the 3 golden rules of optimizing network design process:

1)The decision to allocate volumes and markets to plants is an important decision in the overall tactical decision system for the firm. The decision to locate these plants in locations where it has decided to is an important network design decision, which has significant implication on the supply chain performance

1)Firms can use linear programming model to decide an optimal network design and operations Deciding optimal location of services in a model a) where consumers need to walk in everyday involves different considerations as opposed to a model b) where “ its corporate employees are located at one point and with c) where its manufacturing locations are located across the country

2)Network design involves large amount of data , converting large amount of data into meaningful structured data into insights

3)Global firms spreads out their risks by having their manufacturing plant as dispersed across geographically possible and keep their excess capacity in network as a hedge against uncertainty in markets and prices of finished products and raw material

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Comparison of Efficient and Responsive Supply Chain

  EFFICIENT SUPPLY  CHAIN                                            RESPONSIVE SUPPLY CHAIN

PRIMARY GOAL:  supply demand at a lower cost                        respond quickly to demand


PRODUCT DESIGN: maximum performance at minimum cost     creates modularity for product changes                                                                                                                            

PRICING STRATEGY: lower margins as price is a prime            higher  margin, price isn't a driver

MANUFACTURING: lower cost, high utilization                        flexible capacity to buffer unpredictability


INVENTORY ; minimize inventory to lower costs                        maintains buffer inventory
                                                                                         
                                                                                                                                                  

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The 5 Biggest Industry Vertical Markets for Predictive Analytics

The Industries with the highest use of Predictive Analytics

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Auditing Supply Change Delays and Disruption: Top 5 Findings

Global supply chain risk management infographic from Retigence Technologies Private Limited

HOW SUPPLY CHAIN RISKS IMPACT COMPANY BOTTOM LINE

A recent research report on the risks of supply chain shows us some startling statistics. Since most manufacturers outsources a fair amount of work to “ their suppliers and vendors” the chance of “ supply chain disruption, delays or external natural factors is always omnipresent .

 • However just 25% of a typical company’s end to end supply chain is being assessed for risk auditing The risk factor

 • 90% of respondents do not formally quantify risks when sourcing production • In a survey 45% firms indicated a looss of revenue due to supply chain distruption

• 14% of companies revenue loss on account of supply chain distruption exceded one million euros • Supply chain distruption caused shareholder returns to decline by 33-40% over a 3 year period

• Share prices  of companies that  experience delay and disruption in supply chain tended to be more volatile ( on average around 13.5% higher)

 • 58% of firms indicated that a loss of productivity as the main reasons for supply chain disruptions • while 11% firms believed that supply chain risks and delays lead to increase in cost of production

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Reviewing Supply Chain Conflicts: Manufacturer Vs Multi-brand Retail

 manufacturer vs multi-brand retail is one of the classic cases of supply chain conflicts.

Manufacturer vs multi-brand retail conflicts is one of the most classic cases of supply chain conflict, as the manufacturer will want the retailer to work with high service levels as to ensure availability of his product on the shelf. However, a multi-brand retailer across the world or any big departmental store would want to maintain a high product availability at the category level and not on a brand level.
If the cost of substitution of competing brands is not very high, the departmental store does not mind which brand” is available at the store as long as the category product are available. This model is valid for products that do not have a very high level of brand loyalty. For example “ Milk, Yoghurt, Cheese, Butter, jams, sauces “ which are mostly generic products”
In the above cases,  the  multi-brand retail chains would like to work on a lower service level as to keep his “overall cost low This substitution model, which the multi chains believe in, is in direct confrontation with the model the manufacturers believe in.  However for a single sourced item in a business to business environment, we don’t see the kind of conflicts we see in “ product categories that are more or less “commodities “.

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