How often do you look at your supply chain and ask the question is this Optimized?
Supply chain network design is not something to do every 5 years (anymore). Your network changes yearly, quarterly, even weekly. Supply chain network optimization is the process of looking ahead every month or even every week and exploiting opportunities to cut your costs and deliver faster. Supply Chain Leaders know their worlds are evolving and changing quickly. Their challenge is melding network optimization opportunities into their planning process.
– What should my people start doing today?
– What should my people stop doing today?
– Where should we be looking for opportunities tomorrow?
If you can do this monthly or weekly, you are effectively engaging in Network Optimization. Network optimization allows you to pursue a path of aggressive improvement and optimum operational efficiency. Much like a martial artist conserves energy and each move leads to the next, the best way to manage a supply chain is to evolve it in such a way that it operates at peak efficiency today, but each move and change is choreographed to move it down the next step.
If this is not clear, think of it this way, Network Optimization is the exact opposite of an SAP implementation (2–3 years of installation and roll out before you can start to recoup the investment). Network Optimization is a way to:
- Follow a defined roadmap to your overall strategic optimization.
- Recognize many small, tactical opportunities to gain cost and service time efficiencies today, next week, and next month.
- And, if done right, will feed back to the strategic vision and keep that roadmap current and meaningful.
Logility facilitates network optimization by providing a simple and fast platform to analyze changes small and large. Before Logility, organizations would embark on a 3–9-month project to model and optimize their supply chain to look at a major (Strategic) change. Small changes to customer dispositions and changes in capacity can be made part of the overall network model.
Supply chain Network optimization is unlike previous design tools in that your people can use it without extensive training. It can be configured to your business, data, and your specific optimization challenges.
Use Logility to do your network optimization for:
- Changes in customer dispositions
- Inventory re-positioning and floating constraints
- On-boarding new suppliers or partners and evolving along a long-term road map
See an example of supply chain network optimization in this 90 second video: