supply chain network

There are 4 steps you have to go through in order to know whether or not to do something differently.

  1. Be clear on the Reason for change
  2. Conduct a Future state quantification & gap analysis against current situation
  3. Generate several possible solutions to handle identified gap through Solution design
  4. Get to final solution through an Evaluation process and recommendation

Download the full PDF

We have gathered our approach to initiate redesign of your supply chain network together with expert insight in this paper.