simulations project presentation

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Use back testing technology to test all your supply chain what if scenarios.

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simulations project presentation

  1. 1. Redesigning and optimizing a Distribution Network Strategy
  2. 2. What is SOAP Simulation ? It is a supply-chain simulation tool allowing back testing of what if scenarios. One question our system is built to answer: “What if my future supply-chain distribution strategy was implemented last year ?” Run numerous „What if‟ scenarios and get detailed financial and operational performance reports.
  3. 3. Distribution network redesign A distribution network strategy defines how we move goods to market, from the suppliers to the customers thru the company supply-chain network, therefore it need to constantly adapt to external and internal constraints. Redesign main drivers  Mergers and acquisitions  Business growth or downsizing  Competitive pressure to increase costs efficiency  Change in customer service requirements  New market opportunities  Change in supply or customer base  Increase in fuel / transportation costs  Change in local logistics optimization (pack, size, EOQ…)
  4. 4. Distribution network redesign What are the most encountered question when redesigning a supply-chain network strategy? What is our best sourcing What is our best distribution What is our best strategy? strategy? transportation strategy? • Should we do direct to store • How many distribution centers? distribution? (Per family, What size? • For which suppliers should we category, velocity...) • Where are the best locations? use an integrated inbound • Should we source to each • which type of product (family, freight? distribution center or thru a category, velocity, sourcing ...) • Which transportation modes primary location? • What market should be served by and partners should we use • When should we do supplier each distribution center? from each site? cross-docking replenishment? • What is the optimum stocking • How can we consolidate and • What is the financial impact strategy? optimize our freight? of the different replenishment • How can we optimize global • What are the best routes for strategy (Full truck, minimum distribution costs? my shipments quantity, JIT, Frequency, • How do we reduce working • What strategies can we use scheduled...)? capital in our distribution network? to minimize carbon footprint
  5. 5. SOAP back testing methodology phase 1 – business assessment Model Model Detailed Business Data baseline alternate result assessment gathering scenario scenario analysis Business assessment:  Identify supply-chain redesign project‟s scope  Identify current business model  Identify key business issues and main drivers  Identify company strategic vision.
  6. 6. SOAP back testing methodology phase 2 – data gathering Model Model Detailed Business Data baseline alternate result assessment gathering scenario scenario analysis Data gathering  Develop data gathering requirements ◦ Master data file: Item, Vendor, Customer/Site ◦ Inventory file: inventory count, Movements ◦ Marketing file: Promos, assortments (new items, end of life …) ◦ Tags  Assessment of data availability and data accuracy.  Develop test files, data control, validation
  7. 7. SOAP back testing methodology phase 3 – Model baseline scenario Model Model Detailed Business Data baseline alternate result assessment gathering scenario scenario analysis Model baseline scenario  Construct and simulate baseline scenario, this is the representation of the current supply-chain business model  Calibrate baseline model to actual spending, this is a major task that allow thru a „AS IS‟ simulation run to validate the correctness of the data and the correctness of the current business model design
  8. 8. SOAP back testing methodology phase 4 – Model alternate scenario Model Model Detailed Business Data baseline alternate result assessment gathering scenario scenario analysis Model alternate scenario  Define main alternative group of scenarios to evaluate  Construct and simulate alternative scenarios  Compare alternative scenarios simulation results
  9. 9. SOAP back testing methodology phase 5 – Detailed results analysis Model Model Detailed Business Data baseline alternate result assessment gathering scenario scenario analysis Detailed results analysis  For each group of scenarios provide detailed financial report  For each group of scenarios provide detailed operational report

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