Learn about the Next Step in Dynamic Network Management from HAVI Global Solutions Experts
Although successful supply chain management may often seem basic in its simplest form: Get the right ingredients or products to the right location, at the right time for the best price possible; the practice of these explicit objectives can become extraordinarily challenging in an ever-evolving and dynamic marketplace.
In the modern global marketplace with consumer demands, opinions and preferences hinging on instant gratification, and product or even ingredient availability are at the mercy of not only country borders but party lines or unpredictable climate change, additional flexibility and agility in your supply chain becomes increasingly important.
The experts at HAVI Global Solutions (HGS) have developed a proven approach to network optimization that meets critical business needs by managing project costs and risks while guaranteeing best-in-class results. Providing insight on the topic are two of HGS’ leading strategists and Directors of Global Optimization and Analytics.
With nearly 30 years of combined experience in the industry and evolution of the practice, Bullard and Thaker discuss their unique approach to supply chain network design which they have paired with network utilization (effective asset management), allowing customers to minimize risk and maximize visibility across the supply chain.
Recognizing the global market characterized by instantaneous changes, Bullard and Thaker share the importance of designing a network optimization system with processes flexible enough to respond to changes in supply availability and demand fluctuation. While most companies and business leaders inherently understand this, far fewer operate their businesses according to this principle.
To provide realistic application, Bullard and Thaker outline the challenges and variables of an instantaneous marketplace and how predictable and unpredictable elements factor into the need for proactive and dynamic network management. Examining each sequence of the network, steps to the optimization of your companies’ network is broken down through applicable context. At a glance:
- Step one: Evaluation. When constructing the design of their networks, companies should strive to incorporate as much flexibility as possible, creating a distribution network capable of meeting changing conditions in a way that real-time shifts in demand don’t disrupt a seamless process of distribution, transportation, shipment and receipt.
- Step two: Define the scope of your supply chain capabilities and determine the categories in question.
- Step three: Identify relevant data sources. Sequencing out the supply chain network, determine where your information sources lie and collect the relevant data necessary to measure, analyze and implement changes.
- Step four: Collect relevant data from information sources identified throughout the supply chain in such a manner that it can be reviewed in one source by all of your key partners.
- Step five: Organize and transform the data collected to produce the required optimization output based on the initially defined scope.
- Step 6: Identify partners who have the flexibility to meet your changing needs. It’s critical to have supply chain partners who can work with the company to respond to a wide range of variables, from sourcing new supply to changing oil prices to strikes at West Coast ports, etc..
- Step seven: Identify, review and implement changes based on the relevant data collected and analyzed.
Of course, the information itself is only so valuable until it is applied. It takes more than just new processes and technology to enable network optimization. Bullard and Thaker also discuss the importance of complementing the above components with clear organizational goals and open communication that is inclusive throughout marketing, supply chain and distribution groups in order for the real-time application to follow suit of the real-time data analysis.
In essence, optimizing your network allows for your supply chain to serve as a strategic advantage rather than just a cost center, facilitating and enabling strategic advantages. As the market continues to evolve, it’s important for companies to dedicate the time and resources as they evolve the management of their supply chain networks from a static and traditional approach to a more optimized and dynamic system in order to work effectively with real-time application.
Register here to learn how rethinking your optimization strategies can prepare your organization for the dynamic challenges that lie ahead. The webinar being presented by HAVI Global Solutions will be live on September 22, 2015 at 10:00 a.m. New York and at 3:00 p.m London.