This webinar discusses extending supply chain network optimization towards cost-to-serve modeling. It describes how optimization can find the best network designs and allocate shared costs fairly. The webinar explains how adding supply chain network optimization to cost-to-serve modeling allows companies to minimize costs, maximize growth, improve cost allocation, and ensure their cost-to-serve analysis remains accurate over time.

1. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Webinar:
SC Network Optimization 2.0
And how to extend SC Network Optimization
towards Cost-to-Serve?

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About Marcel Mourits
> MsC in Mechanical Engineering
> PhD in Supply Chain Network Design
& Operations Research
> 10 years with Logistics Service
Providers and Retails
> 6 years in SC & Manufacturing
Business Consulting
> 3 years with AIMMS
Passion for improving decision making

3. © AIMMS - 2015 Do not copy, cite, or distribute without permission
AIMMS…
… offers a new approach to solve critical business problems in typically
four months with our breakthrough technology.

4. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Optimization finds you the “Best Set of Actions”
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5. © AIMMS - 2015 Do not copy, cite, or distribute without permission
SC Network Optimization; Technology Needs
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accurate, the
best possible
network
designs are
created by the
application
dynamic, i.e. being
easily updated every
month
automatic, upload
latest data
automatically for
each new study
timely, execute your
studies quickly with
the fastest
technology
flexible, any
change in
scope, aspects,
constraints and
complexity can
be easily
incorporated
end-to-end, to
include also
your suppliers,
contractors,
distributors,
and clients

6. © AIMMS - 2015 Do not copy, cite, or distribute without permission
SC Network Optimization; Technology Needs
6
accurate, the
best possible
network
designs are
created by the
application
dynamic, i.e. being
easily updated every
month
automatic, upload
latest data
automatically for
each new study
timely, execute your
studies quickly with
the fastest
technology
flexible, any
change in
scope, aspects,
constraints and
complexity can
be easily
incorporated
end-to-end, to
include also
your suppliers,
contractors,
distributors,
and clients

7. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
What makes your SC network study unique?
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Sustainability
Tax constructions
Speculative sourcing
Finance
Specific skill needs
Production process
Supply vs Demand driven
Alternative products
Stochastic NPI
. . .

8. © AIMMS - 2015 Do not copy, cite, or distribute without permission
SC Network Optimization; Examples
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Our clients in Supply Chain
Optimization & IBP
1990 1995 2000 2005 2010 2015

10. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Our partners in SC Network Optimization

11. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Why powering Cost-to-Serve with SCNO?
Initially, insight into cost-to-serve is great!
Over time, questions emerge on how to:
> Keep aligned with reality?
> Allocate shared costs fairly?
> Go beyond low hanging fruit?
> Embed in monthly IBP process?

12. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Adding SCN Optimization to Cost-to-Serve
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13. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Adding SCN Optimization to Cost-to-Serve
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14. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
SCN Optimization & Cost-to-Serve
COST • minimize cost
REVENUE
• maximize growth
• markets, accounts
• new product introductions
ACCOUNTING
• allocation
• dependencies
IMPROVEMENT
• ‘always right’
• granularity

15. © AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission
SCN Optimization & Cost-to-Serve
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from observing to steering
COST
REVENUE
ACCOUNTING
IMPROVEMENT
. . . . . .
. . . . . .
. . . . . .
. . . . . .

16. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Questions you can answer with SCNO - CtS
> what is the best SC setup if I want to minimize costs? Or maximize growth?
> which solution is best in emerging markets? And which for key accounts?
> how do I rightfully allocate upstream costs to down stream supplies?
> how do changes in one product group / client segment affect others?
> how to best prepare for multiple New Product Introductions?
> how can I ensure my Cost-to-Serve is set right at all times?
> how granular can we go?
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short example
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SCN Optimization & Cost-to-Serve & . . .
> extend to Segmentation ?
> extend to COGS ?
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19. © AIMMS - 2015 Do not copy, cite, or distribute without permission
Next Webinars in this series
Interested in more Webinars ?
> Send your ‘Christmas wish list’ to: marcel.mourits@aimms.com
Check us out at www.aimms.com
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