Network Design in supply Chain

 The organization of networks in supply chains is one of the most important parts of the logistics system. The right supply chain design affects all further work. It is important that it is reliable, cost-effective and stable, because sometimes you have to work under conditions of uncertain demand. How to properly organize network design in the supply chain and what should be used for this?

What do I need to know about supply chain design?

First of all, there are many internal and external factors to consider. After all, they can make the situation completely unpredictable. Not in the last place is also such a factor as product specificity.

Planning, design and management are closely linked in supply chains. That means you must first make the right decision, optimize the structure of your supply chain distribution channels and manage them competently.

The process of supply chain design is continuous. After all, a major supply chain goal cannot be designed once and adhered to all the time. Businesses will be successful if they actively embrace new challenges and opportunities, which means reorganizing their work and making decisions quickly.

What does supply chain design involve?

  • Finding the best location for the location of new facilities. For example, production sites, distribution centers and warehouses.

  • Designating trade flows between sites. Constructing precise, interconnected optimal links.

  • Optimize costs. Demand and supply must be taken into account.

The benefits of network planning in supply chains

  •  Growth and development of business in the future. Increase customer loyalty.

  • Control and tracking of the cost of operations. Balancing costs and increasing revenues.

  • Optimize operations and rational use of resources.

  • Competitive advantage for business. Not every company can create a great supply chain network.

All this points to the fact that this issue deserves attention and will be useful for companies that are engaged in transportation.

How does supply chain planning work?

The most common way to create supply chains is with spreadsheets. Of course, it's quite simple and easy to work with them. But to work accurately, today's realities require more innovative tools for analytics and forecasting.

And today, special software already exists. This solution can be called more effective, if we compare it with spreadsheets.

The software can be used both to create new supply chains and to optimize existing ones. It provides all the necessary data for a detailed analysis of the situation.

Designing a supply chain network is no easy task. It requires a comprehensive approach, detailed analysis and planning. It's important to consider many factors and not to forget the specifications of the cargo itself. But with today's technology, supply chain network design can be handled by many companies. This will make it possible to become leaders in their field in the future.