Supply chain network design can deliver significant reduction in supply chain costs and improvements in service levels by better aligning supply chain strategies.

 

Supply chain network design is a powerful modeling approach proven to deliver significant reduction in supply chain costs and improvements in service levels by better aligning supply chain strategies.

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In Vehicle manufacturing ,Logistics – a cost factor that should be avoided resp.reduced to the minimum – 4 major aspects

 

Optimized/ minimized Logistics costs (transportation, packaging, warehousing, etc.)

 

Co-location of suppliers at OEM premises for transportation via tucker trails

Sourcing of approx. 70% of material volume within the state and hence high flexibility and short transportation times

Pick-up of parts by external Logistics Service Provider at a fixed date, fixed time, fixed location

Ensuring of full good loads and transparency via tracking &tracing Optimized In Bound LOGISTICS via milk run based on hub & spoke

Reduction in warehouse space and avoiding of multiple

handling for storing and line transportation Avoiding of multiple handling via direct delivery

Usage of returnables and standard steel cages

Usage of packaging concept which allow direct delivery to assembly line without repacking

Good logic...........

Key Takeaways:

1) Drive clarity of needs and wants.

2) Funnel Approach

3) Sensitivity analysis

4) Simulation and “What If†Analysis