A best-in-class modelling tool alone does not guarantee the correct result. If data is not queried through the lens of supply chain operational practice, if a structured process is not followed to achieve compatibility with volume forecasts and without a thorough understanding of the customer’s operating model, valuable time and effort can be spent without achieving a clear recommendation.
We have extensive experience in modelling supply chain networks for companies across industries and geographies, guiding clients through a well-defined process supported by IT. We use Siemens’ XCargo® for network modelling and optimisation, overlaid with our own set of Tableau® data models to aid in data visualization and deep-dive analysis.
To provide timely and reliable insight into the real estate market and workforce availability, we work with global leaders in real estate consulting with networks in more than 80 countries. This provides a holistic approach to logistics and industrial real estate, closely intertwined but whose connection is often overlooked.
Supply chain and finance managers value our insights on financial modelling of the impact of service policies changes, such as lead times, complexity, inventory levels and product availability. In some industries, order visibility and reverse logistics also play an important role in the design.
Stage/Gate Process
Our proven approach is broken down into the following four-step process:
Characteristics of AS-IS situation
Purpose
- To understand and map the current operating model and supply chain of the customer (operations, costs and volumes)
- To understand and map the future (3-5 years) business size and key changes in the customer’s operational model
Products
- Characteristics of the existing “AS-IS” supply chain with an indication of areas for improvement/gaps in efficiency and quality
- Collected and purified historical data and forecasts needed for the next stage
Methodology
- Operations visits and interviews with key experts
- Documenting needs and constraints in transport and storage/cross-dock operations
- Logical model and modelling data structure
- List of data requirements, sources and collection methods for the customer
- Collection and verification of operational and financial data provided by the customer
- Determination of demand and acquisition of external data
Creating a baseline model and scenarios
Purpose
- To establish and calibrate the model based on collected data and assumptions
- To define the scenarios to be examined and the criteria for their assessment
Products
Parameterized and approved model to serve as a research tool and reference for the modelled scenarios
Defined and approved list of scenarios to be examined in the next stage
Methodology
- Creating a database to feed the model
- EX-POST simulation on the history basis to verify/calibrate the model
- Creating a baseline model based on a future forecast with the current supply chain structure (test “DO NOTHING” scenario)
- Analyses, visualizations and observations:
- Distribution of demand and supply, bottlenecks and inefficiencies
- Distribution of cost factors and formulas describing them inc. fixed and variable costs mapping
- Translation into a future model:
- changes in the geography/market/channel structure
- inflation for specific costs categories wages, transportation etc.
- all relevant strategic assumptions and requirements
- Confirmation of “target function” and weights for individual parameters, e.g. operating cost/capital/service level/ response time/flexibility
- Developing a list of potential scenarios based on collected analyses and assumptions
- Approval of the scenario list by the project sponsor(s)
Modelling, optimisation and recommendations
Purpose
- To compute and optimise scenarios
- To confront analyses with reality, i.e. availability of infrastructure, the labour force in optimal locations
- To narrowing down the list of scenarios to shortlist through an iterative process
Products
- Shortlist of scenarios for the final decision
- Report on analysed scenarios and sensitivity to deviations from assumptions
- Report on the situation on the labour market, real estate and 3PL services in the desired locations
Methodology
- Scenario simulation and iterative optimisation
- Qualification/rejection of scenarios based on assessment criteria
- Evaluation of savings potential and impact on service vs “DO NOTHING” scenario
- Conducting a sensitivity analysis (“what if?” impact of volume, inflation)
- Labour market analysis for desired scenarios (availability, costs)
- Analysis of the real estate situation for the desired locations
- Evaluation of availability of carriers and 3PL services
Preparation for change
Purpose
- To present Business Case
- To obtain approval for implementing
Products
- Business Case summary of the study with the financial and business justification of the recommended scenario
- Implementation roadmap
Methodology
Exploration of each of the shortlisted scenarios:
Time and resources needed to carry out the change
OpEx/CapEx needed for change inc. exit costsImportant risks with prevention/contingency plans
Cash Flow / ROI calculation / P&L impact
Description of the recommendation with business justification on the chosen scenario as well as considered alternatives
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Case Studies
Selected Projects
- Complete European network design (5 DCs),
- design and optimisation for omnichannel
- development implementation approach and execution roadmap
Transportation tender strategy, documentation and execution. Route planning.
Redesign distribution & transportation strategy, design implementation plan for spoke and hub complex distribution
Transform field distribution from two separate categories and distributor model to unified 3PL-driven model. Outsource secondary fleet. Select & contract 3PLs.
Redesign Juice manufacturing network, step-reduce assets to match falling demand. Redeploy production assets to other plants without impacting service
Complete European network design (5 DCs), optimise for omnichannel, propose implementation approach and prepare for execution
Network modelling. Re-design of the location of transportation hubs
Graphene Partners redesigned warehouse processes and transport network design for a leading garden products producer and distributor, to deliver over 10% annual cost savings.