The Power of Modern Supply Chain Modeling
The larger and more complex a supply chain becomes, the greater its potential to under-perform.
Supply chains typically grow in increments to meet the needs of a growing business—whether it is delivering the next product line, expanding into a new territory or entering a new market segment. As a result, a company’s global footprint is in large part shaped by many small decisions rather than the pursuit of one overarching ideal.
In addition, the demands on supply chains are dynamic and uncertain. Relentless changes in customer requirements and supplier capabilities, unanticipated competitive pressures, ever shifting business and seasonal cycles and global marketplace fluctuations such as currency exchange rates can rapidly erode supply chain performance if companies cannot anticipate and adapt.
Adaptation becomes even more challenging when the supply chain grows to the point that no one has a clear end-to-end view of operations. It may even become impossible to identify many of the most significant sources of under-performance, let alone address them. The result? Large supply chains often bleed millions of dollars of operating profit and tie up millions more in assets. However, supply chain modeling can help stanch this flow of losses.
This complete article is available to subscribers
only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access. |
Latest News
Are Your Data Visualizations Readable by Everyone? Supply Chains Facing New Pressures as Companies Seek Cost Savings February retail sales see annual and sequential gains, reports Commerce and NRF A Hoarding Explanation for the Post-COVID Inflation for Goods Digital Approaches, End-to-End Thinking Help Supply Chains Evolve More NewsLatest Resource
Vendor Evaluation Questionnaire for RFPs Don't miss out on the perfect Yard and Dock management software for your warehouse operations. Save time and stress with this handy Toolkit.All Resources
Download Article PDF |
Supply chains typically grow in increments to meet the needs of a growing business—whether it is delivering the next product line, expanding into a new territory or entering a new market segment. As a result, a company’s global footprint is in large part shaped by many small decisions rather than the pursuit of one overarching ideal.
In addition, the demands on supply chains are dynamic and uncertain. Relentless changes in customer requirements and supplier capabilities, unanticipated competitive pressures, ever shifting business and seasonal cycles and global marketplace fluctuations such as currency exchange rates can rapidly erode supply chain performance if companies cannot anticipate and adapt.
Adaptation becomes even more challenging when the supply chain grows to the point that no one has a clear end-to-end view of operations. It may even become impossible to identify many of the most significant sources of under-performance, let alone address them. The result? Large supply chains often bleed millions of dollars of operating profit and tie up millions more in assets. However, supply chain modeling can help stanch this flow of losses.
SUBSCRIBERS: Click here to download PDF of the full article. |
Subscribe to Supply Chain Management Review Magazine!
Subscribe today. Don't Miss Out!Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
It’s high time to go beyond visibility Driving supply chain flexibility in an uncertain and volatile world View More From this Issue