Strategic network planning
Here are some of the questions a company asks itself when determining its supply chain strategy. Up to 80% of the later operative logistics and production costs are determined at this early stage.
- Which product is produced at which location?
- What capacity should a new facility or production line have?
- Which distribution locations offer the optimum balance between fixed costs and transport costs?
- Which location supplies which market?
- How do I react if the demand in Asia rises?
ORCONOMY supports companies in the strategic planning of supply chains using quantitative methods. This means that important investment decisions are made in an optimum way. On the basis of our development system for optimization solutions OR|Framework, we offer solutions tailor-made for your planning situation.
The optimization of the logistics and production networks provides the following benefits:
The ORCONOMY network optimization models can map the following aspects in particular:
- Location decisions
- Capacity investments in equipment and machinery
- The decision as to which product is to be produced at which location
- The selection of suppliers, make-or-buy decisions, sourcing strategies
- Number and location of warehouses, distribution centers und logistics hubs
- The decision as to which location is to supply which market
- Optimum production and transport quantities in the network
- Evaluation of investments in compliance with controlling
- Taxes, customs duties, exchange rates
- Planning insecurities, for example with regard to demand, exchange rates and transport costs
- Customer service and reaction times
- Simulation, optimization, analysis
- Complex multistage and multimodal logistics networks