In the 2009 annual CSCMP conference, Mars and Wrigley spoke with IBM about network design.
The talk was covered by a post from IBM’s blog site and one from Bob Ferrari’s Supply Chain Matters.
The talk did a nice job of highlighting the value of network design. They spoke about $10M in savings just from the initial models.
Of the points mentioned by Supply Chain Matters, the following helps highlights points from the book:
“When modeling scenarios were completed, combined management was in a better position to make more informed decisions regarding warehouse synergies, potential common systems, or customer shipment consolidation. Additional insights were also gained regarding potential impacts of an increased cost of energy, or reduction of overall carbon footprint.”
This is an important part of network design: running multiple scenarios to help the management team make a better decision. Since decisions are still made with uncertainty (what will happen to the price of oil? to demand?) and strategic considerations (what is important the Mars and Wrigley brands), the modeling can better help quantify alternatives.
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