By Haresh Gopalan and Desmond TorkornooRead More
OPS Rules Blog: Insights into Supply Chain and Operations Strategy
By Dinesh Natarajan and Sumeet MahajanRead More
Tags: Network Design
Tags: Supply Chain Strategy
We often talk about end to end optimization – the idea that decisions should be made across the supplychain and not in silos. This approach is proven to improve results and ability to leverage resources effectively across the supply chain. In fact, the whole idea of supply chain management is to oversee the entire process starting from raw materials and ending in customer delivery.Read More
“The things we fear most in organizations -- fluctuations, disturbances, imbalances”, part of a famous quote, which I promise to complete later, summarizes the very things that keep most supply chain and operations executives awake at night. The difficulty lies in better predicting these imbalances, and effectively planning to prepare for them. The challenge of optimal deployment of capacity and inventory – what, where, when and how much – will determine how well you deliver value to your shareholders.
Architects of global supply chains, traditionally, have focused on strategies that were hypothesized on economies of scale and availability of low cost labor in countries like Brazil, Russia, India and China. But, lately, the surge in demand for improved service, the aggressive competition and the recognition of global uncertainty – uncertainty stimulated by changing labor conditions, extremely volatile oil prices, natural disasters and a spate of other geo-political factors – have made everyone rethink their manufacturing and distribution strategies. Leading global supply chains are being redesigned for not only scalability, but also for flexibility, as we described in leveraging your supply chain as a hedge against uncertainty. A very important part of this redesign process is sensitivity analysis, i.e., testing your network for robustness against controllable as well as uncontrollable factors.