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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:
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Releasing working capital tied in production and floating assets tied in supply chain
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Eliminating unnecessary transportation
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Developing operational models for distribution channel and customer service
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Control risks by planning a flexible network
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Ensuring investments in right areas
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Simulation (what-if scenarios) of changes in business-areas and costs
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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:
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Optimal structure of production and logistics
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Optimal capacities of production and logistics
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Production allocation by plant
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Cost effects
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Sensitivity of the solution
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Competitor analysis and benchmarking
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SC training program
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Material balance
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SC cost model
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Implementation
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