While supply chain planning and execution are important elements, much of the cost structure and competitiveness of a supply chain is inherently dictated by the design of the supply chain. It is therefore critical for businesses to identify the optimal design for their integrated supply chain that is feasible to achieve. Often, as the business evolves and / or external business conditions change significantly it is necessary to revisit these decisions and determine what changes are necessary to the current supply chain transformation path.
The Challenge
The Integrated Supply Chain for a business encompasses the Source-Make-Transport-Distibute-Customer elements. This entire supply chain is usually fairly complex due to the fact that:
Sourcing, Manufacturing and Distribution can have global reach with multiple entities and hierarchies
There are multiple raw materials, intermediates and products that travel through the supply chain
There are transportation, tariffs/duties and individual customer lead time requirements that are varied in nature
This complexity makes it challenging to identify the optimal state of the supply chain as well as the incremental steps that can be taken by a business to get there.
The Solution
SCA’s solutions facilitate an organization to generate the Total System Cost of any Integrated Supply Chain. It allows users to identify variables that are feasible for business transformation (E.g. shutdowns, greenfields, product moves, mode changes, single/multi-tier hierarchies) and helps identify the optimal supply chain and its financial and operational impact on the business. SCA’s solutions also helps companies identify the incremental steps that are able to meet the business goals of the company, thereby facilitating the transition of the company from its current state towards the optimal supply chain, that would best improve the ability of the operations to manufacture and distribute the products at the lowest costs.
The following decisions are some of the commonly exposed:
Optimal Supply Chain Network: Exploring the supply chain that provides the optimal cost while continuing to meet source levels required to service customers.
Reverse Logistics: Exploring the returns supply chain options to minimize total cost of the reverse supply chain.
