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10 Areas to Focus on in Strategic Supply Chain Planning 2022

10 Areas to Focus on in Strategic Supply Chain Planning 2022

There are several parts to strategic supply chain planning, and it encompasses a wide range of use cases spanning network considerations.

A crucial challenge is determining the best supply chain strategy for the company for the next three to fifteen years, taking into account issues such as:

  • Demand in the future
  • Cycles of product life
  • Obsolescence of a product
  • Trends at the international and national levels
  • Competition

Answering these concerns necessitates a thorough investigation aided by optimization modeling, scenario analysis, and prescriptive analytics. Here are ten aspects of strategic supply chain planning to concentrate on.

1. Path of Flow

The word "flow path" refers to how products move from suppliers to buyers. Different channels, direct selling, selling through distributors, and distributing from your own warehouse infrastructure are just a few of the possibilities. River Logic's logistics modeling and optimization expertise can help you find the best flow pattern.

2. Location of the Warehouse

The number, size, and location of your warehousing facilities have a significant impact on your capacity to get product to end customers. Large, centralized warehouses may result in long delivery times, but tiny regional warehouses may have little stock, be costly, and be unable to respond to a spike in demand. River Logic's optimization capabilities can help you find the best warehouse layout.

3. Footprint of Manufacturing

The appropriate number and location of manufacturing facilities to meet demand at the lowest cost is referred to as the manufacturing footprint. This approach entails weighing a variety of tradeoffs and restrictions. 

You can model your current manufacturing footprint and test alternative scenarios using River Logic's digital twin technology to discover your optimal manufacturing footprint.

4. Transportation Planning

Determining how product gets from your facilities to the client is what transportation strategy is all about. It has to do with everything that occurs outside of your home. Determining delivery frequency, minimum shipping order size, fleet size, and how to serve faraway consumers are all important considerations. 

Typically, this study can be integrated with a flow channel or warehouse location strategy to determine an ideal strategy using the Enterprise Optimizer's intuitive modeling capabilities.

5. Cost-to-Serve

Cost-to-serve is a data-driven analysis method for calculating the profitability of customer service. It assists you in determining where you make the most money and identifying marginal opportunities. You may determine the genuine supplier margin to identify cost savings and profit potential with River Logic's CTS planner capabilities, which are embedded into River Logic's S&OP solutions.

6. Acquisitions and Mergers

Acquisitions and Mergers

While mergers and acquisitions can help firms grow, many of them fail to reach their full potential. The reasons vary, but one common theme is a lack of understanding of how the merging organizations function and how to efficiently simplify merged operations. 

Managers can use River Logic's stochastic modeling to simulate various scenarios and examine multiple merger and acquisition combinations. This method can be used to analyze whether a merger or acquisition will benefit the company and how to maximize merger paybacks.

7. Sourcing and Procurement

The process of setting sourcing policies, analyzing alternatives, lowering supply chain risk, and guaranteeing vendors' ability to deliver on time and with quality is referred to as strategic procurement. It's a complicated process with many options that can only be thoroughly examined and optimized using the optimization tools incorporated into a prescriptive analytics system.

8. Duties and Taxes

Import and export landed costs of products and materials are heavily influenced by taxes and tariffs. For example, Brexit has altered the taxation of commodities exported to Europe and the United Kingdom. Tariffs resulting from trade conflicts, such as the one between the United States and China, exacerbate the situation. 

As a result, the situation is fluid, with frequent and unexpected shifts. Prescriptive analytics modeling with Enterprise Optimizer's easy interface allows you to simulate these changes ahead of time, assess their ramifications, and adjust supply lines as needed.

9. Analysis and Mitigation of Risks

The process of identifying possible company hazards and implementing mitigation procedures is known as risk analysis and mitigation. It's an important part of strategic planning. This procedure can determine whether a company succeeds or fails. Risk mitigation studies based on predictive analytics allow you to explore alternatives more thoroughly and choose the optimal tactics.

10. Omnichannel

Retailing over numerous channels at the same time is referred to as omnichannel. On the one hand, you must maintain stores stocked with bulk deliveries while also delivering individual orders to customers around the country. 

Combining these disparate operations is challenging, and it necessitates the creation of novel supply chain solutions. Delivering orders from local retailers, setting up regional warehouses, or employing third parties to transport items are all possibilities. 

Prescriptive analytics' optimization capabilities are required to determine the best omnichannel supply chain architecture.

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