System design is an essential step towards a supply chain that is more agile, efficient and effective. System design looks beyond incremental improvements, examining all supply chain components and how they interact. Modeling is one tool that can be used as part of system design to help stakeholders understand an existing system and identify inefficiencies. One key finding from the model is that health facility staff spend more thanhours per year away from other health care activities to pick up vaccines.
Most business units or functional areas within a company are impacted by a network design project.
When designing a supply chain the following steps must be followed: Once the path forward is determined and the design approach has been completed correctly, the business will reap many significant benefits. What Creates Real Economic Value?
Business and operations strategy - the formulation of strategies that drive investment, operations, and competitive positioning - is where all value begins. There are five strategic questions that need to be answered: What business is the CPG company in and why?
How should value be added to the business? What are the target markets? What are the products and why will customers buy from the CPG company? What capabilities are needed to assure that the company adds value and differentiates?
Most companies develop strategies for target markets and products 3 and 4. Some at least consider 1 and 2. Few companies resolve 5 effectively.
This is generally because operations strategies are not developed or implemented with the same scenario plan or rigor that is given to the more often seemingly interesting issues of markets and products. The alignment of business and operations strategies is often weak or non-existent.
Mission and vision statements, plans, goals, objectives, and performance measures while important for driving execution, most often do not ensure that capabilities will be built for scenarios from the business strategies.
Therefore, companies do not always have carefully developed alternatives for customer demand, new channels, competition, supply risks, and product development. Achieving clear and sustained alignment between operations execution and the plans derived from business strategies is challenging. They are beginning to understand that supply chains are about more than logistics regarding the buying and selling of goods, they are about competitive differentiation and profitable business growth.
Log in to download this paper.Preparing Supply Chains for the Green Future.
Understanding Cap and Trade and Carbon Taxes: Vendor Compliance Is Green. Vendor Compliance Optimization is key to building a truly Green Supply Chain.
UPS Supply Chain Solutions has resources to manage every aspect of global supply chains, including logistics, distribution, transportation, LTL, air freight, ocean shipping, customs brokerage and more. The Supply Chain Authority is made up of a team of experts working across Port functions – operations and terminals, commercial and economic development, information technology – to provide a customer-centric process focused on understanding individual companies’ unique logistics challenges.
Supply Chain Systems helps consumer goods companies to build high-performance supply chains. We optimize operations, assets and management in all areas, using .
Supply Chain Digest is the industry's best publication and web site for supply chain management and logistics practioners to find information, news, insight, education, opinion and tools. We cover supply chain, logistics management, distribution, RFID, material handling, transportation, supply chain software, manufacturing, supply chain strategy and much more.
Learn how to design and optimize the physical, financial, and information flows of a supply chain to enhance business performance – part of the MITx MicroMasters Credential in Supply Chain .