Supply Chain Network Design

Process:

Long Term Planning involves decisions that could have a long term strategic impact, significant capital outlay typically over a longer time horizon (1-5 years) and also potentially change the structure and size of the supply chain. It attempts to answer questions such as determining the optimal location and capacity expansion plan for production and stocking facilities in a supply chain in order to meet anticipated growth targets in various markets and products. Long Term Planning helps you determine the optimal plan for consolidating the existing network of warehouses in response to developments such as a new tax regime (for example introduction of GST). Long Term Planning provides inputs for decisions such as determining which warehouses should be closed down and in what order; the timeframe, location and quantum of capacity that needs to be added; the optimal structure of the warehouse for instance, should it be Hub and Spoke or Meshed; identifying the optimal plan for expansion or consolidation of the supplier base.

Solution:

Our solution includes a parametric MILP optimization model to generate and compare various scenarios, that helps management of a large or medium firm to undertake strategic planning for design or expansion or consolidation of network of facilities in an optimal way to reduce end to end supply chain costs and improve cycle service level.

GST:

GST, an acronym for Goods and Services Tax, is based on the principle of value added tax and is set to replace all indirect taxes levied on goods and services by the Central and State Governments. It is a destination based tax levied at the point of consumption of goods or services by the end consumer. GST offers a great opportunity to redesign your Supply Chain. With the introduction of GST, companies can setup their warehouses to optimize their costs and best service the customers thereby improving the servicing levels. IMBS has the necessary tools and experience to facilitate the redesign in a rapid, cost effective, comprehensive and intelligent manner.

Note on GST

Network Design for Large Confectionery Company

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