Monday, September 22, 2014

Culture of Network Modelling

When we speak about how to leverage the network design in supply chain for dealing with ever growing complexities in demands, these are some of the points worth noticing :

  • Solve time on target models of processes.
  • Costing model should represent unique supply chain features.
  • reporting should be included with visualization. 
  • End to end model from tiers to suppliers. 
Today there are many logistics management companies which can contract this work of designing a network flow. Logistics management has become more efficient through softwares such as LLamasoft which permits users to design networks. These software also come with the capabilities of measuring cost and risk. A snapshot of the product borrowed from their site with due credits to their intellectual property rights.(1)Supply chain network model

Another pioneer in this segment are the CHAINalytics group who are global leaders in supply chain consulting, analytics and market intelligence. They believe that the best way to go about planning is to serve customers with giving them consolidated information about assets, new markets, cost minimization techniques, facility location and capacity, tracking the service requirement and product portfolio and pricing. 
source : IndustryWeek (4)

The traditional decentralized silos results in sub optimal results. This also has the problem of cross functional silos. Distribution decisions are constrained and affect the procurement and manufacturing process as well.  By networking the model, it menas we are counter intuitively planning the entire process and also saving on material cost which would have otherwise been excess. The companies should generally consider shifting the production and distribution on a monthly or quaterly basis to advantage of cost and service opportunities. A modelling deign would work to demonstrate how strategic and tactical decisions can be better made by networks in supply chains. (3)


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