Toshiba Uses Network Design to Evaluate Options

Toshiba recently presented at the Manufacturing Leadership Summit.  They gave a talk on ”Using SCM to Create Competitive Advantage.”  (SCM = Supply Chain Management).

In the talk, they mentioned that they used network design technology to evaluate different options.  We often see this in a project.  A company many have many different ideas for changing their supply chain.  It is important to test those ideas and determine what impacts they will have on the overall supply chain. For example, if a firm can add more facilities to better serve customers, it is important to know if the transportation costs will go up by $500,000 or $5,000,000.  The importance of service may change as a result of this.

In the talk, they mentioned that their new strategies helped in the following ways:

  • The cost per shipment decreased by more than 12%
  • Obsolescence reduced by more than 40%
  • Missed service calls reduced by more than 16%