Network Optimization - Finding the Optimal Network
Originally published: 02/02/2023 11:14
Last version published: 10/03/2023 08:45
Publication number: ELQ-46242-2
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Network Optimization - Finding the Optimal Network

This toolkit is aimed at helping you identify the optimal sourcing location for customers according to distance.

A supply chain network can also be known as a “footprint.” In short, where are your locations, your suppliers, customers and how do they interact with each other? A healthy organization should be asking themselves this question regularly because the variables impacting whether a footprint is working well changes over time. Variables like site leases, labor costs, transportation, suppliers and more can all impact where your own footprint should exist. Potential questions from leadership that this tool kit will help answer are: Where are customers sourcing from? Are customers sourcing from the closest locations? If not, why? What impact on time or service does that have? How much does it cost us to not ship from the closest location? Are there sites that are handling more volume than they should? Are there sites that should be handling more volume? In this document we are going to take a step by step look at evaluating a network and measuring how well it is working. To do this we will look at both the current state as well as the optimal state.  This toolkit comes equiped with detailed maps and a way to present and demonstrate the impact of change to your organziation using historical data.

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