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Supply Chain Strategy

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Whilst ERP systems are able to provide a level of data analysis based on past performance, building and proving a business strategy capable of supporting future requirements and evolving market conditions requires a more sophisticated approach.

The advantage of building a “virtual supply chain” model is that the model can be continually evolved to grow with the business or revisited to test the effect of certain events. For example, a business may start by modelling its distribution network to establish the optimum number and location of warehouses, the optimum number and types of vehicles to support its customer base. The model can then be tested to see the effect of seasonal demand or promotions, the cost of adding new customers or sourcing produce from different suppliers. Multiple scenarios can be considered and their results stored and compared.

The benefit of simulation is that is can accurately represent event, by event processes with a multitude of potential outcomes that is not possible to accurately model otherwise. The results provide a greater level of business awareness regarding the interdependency of people, assets, space and their respect geographical positioning than other traditional planning tools.

To see how our CLASS and COST2SERV software can help you build a sophisticated and informed supply chain strategy, please click here…