Global Supply Chain Design LOGY Helsinki
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2 Global Supply Chain Design LOGY Helsinki ANDERS REMNEBÄCK
3 Optilon Business Areas
4 Optilon customers
5 What is Supply Chain Design?as Supply Chain Design is a transformation of the supply chain from a historical accident to an intentionally engineered system.?
6 It s All About Trade-Offs Design decisions are above all about trade-offs: Cost Savings vs. Service Cost vs. Environment Stability vs. Flexibility Responsiveness vs. Efficiency What is your Supply Chain designed to do?
7 Supply Chain Design System CURRENT OPERATIONS Analysis of Existing Supply Chain FUTURE OPERATIONS Strategy for New Supply Chain VISIBILITY SCENARIO ANALYSIS RAPID RESPONSE What is my current supply chain profile? What if we try this? What if this happens? How should I react to an unplanned event?
8 Typical Supply Chain Design questions If we need another DC, where to locate it? What is my actual cost-to-serve each product to each customer? How should we flow each product through the network? Where and when should we produce each product? Where should we stock products? How large is our carbon footprint today, and how much would it cost to reduce it? What are the effects on routes if the number of DCs is changed? How sensitive is our supply chain?
9 Supply Chain Design Methodology DECISION RISK ANALYSIS OPTIMIZE PERFORMANCE CURRENT PERFORMANCE QUESTION-TO-ANSWER Make decision based on numerical analysis Sensitivity analysis Simulate future performance Min cost or max profit Constraints Predict KPIs Verify operational and financial accuracy As Is KPIs Scope and target Basic data & Scenarios KPIs
10 Keys to Lasting Supply Chain Advantages 1 Technology 2 Individual 3 Organization Use World-leading Supply Chain Planning Applications Empower Individuals to be Successful Analysts Enable Organizational Excellence
11 Solution Areas Supply Chain Design as Network Design Sales & Ops Planning Transport Modeling Inventory Modeling Strategic Sourcing Product Intro/ Phase-out M&A Rationalization Risk Analysis Greenhouse Gas Analysis Supplier Production Distribution Customer
12 Greenfield Optimization Center of Gravity Greenfield Formulation Service Based Greenfield Formulation Center of Gravity formulation solves the Where? question given customer locations, demand volumes and number of DCs as inputs. The Center of Gravity method can often yield the lowest cost solutions from a freight perspective. It is often utilized for completely realigning the current footprint or identifying the next best location to setup a facility. Service Based formulation allows the model to decide How Many? and Where? given customer locations and service requirements. Service Based formulation can provide a strategic advantage from a service lead time perspective. The objective is to cover the most number of customers using the fewest number of distribution points within a defined set of service goals.
13 Supply Chain Design Metrics R I S K Supply Disruption Transportation Variability Demand Volatility Supply Volatility Sensitivity to Costs Natural Disasters, Structural/Geographic Service Financials Supply Chain On Time Delivery Fill Rate Lead time Profit, Total Cost, Total Revenue Fixed and Variable Facility Costs Transportation, Inventory, Taxes Facility and Equipment Footprint Inventory & Capacity Complexity, Sourcing Geopolitical Change Sustainability Greenhouse Gas Emissions / Energy Hazardous or Banned Content Waste
14 Global Leaders Moving To Supply Chain Design Retail Leaders Wal-Mart Kroger Target Macy s Safeway Supervalu CVS Staples Best Buy Williams-Sonoma Limited Brands Cabela s CPG / Food & Bev A-B InBev Energizer Kimberly-Clark Kellogg s HJ Heinz Campbell s Diageo Del Monte Manufacturers ExxonMobil 3M Masco LyondellBassel Ford Caterpillar Philips TetraPak Logistics CH Robinson JB Hunt DHL Damco Kenco Transplace UTi WWL
15 Supply Chain Design Trends 1 Need for in-house skills From desktop solution to true enterprise solutions 6 Need for interactive data visualization 8 Software vendors start explore mobile applications Strategy decisions require implementation level of detail bigger models Software vendors start using the cloud 5 Ease of use and wizards 9 Need for cross-functional analysis 3 Need for objective/neutral facts 7 Classic network optimization is not enough
16 Mobile Supply Chain Design
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