TOWARDS BETTER SUSTAINABILITY AND PROFITABILITY
Supply Chain Management and Optimization
Significant competitive edge can be gained from sustainability, delivery quality, risk and cost holistic optimization.
Supply Chain Management and Optimization
Based on our experience typical savings of 10-20% in logistics costs are achieved when optimizing structure for the first time using a mathematical tool.
Benefits gained by Supply Chain Network Optimization:
- Releasing working capital tied in production and floating assets tied in supply chain
- Eliminating unnecessary transportation
- Developing operational models for distribution channel and customer service
- Control risks by planning a flexible network
- Ensuring investments in right areas
- Simulation (what-if scenarios) of changes in business-areas and costs
Content of a Project
Goal:
To find the most optimal supply chain network structure by total costs (investment and operative costs)
Implementation:
Customer’s production and distribution network is modelled and optimized using a cost-based tool (Oracle SNO).
Deliverables:
- Optimal structure of production and logistics
- Optimal capacities of production and logistics
- Production allocation by plant
- Cost effects
- Sensitivity of the solution
- Competitor analysis and benchmarking
- SC training program
- Material balance
- SC cost model
- Implementation
SNO - Production & Distribution Network Optimization Tool
Tool used in optimization
The characteristic for production mix optimization distribution network is very complex. It involves a great amount of variables which cannot be calculated without additional tools.
In the projects, PlaNet uses a cost-based optimization tool (Oracle Supply Network Optimization, SNO), which is the best tool in the market for defining cost optimal strategic network structure and tactical operational plan.
The tool used in the project does the optimization based on total costs and constraints.
The solver of the model is based on linear optimization
Joint Venture and Due Diligence Reports
Supply chain agility and ability change with evolving strategies is in essential role when securing future profitability and sustainability. PlaNet Logistics has multiple project experience in restructuring supply chains as a part of growth strategies.
We map and survey target market value chain possibilities as a part of variable starting points, such as mergers and acquisitions, alliances, and organic growth ventures.
Pre-Study includes following elements of service and supply chain development themes
- Alternative distribution channels
- Demand analysis
- Competitor supply chain benchmarking
- Target acquisition analyses
- Due Diligence studies
We create significant added value in M&A strategy implementation. Our role is to prepare for our client conclusions of SC consolidation synergies, risks assessment and conduct initial takeover plan. Our core strength is our wide knowledge from shop floor level operations up to the big End-to-end value chain picture. We simulate alternative scenarios based on cleanroom data and on our extensive PlaNet Logistics benchmark database.
We have operated for our clients as a change group coordinator in the takeover phase. In several cases we have helped our client realize SC synergies. We restructure supply chain network as well as production sites and warehouses product mixes and operations. Usually, growth is enabled by using current resources in optimal way. Sometimes the most lucrative growth solution can be implemented through Greenfield Master Plan where new technology is taken in use in perhaps in totally new facility.
We have organized resources for our clients in various stages of the takeover phase. Our role has included 3PL service supplier prospecting, forming request for proposal materials, contacting prospects, audits, proposal analysis, contract drafting, negotiations and deployment including quality and performance guarantees.
