what is Supply Chain Network Design.pptx

all about scnd

1. Supply chain network design BY : AAYUSH KATE YASH LOKHANDE SHIVAM INGAWALE ADITYA MHASKE ARYAN KONDE

2. INTRODUCTION Definition : Supply chain network design is the strategic planning process that determines the optimal number type, and location of facilities (like manufacturing plants and distribution centers), along with the flow of products, to efficiently and cost-effectively meet customer demands. It uses mathematical models and optimization software to balance costs, service levels, inventory, transportation, and risk, ensuring a well-orchestrated, resilient

3. Importance of SCND : Reduces operational costs : Optimal placement of warehouses, plants, and distribution centers reduces transportation and facility costs. Improves customer service levels : Faster delivery times through strategically located facilities. Supports scalability and flexibility : Enables rapid response to supply chain disruptions or shifts in global trade patterns. Enhances decision-making : Data-driven models help in evaluating trade-offs between service level and cost. Drives competitive advantage : Enables companies to outperform competitors through better service and lower costs.

4. Key Components of SCND : Suppliers : Source raw materials or components. Can be local or global Decisions: How many? Where located? Single vs. multiple sourcing? Manufacturing Facilities (Plants) : Convert raw materials into finished goods. Must consider capacity, proximity to suppliers/customers, and cost. Strategic decisions: Number of plants, locations, production capabilities. . Manufacturing Facilities (Plants) : Convert raw materials into finished goods. Must consider capacity, proximity to suppliers/customers, and cost. Strategic decisions: Number of plants, locations, production capabilities .

5. Retailers / Customers : End-point of the supply chain. Can be B2B (businesses) or B2C (consumers). Must ensure timely and accurate order fulfillment to maintain service levels. Transportation Links : Connect all components in the network. Involves selecting modes (road, rail, sea, air) and carriers. Trade-offs between speed, cost, and environmental impact .

6. SCND Process : Define Objectives & Constraints : Set clear goals (e.g., cost reduction, service level improvement) Identify constraints (budgets, lead times, regulations) 2.Data Collection & Validation: Gathering all relevant data from across the supply chain. 3.Modeling & Scenario Analysis : Build mathematical or simulation models to represent the supply chain 4.Optimization: Use tools to find the best network configuration

7. 5.Implementation : Establisment or restructure facilities, warehouses, Partner with logistics providers Continuous Evaluation :

8. Factors Affecting Network Design : Cost Factors : Transportation, facility, inventory Customer Service : Lead times, delivery performance Geography : Location of demand and supply Technology : Automation, information systems Regulations : Trade laws, taxes, duties

9. Types of Network Design Models : Strategic (Long-term): Facility location, capacity planning Tactical (Medium-term): Sourcing strategy, transportation mode Operational (Short-term): Shipment scheduling, inventory policies

10. Tools & Techniques : Linear & Integer Programming Simulation Models Geographic Information Systems (GIS) Network Optimization Software (e.g., Llamasoft , AnyLogistix )

11. Real-World Example : Example: Amazon Extensive fulfillment centers AI-driven location and inventory planning Optimization for same-day/next-day delivery (Include a simplified map or diagram of Amazon's network)

12. Challenges in SCND : Demand Uncertainty Supply Disruptions Sustainability Concerns Geopolitical Risks Evolving Customer Expectations

13. Sustainable Network Design : Green logistics Carbon footprint minimization Renewable energy in warehousing Ethical sourcing

14. Future Trends : AI and ML in network planning Digital twins for simulation Blockchain for traceability Autonomous delivery systems Resilient & agile supply chains

15. Conclusion : SCND is critical for supply chain efficiency and Responsiveness A well-designed network supports growth, customer satisfaction, and profitability Continuous improvement and adaptability are key