Last week, I had the opportunity to participate in a panel discuss at the Journal of Commerce’s Inland Ports conference in Oak Brook, IL. The panel was moderated by Adam Roth of NAI Global Logistics and included Jeff Starecheski of Sears Holdings and Brent Lindstrom of Caterpillar Logistics Services.
In a previous post, we shared an article on seven reasons why you need to do a supply chain network design study.
On this panel, one of the questions that received a lot of attention was about how frequently you should do a study. Some people tend to think that you need to do a study once every 4-5 years.
Interestingly, the consensus on the panel was that firms were doing major studies on a 2-year cycle with minor studies done on an ongoing basis. Now, some investments are expected to last 10 years so not everything is open within a 2-year window, but firms find too much savings to ignore the structure of the supply chain. There is no reason to wait five years for the supply chain to get out of sync.