Supply Chain Network Design

Discover how using marginal cost approach to reconfigure your supply chain can drastically increase your profitability!

Your Challenge

In today’s ever-changing environment, supply chain’s are under continuous pressure. Incremental improvements within the boundaries of the existing structure are not sufficient anymore to stay in the leading pack.  Your supply chain needs constant re-configuration and agility has become a condition for survival. However, such strategic changes are rarely obvious decisions and alternative supply chain designs are often numerous.

Therefore, as decision-maker, you don’t only need leadership and vision but also advanced analytical models to help you systematically evaluate all possible scenarios. N-SIDE has developed such optimization software for Strategic Network Design that can prove indispensable when facing such kind of questions:

  • How to consolidate multiple supply chains after a merger or an acquisition?
  • Is my industrial and logistic structure prepared to face economical cycles or new demand trends?
  • Where are my supply chain bottlenecks? How and where to invest (divest) to remove them and improve global network profitability?
  • How could I optimize and validate my annual/periodical budgets and easily build consistent production and distribution planning?
  • What is the best option to quickly react to dramatic changes in my environment (new competitor, FX rate variations, etc.)?
  • What are the potential impacts of regulatory changes (carbon footprint penalties, tax laws, etc.)? …

Our Solution:

 

NODE features a tailor-made integrated model that faithfully reproduces your entire supply chain, from production unit to customer.  It enables you to take the strategic decisions that maximize your profit and minimize your risks.

 

What makes us different?

  • Custom software: We believe that, in order to properly optimize industrial decisions, models must be developed to fit your process, not the opposite. N-SIDE consultants will then model the specifics of your process taking into account your particular constraints (physical flows, by-products, equipment specifics…) based on an existing but open framework.

 

  • Flexible and powerful management tool: We designed our application to be used by top managers, not mathematicians or IT specialists. Therefore, the User Interface is tailored to your needs: reports are Excel-based to ensure high flexibility and low learning curve. Simulations are run offline (even if they use other system’s data) to let you test various scenarios in strict confidentiality. Finally, advanced reporting and drill-down tools enable you to understand and communicate the factual items behind each suggested decisions

.NODE Charts summary

NODE Charts by scenarios

 

  • Quick implementation, fast results: Between 60 to ninety days, this is the time needed for our consultants to understand the specifics of your business, develop our models accordingly and deliver a software ready to use. A quick training and comprehensive support are also provided to empower you as an end-user. Finally, advanced Operations Research techniques are used to keep short response time (between seconds and a few minutes): you can then run our model live during meetings to test many ideas of scenarios.

 

Our technology

Our software features advanced mathematical models (Mixed Integer Programming) and high-end solvers in order to handle and leverage the actual level of complexity of your entire supply-chain.

Your real life constraint translates into a set of equations to maximize the gross margin of your supply chain by optimizing the following decision levers (i.e. model variables):

  • Network design:
    - Plant (or subsets such as lines) opening or closure
    - Warehouses opening or closure
    - Routes & transportation contract definition
  • Production dispatch:
    - Plant production level
    - Warehouses transit mass, stock variations
    - Flows on each route (approaches, lanes) and choices of transportation means

  • Profitability management:
    - Share of local demands satisfied (can be forced)

 

NODE blends detailed production and flow models with a comprehensive modeling of all revenues and costs generated all along the supply-chain. NODE specially focuses on identifying and modeling the actual marginal production cost function of your process (whatever its shape, linear or not) since marginal reasoning is the fundament of any valid production decision.

 

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