CGN Edge Blog

Establishing the Optimal Supply Chain

May 24, 2018 Posted by: CGN Team
Tom Rauch

By Tom Rauch, Kailas Mote & Vijay Venkatasamy

Are you finding the complexity of Supply Chain network configurations are stalling important decisions for your company?

Supply Chain Network Analysis designs and optimizes your supply chain. CGN Global (CGN) assists its clients creating a new supply chain, adding to the current supply chain or evaluating effectiveness to assess an existing one.

  • Improve strategic and tactical decision making with visibility into network design, sourcing and capacity.
  • Demonstrate the comparative value of “what-if” scenarios from a cost and service perspective.
  • Creating baseline models in order to be ready for major business changes, mergers & acquisitions, and other contingencies.
  • Greenfield analysis to determine distribution nodes based on customer locations, demand concentration, and service requirements.
  • Coach clients on a “Big Picture Thinking” approach to network design and help them transform their supply chain networks starting from ideation to implementation.
  • Determine optimal product distribution and inventory stocking strategies.

We have the ability to use validated modeling tools to design the end-to-end supply chain from your suppliers through delivery to customers and on to the consumer if needed. In the course of project work for CGN clients, we have been able to provide solutions such as:

  • Design a global manufacturing network while minimizing total supply chain costs and considering SKU complexity.
  • Establish a central European warehouse and stock finished goods pool and/or break bulk shipments to customers (usually distributors).
  • Centralizing service parts shipments for all parts that can be shipped via parcel (UPS).
  • Centralized inbound consolidation center serving 40 Distribution Centers (DCs) for items that were being shipped LTL.
  • Reassignment of ship to locations for commodity with three suppliers to achieve client goal of a 30-30-40% shares to the suppliers.
  • Seasonal realignment of suppliers to plant of food commodity to assure lowest inbound cost reflecting current growing regions.
  • Determine the optimal number of DCs to supply a national restaurant chain while assure balanced market share among distributors.
  • Reassignment of stores serviced by a DC when an earthquake hit the local DC.
  • Determine best location for nine different production lines using three plants (U.S., Europe, So. America).
  • The combining of two supply chain networks for similar companies after a merger.
  • China to North America shipping looking for the right export and import ports along with the alternative shipping lead times (days on water).
  • Optimized network for a client’s product family using greenfield analysis in order to meet availability targets in growing markets - Asia and South America.
  • Growth in emerging markets demanding expansion of manufacturing from a North America centric footprint to a global footprint to maintain market share.
  • Impact of network inventory and supply chain costs due to manufacturing plant relocation. 

CGN Global has partnered with external software and service providers including LLamasoft, the creator of Supply Chain Guru, to bring cutting edge supply chain analytics and decision support systems to aid decision making in network design and optimization.