By Milena Janjevic, Jarrod Goentzel and Matthias Winkenbach ·
January 14, 2020
In light of the dramatic changes that supply chains have undergone over the last 20 years, companies need new, innovative approaches to supply chain design that shift the focus from cost-minimization toward value creation. And the design process must mature to capture the complexity, volatility and uncertainty of the competitive environment in which modern supply chains operate.
These challenges can be met with the support of advanced methods that combine the power of analytical models with the implicit knowledge of expert human-decision makers. The new approach improves decision-making transparency, enriches design solutions and reflects the real-life challenges that companies now face.
A new environment
The field of supply chain design is rooted in conventions developed through studies carried out in the 1990s. These studies primarily focused on the physical configuration of supply chains, such as facility location and customer allocation decisions. Supply chains were designed to minimize costs such as those associated with facilities, warehousing and transportation. Also, in the conventional approach, the design of a sup¬ply chain is typically reviewed once every few years; these exercises are rarely linked with tactical planning decisions.
By Milena Janjevic, Jarrod Goentzel and Matthias Winkenbach ·
January 14, 2020
In light of the dramatic changes that supply chains have undergone over the last 20 years, companies need new, innovative approaches to supply chain design that shift the focus from cost-minimization toward value creation. And the design process must mature to capture the complexity, volatility and uncertainty of the competitive environment in which modern supply chains operate.
These challenges can be met with the support of advanced methods that combine the power of analytical models with the implicit knowledge of expert human-decision makers. The new approach improves decision-making transparency, enriches design solutions and reflects the real-life challenges that companies now face.
A new environment
The field of supply chain design is rooted in conventions developed through studies carried out in the 1990s. These studies primarily focused on the physical configuration of supply chains, such as facility location and customer allocation decisions. Supply chains were designed to minimize costs such as those associated with facilities, warehousing and transportation. Also, in the conventional approach, the design of a sup¬ply chain is typically reviewed once every few years; these exercises are rarely linked with tactical planning decisions.
January 14, 2020
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