Supply Chain Network Optimization: Key to Boost Supply Chain Results

Jul 8, 2019

price optimization

What is Supply Chain Network Optimization?

Supply chain network optimization is an advanced analytics approach that aims to optimize supply chain functions by offering a holistic view of the end-to-end supply chain operations. Companies can develop powerful network optimization capabilities to align the supply chain network to long-term business goals and reduce costs and maximize output with the help of supply chain network optimization. Also, it helps in improving service levels and reducing working capital across the end-to-end distribution network.

At Quantzig, we aim at developing dynamic supply chain network optimization capabilities that help businesses to realize the true potential of their existing supply chain networks. Additionally, our supply chain analytics solutions help in focusing on reducing complexity, downtime, and cost through automation, orchestration, analysis, and technology investments.

By optimizing the efficiency and capability of your network management systems, we ensure that your infrastructure investments provide maximum returns. Get in touch with our experts to know more.

Supply Chain Network Optimization Best Practices

Drive Clarity of Supply Chain Needs

For any business, it is important to have 360-degree visibility into overall supply chain network design exercise. Each part of the supply chain network optimization hierarchy has its own needs and requirements. A top-down approach can help if a comprehensive supply chain network design exercise is contemplated. This approach offers a long-term framework in a time-phased manner, which acts as an input to tactical planning. Tactical planning decisions can further help in structural and operational policy decisions in a given supply chain model framework.

Adopt a Two-Stage Optimization Approach

Companies should adopt a two-stage approach for supply chain network optimization and design exercise. These two approaches are:

Funnel Approach: Companies usually work with several products, processes and facilities to achieve the designed future target. This results in the creation of multiple scenarios. To achieve results faster, companies need to limit the number of scenarios to enable optimization. This can be achieved by using the KPIs set for a strategic network optimization exercise, such as investment cost, cost of ownership, ROI, etc.

Sensitivity analysis: The second approach revolves around leveraging what-if analysis before finalizing the strategic recommendations, through multiple scenario analysis based on possible changes in demand, cost inflation,  deflation, and fiscal policy.


Our supply chain network optimization solutions portfolio is committed to ensuring that your network meets the supply chain requirements. Request a FREE demo now!


Frequency of a Supply Chain Optimization Exercise

Companies need to review their key metrics and goals against existing supply chain networks periodically. Since supply-side capabilities and demand environment are dynamic so doing an annual review on key operating needs like inventory management can offer visibility into network performance. Also, it can help companies in translating network data into actionable business insights, improving their network management capabilities.

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