Supply chain network design

"Making changes to our global supply chain network can result in potentially huge savings - or risks! Using a dynamic simulation model of our proposed network changes - facility and inventory locations and transportation modes - Automation Associates was able to help us understand the performance and financial tradeoffs and confidently move forward with needed changes."
- Director of Logistics, Hasbro

Our approach to supply chain simulation solutions is to create visibility for our clients into the future of their global supply chain operations - in detail. Using the power of advanced simulation techniques and modeling software, we create a "virtual world" supply chain network model of production and distribution facility locations, inventory locations and policies, client locations and transportation modes and selection policies. The models are dynamic; we can see how the system responds to change and variability over time - a critical issue when analyzing supply chains. The model is then used to test proposed changes to facility locations, production mix, inventory locations, transportation mode selections and a wide variety of "what if" scenarios to demonstrate how the entire supply chain will respond. Most importantly, critical questions can be addressed prior to making changes to the actual supply chain, avoiding the disruption and risks inherit with such changes.

Common issues for which clients seek resolution include:

  • Will moving production overseas, with the increased transportation costs and potential delays, actually result in an overall net savings?
  • What will the impact be on cost and customer service times if I consolidate my distribution facilities into centralized or regional locations? Where are the most cost effective places to locate them?
  • If I distribute the production of key products to multiple locations from the current facility (to avoid a single point-of-failure problem), will the added costs be offset by better customer service?
  • If I switch transportation modes from truck to rail between my main facility locations, what will the actual net cost differences be, given that I'll need to add more local inventory buffer storage?

Using a proven multi-phased project approach, we provide quantitative answers to these and many other questions so clients can confidently move forward with key investment and operations decisions. A few of the clients that have benefited from AAI's supply chain network design solutions include:

Can simulation help improve your supply chain operations?
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