Towards Better Profitability

Supply Chain Management and Optimization

Based on our experience typical savings of 10-20% in logistics costs are achieved when optimizing structure for the first time using a mathematical tool.

Benefits gained by Supply Chain Network Optimization:

  • Releasing working capital tied in production and  floating assets tied in supply chain
  • Eliminating unnecessary transportation
  • Developing operational models for distribution channel and customer service
  • Control risks by planning a flexible network
  • Ensuring investments in right areas
  • Simulation (what-if scenarios) of changes in business-areas and costs

Content of a Project

Goal:
To find the most optimal supply chain network structure by total costs (investment and operative costs)

Implementation:
Customer’s production and distribution network is modelled and optimized using a cost-based tool (Oracle SNO).

Deliverables:

  • Optimal structure of production and logistics
  • Optimal capacities of production and logistics
  • Production allocation by plant
  • Cost effects
  • Sensitivity of the solution
  • Competitor analysis and benchmarking
  • SC training program
  • Material balance
  • SC cost model
  • Implementation
Our references Strategic Network Optimization Tool
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