Create Optimal Plan of Investment in Production, Storage, and Retail Facilities for Revenue Growth
What It Does:
Create optimal supply chain network – locations and capacities of warehouses, channel partners, plants, transportations modes and links, and supplier facilities – in order to meet future targets for revenue growth, market expansion and diversification, profitability, and carbon neutrality
Achieve or exceed growth targets in the most profitable manner subject to meeting customer serviceability targets, opportunities and limitations for investing in new facilities and in expanding existing facilities for logistics and production in a multi-tiered supply chain network
Recommend most appropriate supply chain network structures for different product-market categories, including the mix of centralization and decentralization in inventory storage and production facilities, extent of ‘pull’ and ‘push’ supply chains, and placement of push-pull decoupling boundary
Run large scale mixed-integer linear programming model with millions of variables in quick time
Facilitate ‘what-if’ analysis with multiple scenarios, including greenfield and brownfield network designs
Validate input data, resolve infeasibilities, and display violations of demand, serviceability, capacity and other constraints
Report performance metrics such as contribution margin (EBIDTA), return on investment, sales revenue, demand fulfillment rate, cost-to-serve, utilization of production and logistics assets
Align sales and marketing, logistics, production, and procurement teams with common business objectives and facilitate inter-functional collaboration