Supply chain modelling using world leading software
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Project Process
We are careful to follow a logical process so that results are easily understood and the solution is practical and acceptable. Although every project is unique, a generic process for a strategic network study is:
The base case is an important first step in a project, providing the foundations for a robust analysis. After the volume and cost data has been collected, a model of the existing network is produced. The current flows can be viewed in Network Designer and any flaws in the data will be revealed at an early stage. The model should produce costs that can be validated against KPIs and management accounts before proceeding to the next stage.
Base Case
Improved Base Case
Generate Options
Extended Base Case
Evaluate Options
Supply chain modelling using world leading software
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Modelling different scenarios then produces costs and flows, enabling a detailed evaluation to be made. As part of this process sensitivity tests can be carried out, such as evaluating the impact of a major increase in fuel costs on the selected strategy. Finally, the migration path from the current position to the new strategy can be developed.
The extended base case projects the model forward in time, possibly over the next 3 to 5 years. Strategic network studies often involve major infrastructure or technology changes which take time to implement, so we need to factor in any significant changes that are expected. The extended base case can be run with the capacities of the current facilities to illustrate the bottlenecks in the supply chain and when they need to be overcome.
Options for scenarios need to be generated through data analysis and stakeholder discussions. A useful forum for this is a presentation of the base case in a workshop. Scenarios need to be debated with all relevant parts of the organisation to ensure all ideas are captured and to avoid going down any blind alleys.
We can then run an improved base case, which allows the model to optimise the flows within the current structure. This identifies any opportunities can that can be realised quickly, as well as providing the basis for comparing options where the model can open and close facilities. It is possible to run the improved base case at this point, or it can be done after the extended base case.
Base Case
Improved
Base Case
Generate Options
Extended
Base Case
Evaluate Options