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Strategic Network Design

Be it your production-distribution network or supply-delivery network, your supply chain infrastructure has to move in lockstep with your current business strategy. We are here to help you meet that challenge.

DEFINITION

Strategic Network Design is a project with a quantitative supply chain model to align the supply chain infrastructure  (production-distribution network or supply-delivery network) with customer requirements and the business strategy, and optimize the infrastructure based on Total Cost to Serve.

What Can You Achieve With Solvoyo's Strategic Network Design Solution?

1. Align your supply chain infrastructure with current business strategy

Every company needs to have a good answer to the following strategic supply chain infrastructure decisions:

  • What is the optimal number of facilities in my production-distribution network?
  • Are they located optimally based on your customer service targets? 
  • Do they have the right size to serve your needs?

To answer such questions, Solvoyo offers you a digital twin of your supply chain network with the most advanced optimization technology and the most scalable what-if scenario evaluation platform.

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By evaluating and rationalizing our North American network, we substantiated the belief that we could provide improved service at lower costs through redesigning our network. This project [with Solvoyo] succeeded in shifting our “inventory-centric” perspective to one of “total-cost optimization.” We have since consolidated our depots in North America leading to significant infrastructure cost savings as well as a sustained inventory reduction of $5 Million.

Cassio Conceicao
Vice President, Global Services
Applied Materials

2. Deploy your inventory in the right place in the right form

Inventory investment is one of the most important tactical decisions that influence your customer service strategy: 

  • Does my company have a defined customer service strategy differentiated by channel?
  • What is the optimum inventory investment to execute my customer service strategy? 
  • Am I keeping inventory in the right locations?
  • How much should I buy and how much should I make? What are profitable outsourcing scenarios?
  • As a manufacturer, how much investment should I make in materials inventory versus my finished goods?  

Solvoyo offers you the Multi-echelon Inventory Optimization capability to optimize your inventory investment to execute your service level strategy throughout your network, including inventory targets for your suppliers.

3. Maintain a profitable portfolio of products, services and customers

At the end of the day, all enterprises want to make enough profit to grow or remain competitive in the market. That target largely depends on the strategic and tactical choices on the product, service and customer portfolio.   

  • What products should I produce or procure? 
  • What is the profit contribution of your products? Customer base?
  • What is the quantitative basis to modify (add/delete) my product or customer portfolio?  
  • What are my profitable options to outsource my internal supply chain services such as warehousing or fulfillment or distribution or transportation?

Solvoyo offers you the ability to build a high-fidelity digital twin and answer these important questions using a Total Profit model under such objectives as Maximize Profit, Minimize Total Cost, Maximize Service or a combination of these objectives using Goal Programming. 

4. Understand the carbon footprint consequences of your choices

Global warming is undeniably real and its number one cause is carbon emissions. Many states in the US and many countries in the developed world are imposing guidelines on carbon emissions while the customers increasingly see a value differentiation on environmentally sensitive products or service offerings. Supply chain decisions have a direct effect on the carbon footprint:   

  • What is my total carbon footprint in supply, production, transportation and warehousing operations? 
  • What is the optimal balance between carbon footprint versus cost efficiency?

Solvoyo can build a digital twin of your supply chain and easily process known carbon footprint calculators to create a baseline for your carbon footprint. Furthermore, you can evaluate the trade-offs between minimal carbon emission and minimal cost options. 

Improved Business Outcomes

Using our Strategic Network Design platform, our customers experience immediate and measurable business value with us and have typically seen powerful results in 3-6 months.

  • Understand your network trade-offs using total cost to serve
  • Identify cost savings and service improvement opportunities
  • Have a quantitative basis for choices and actions
  • Mitigate the risk of large investments
  • Measure carbon footprint across your network
  • Collaborate across the organization using one view of data
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Inventory Cost Savings
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Logistics Costs Savings
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Availability Increase
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Total Cost to Serve Savings

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CONCURRENT OPTIMIZATION

All the solutions you need.
Under one platform.

Our platform concurrently plans and optimizes orders, inventory, and transportation in a holistic approach that’s far more effective than attempting to optimize each discretely. Solvoyo provides its solutions in one model across strategic, tactical, and operational time horizons.

CASE STUDY

Major Home Improvement Retailer

Concurrent Planning of Network Inventory, Fulfillment and Transportation

FLYER

Automated Decision-Making for CPG Companies

End-to-End Supply Chain Planning & Analytics

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