0000004936 00000 n [10], An uncertainty can be categorised as 'exogenous' when the origin of the risk is external to the supply-chain network. 0000004857 00000 n Changing the distribution network design affects the following supply chain costs: • Inventories • Transportation • Facilities and handling • Information As the number of facilities in a supply chain increases, the inventory and resulting inventory costs also increase as shown in Figure 4.2. Emerging technologies and standards such as the RFID and the GS1 Global Standards are now making it possible to automate these Supply Chain Networks in a real time manner making them more efficient than the simple supply chain of the past. 0000004388 00000 n 0000002250 00000 n Warehouse (Distribution Centre) size, location, resources, costs…, Improved understanding of customer service needs and options, Appropriate balance of storage, inventory and transport costs, Graphical mapping of customer demand and density, Access to leading distribution network modeling tools and methods, Also, this type of work is often linked with customer profitability analysis, product profitability analysis and Cost To Serve (CTS) audits. Specialist Supply Chain network modeling software is used to allow cost and service optimisation of the network to be established. Q���(��Փ�������'���O��=��/�6�[email protected]�2h. You can see some of the simple but useful graphic outputs at Mapping Products. [1], Businesses are often part of a larger network of organisations, a supply-chain network can be used to highlight interactions between organisations; they can also be used to show the flow of information and materials across organisations. If these issues sound familiar, we can probably share some solutions with you. Due to rapid technological advancement, organisations with a basic supply chain can develop this chain into a more complex structure involving a higher level of interdependence and connectivity between more organisations, this constitutes a supply-chain network. This particular network design addresses logistical issues such as collection, processing and recycling of end-of-life goods. [8] Through this, organisations can support goods from production to disposal creating a 'closed-loop system'. We’ll be happy to share our experience. A company has a very limited ability to prevent exogenous uncertainty. Are your inventory stocking locations not in the ideal place to best serve your customers? Our distribution strategy consultants can determine the optimal Supply Chain or Distribution network to satisfy customer demand at specified service levels and at the lowest cost. Distribution networks, or indeed whole Supply Chains can easily be modeled. The design should also include details of the number and location of facilities: plants, warehouses, and supplier base. Of our 30 professional staff, we currently have 9 who are trained and skilled in this type of supply chain modeling project work. Therefore, it can be said that a SCN design is the combination of nodes with capability and capacity, connected by lanes to help products move between facilities[6], There is no definitive way to design a SCN as the network footprint, the capability and capacity, and product flow—all intertwine and are interdependent. Logistics Bureau’s consultants have developed a ‘fast track’ network modeling approach for those companies that merely want to quickly test a range of distribution network options at a high level, or do not have the ability to gather detailed cost data on their own networks at this time. Network Modeling Approach. 'Discrete' events refer to infrequent events that could disrupt the supply-chain process, such as natural disasters. Physical locations included in a supply-chain network can be manufacturing plants, storage warehouses, carrier crossdocks, major distribution centres, ports, intermodal terminals whether owned by a company, suppliers, a transport carrier, a third-party logistics provider, a retail store or an end customer. This approach: Key #4 Network DesignHere is what you need to know, Download Free Distribution Network Design Chapter, Copyright © 2020 Logistics Bureau Pty Ltd. SEO by Online Marketing Whiz. �/e� �,��o+X�C��1{�p�$��e����e6K�|���,Y,,�� �/���lZ��R��`�2�J��ը��m��̷Y��(�z�.�y�ᘑ�dI5#�����%��3

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