SUPPLY CHAIN NETWORK OPTIMIZATION

Instigators for Supply Chain Network Reconfiguration Back in the day, supply chain network optimization was a once-in-a few years project developing supply chain designs with five to ten-year lifespans. Over time, the instigators, pace, and stakes of change make supply chain network optimization a business-critical on-going process and competitive differentiator. Instigating forces for change in supply chain network configuration fall into x major categories including (1) demographics, consumerism, and retailing; (2) material and product changes; (3) key rates and indices; (4) business growth and decline; (5) supply chain security, safety, and compliance; (6) transportation marketplace; (7) supply chain infrastructure; (8) origin-destination and trade lane upheaval; (9) supply chain operating philosophy

1.

NEW PRODUCTS and PRODUCT CONFIGURATIONS a. Changing cube, weight, value mix b. Packaging modifications

7.

ORIGIN DESTINATION LANE UPHEAVAL a. Shifting Supplier Locations b. Shifting Customer Locations

2. 3. 4. 5.

NEW COMPETITORS

8.

INFRASTRUCTURE a.

BUSINESS GROWTH AND DECLINE SERVICE POLICY CHANGES

Road, Rail, Port, and Airspace Congestion, Capacity and Availability

SUPPLY CHAIN SECURITY, SAFETY AND COMPLIANCE a. Security Requirements b. Reconfigured Free Trade Agreements c. Wars d. Pandemics e. Natural Disasters f. Green

b. c. d. e.

Container Availability

Warehouse Space Availability Labor Quality and Availability New Modes of Transportation

f.

New Carriers

9.

DEPLOYMENT ANALYTICS AND PHILOSOPHIES

6.

RATES a.

10. CONSUMERISM AND RETAILING a.

Shifting Labor Rates Shifting Occupancy Costs

Shifting Retail Formats and Channels

b. c. d. e.

b. c.

E-Commerce, Last Mile

Interest Rates Exchange Rates Cost of Fuel Transport Rates

Fluctuating Demographics and Buying Patterns

f.

RightChain™ Incorporated

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