Today, the sheer need to decrease costs continuously and the fiercely competitive global market place has forced best-in-class CPG companies to globalize their operations by developing production and distribution centers across multiple geographies. By leveraging the lower costs of production, the companies are faced with the task of optimizing their entire supply chain – in short-term as well as longer term.
For the immediate term, Supply Network Planning Optimizer is a comprehensive planner which accounts for the overall multi-level supply chain objectives and constraints from Suppliers to Factories to Packing Sites to Customers. It optimizes the product mix for selling and production. It generates weekly, monthly or yearly production requirements for all the factories and suppliers in the whole chain to meet Financial Objectives. The optimizer considers the ‘Total Cost’ instead of only logistics costs as is prevalent with many optimization packages. It helps CPG companies deliver goods to the customers at the lowest cost and maximize capacity utilization.
The Supply Chain Network Design / Redesign service determines the appropriate supply chain structure for distribution of goods, finds the optimal number/location of distribution center along with linkages of product movement and transportation mode on each lane. The proprietary Optimizer takes into consideration operational constraints like transportation policies, full truck load dispatches, seasonality, minimum or maximum flow on a lane, all linear and non-linear costs, volume discounts and inventory costs before recommending an adaptive supply network. The optimizer can be utilized to analyze your existing network whenever there is a major change in the above factors to maintain it in an efficient state.
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