Supply Chain Design

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.

Benefits

The optimization of the logistics and production networks provides the following benefits:

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The minimization of operative logistics and production costs combined with optimum investment decisions means you can save up to 15% of the total supply chain costs

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The improvement of customer service allows companies to react better to customers and competitors and support sales growth

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Improved planning results can be achieved through the simultaneous optimization of several locations with hundreds of products

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Flexible What-If analyses provide a better understanding of the effects which adding or removing locations and distribution centers has on the network as a whole

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Calculation and minimization of the CO2 emissions allow a sustainable supply chain strategy to be implemented

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The planning insecurity is assessed and the company is safeguarded against fluctuating demands, exchange rates or transport costs

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The reduction of planning effort and reaction time and the automation of routine activities reduce the planning costs by up to 50%

Functions

The ORCONOMY network optimization models can map the following aspects in particular:

Lieferkette Spedition

  • 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