Network Design and Planning
“The right supply chain network design
could trim 15% off your supply chain costs.
How is your network performing?”
Supply Chain Network Design and Planning
Profit Point’s Supply Chain Design and Network Optimization services help you solve complex decisions across sourcing, manufacturing, distribution and utilization. These services help you identify total delivered cost (TDC), develop capital investment plans and asset utilization strategies that will enable profitable growth in a changing business environment. All of our supply chain consultants are seasoned veterans that have years of management-level experience solving complex planning needs for Fortune 500 companies across a range of industries for businesses around the globe. We apply that depth of experience and proven optimization techniques to ensure that your supply chain maximizes customer service and profitability.
Benefits of Network Design and Planning
Designing your supply chain network involves billions of options and numerous decisions. And, each of these decisions will impact your service levels, profitability and competitive advantage. To ensure an optimal design, it is critical that key business data from your ERP and your business insights are included. By combining your real world knowledge with your data, Profit Point is able to model numerous scenarios and optimize your design to expose total delivered cost by customer and product to meet your company’s strategic requirements.
As a business manager you have the ultimate responsibility over these critical infrastructure decisions. We combine our extensive experience in supply chain design with best of breed optimization technology to ensure that your plan will lead you to the best infrastructure decisions.
Our Supply Chain Improvement Process
A robust infrastructure plan must take in to account all of your business requirements for years to come. To optimize your plan, our consultants begin by understanding your growth strategy and the logistical challenges that your organization faces. We lead you through a proven five-step supply chain analysis and improvement process that will enable your business to consider total supply chain cost, customer service and strategic business initiatives. Through this process we help you determine the optimal infrastructure plan to support your business operations including critical decisions related to:
- plant, warehouse and distribution center locations and utilization
- the capacity that should be available at each of these locations
- the transportation modes and lanes that should be used to move product through your network
- which customers should be served from each facility and by which modes of transportation
- when is expansion of capacity needed and where and how it should occur
- when merging business or operations across subsidiaries, which facilities should be used and at what levels, and which ones should be closed
What You Can Expect
Once we have completed your network plan, you will have a clear roadmap for aligning your supply chain to your business needs – a plan that will guide your business processes for years to come. We use advanced mathematical optimization techniques to ensure that your plan:
- Minimizes your total supply chain costs, including transportation, manufacturing, inventory and raw material supply
- Identifies total delivered cost for every customer and product
- Maximizes your organization’s customer service potential
- Improves profitability by identifying how to service your customer demand through your Supply Chain network
- Avoids or delays capital investments by maximizing the utilization of your existing assets and minimizes enterprise capital expense by ensuring that capacity investments are targeted for the right place at the right time
- Minimizes excess infrastructure and realizes synergistic opportunities when merging discrete business operations
When it comes to designing an optimized supply chain network, there are no cookie-cutter solutions. Every business has a unique set of requirements and those requirements shift often.
Profit Point has been optimizing infrastructure plans across a wide variety of industries and for businesses of all sizes. Below is a sampling of just a few success stories:
- Read about how the Rohm and Haas network optimization plan was able to achieve a 38% reduction in the total number of shipping sites used, resulting in annual savings of several millions of dollars.
- Find out how a Global Beverage Bottler improved their infrastructure planning decisions using Profit Point’s products and services.
- Discover how a Roofing Materials Manufacturer’s Supply Chain Infrastructure was changed to generate achievable annual savings of $1M.
- Understand how a Specialty Chemicals Company identified $700,000 in annual savings by using analytics and optimization-based technologies to support the rationalization of a global warehouse locations and distribution network.
We have completed successful infrastructure studies worldwide. Click the map below to see the countries where we have helped to design and optimize a supply chain network.