POD2 - Supply Network Performance

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Overview

This POD is used to design or modify an entire supply network, modelling and manipulating manufacturing and distribution nodes to come up with the best combination of locations that deliver business goals.

We draw heavily from the supply network optimisation techniques developed by IBM over the last 20 years and guide clients through a series of what-if analyses using an iterative modelling technique.

Big Client Questions

  • How many warehouses should we have, where should they be, how large should they be, what products should they distribute and how will we serve our different types of customers?
  • How many plants or manufacturing sites should we have, where should they be, how large should they be, how many production lines should we have and what products should they make, and which warehouses should they service?
  • Which products should we make internally and which should we source from outside firms?
  • What is the trade-off between the number of facilities and overall costs and customer service level?
  • What is the impact of changes in demand, labour cost, and commodity pricing on the network?
  • How do we ensure the proper capacity and flexibility within the network? To meet demand growth, do we need to expand our existing plants or build new plants? When do we need to add this capacity?

POD Contents and Useful Business Insights

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Client Commitment

There are many ways to set up a network modelling group although they will generally include;

  • Executive Sponsor
  • Project Manager
  • Modeller/Analyst
  • IT Expert (for data collection)
  • Subject matter experts (transportation, demand planning, manufacturing)

The size and seniority of the group will depend on the scope of the project (country - regional - global)

Bullant Capability

Apart from fulfilling the role of specialist modelling resource, Bullant can help take the team through the different phases of the project, specifically;

  • Model scoping and data collection
  • Data analysis and validation
  • Baseline development and validation
  • What-if scenario analysis
  • Final conclusion and development of recommendations

 

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