There has been a lot of progress in breaking down silos in the supply chain and introducing processes such as sales and operations planning. There is also a better understanding of why optimizing on local activities such as production plants or transportation lanes may not benefit the entire supply chain. But the ability to optimize across the supply chain is not typically utilized on an ongoing basis in order to improve performance and reduce costs.
There are many advantages to modeling the entire supply chain in order to analyze the network and total costs. In addition, the ability to optimize inventory across the entire supply chain can lead to significant efficiencies and improved customer services. Combining this with understanding of the risks in the supply chain can create a robust solution that can serve the company as changes occur in the business and environment.