Given today’s dynamic business environment, it’s important for companies to regularly re-evaluate their supply chain networks. This can be accomplished by embarking on a network modeling process whereby you compare the performance of your existing network to the simulated performance of alternative networks. Among the factors to consider are the number and locations of manufacturing facilities, distribution centers, and crossdocks as well as transportation modes and inventory levels to best serve markets and customers. Many of our clients find network savings opportunities of 10-20% as a result of the modeling process.

It is especially important to consider this today given the impacts the current recession and volatile fuel prices are likely having on your business. The global economic downturn has provided a reprieve from the high fuel prices we saw in the middle of 2008. However, most analysts believe this reprieve is temporary. As fuel prices climb, the efficiency of your network becomes even more important.

Even though companies typically cut back and retrench during recessions, now is not the time to put aside planning for tomorrow. As soon as the economy comes roaring back to life, and eventually it will, you want to have an actionable plan in place to best position your company for success. As supply chain managers, we need to be proactive in helping lead our companies toward a brighter future.

Call us today at 248-210-5569 to see how network modeling can help you plan for a successful future.