Upload
others
View
7
Download
0
Embed Size (px)
Citation preview
How network modelling supports Supply Chain Design decisions
Nissan Case Study
Nick JordaanDSV Supply Chain Innovation,
Supply Chain Advisor, Sub-Saharan Africa
Flip EngelbrechtNissan SA, Senior Manager of Procurement,
Inventory and Systems
NISSAN GROUP
OF AFRICA
1
123 Dealers throughout SAF
42 NSC in SSA Market
22 000 m³ of Warehouse Space
41 000 Active SKU
Nissan SA Aftermarket Network Study
Network Modelling
Approach
Customers Need
Strategy Alignment
Scenario Selection
Data Analytics
Selecting software
Run the “What If” Scenarios
Analyze Results
Implement
Need for Network Design and Optimization
WHY DO COMPANIES DO NETWORK DESIGN AND OPTIMIZATION STUDIES?
576337
Nissan’s Need for Network Study
GLOBAL COMPETITION FUTURE GROWTH
NEW STRATEGY REDUCE COST
Customers Need
StrategyStrategy
Alignment
Typical Aftermarket Network Variations in SAScenario Selection
With Main DC
• Cost effective
• Long lead times
Normal DC with Regional DC(s)
• Close to market
• High warehouse cost
National DC with Super / Wholesaler Dealer
• Stock close to end user
• Loss of control
Cross Dock with Inventory at Dealer
• Quick to Dealer
• High redistribution cost
Sourcing
SOURCE : INBOUND FLOW
Local vs International
Air vs Ocean
Port of Entry FCL vs LCL
Scenario Selection
Delivery Requirements
( SLA)
Routing
Road vs Air vs Ocean
Exports
OUTBOUND LOGISTICS
DELIVER : OUTBOUND LOGISTICS
Scenario Selection
Costs
Locations
Local and
International
Number
of DCs
Inventory
Racking
MHE
Warehouse
Layout
Process Flows
Value Add
Services
Outsource vs Insource
Warehouse
SizeStrategic Tactical
Operational
Product Group Level
Data Analytics
SKU Level
Current Sales Future Sales
41K SKU 47K SKU
New Vehicles
Old Vehicles
Life time Buy
Normal Growth
Modelling Outcome
Data AnalyticsImportance of Forecasting – Sustainable Solution
Modelling in 3PL Environment in SASelecting Software
Air & Sea Solutions DistributionIO
Port of Entry Warehouse Size Safety StockNumber of Vehicles
/ Routing
Network OptimizationTransport
Optimization
Various Systems and Inputs
Outsource vs Insource vs Hybrid
Nissan Scenarios
12
1 2
3 4
Run the “What if” Scenarios
Network Flow per Scenario for NissanAnalyze Results
1 DC
Rosslyn, GP
2 DC
Midrand, GP
Berea, KZN
3 DC
Berea, KZN
Kuilsriver, WC
Meadowview, GP
SSA RDC
Alberton, GP
Scenario Results…
14
Analyse Results
Cost Availability
Compared to Baseline 1 DC (Future)
Year 1 DC 2 DC 3 DC1 PDC
Africa 2 RDC
Total Supply Chain Cost - 1% 2% 3%
% Demand Serviced Same Day - 11% 20% 1%
Executive Supply Chain Decisions
• Where in my supply chain network can I optimize for savings?
• Does my network have optimal Fleet?
• Do I outsource or insource operations?
• What is my most profitable market?
• What is the optimal location to open a New DC?
• Is my stock holding accurate to serve demand?
• What is my optimal number of DC’s and size for 2025?
• Does my network design fit the Business Strategy?
Conclusion
Align business
strategies
Best practice
approach Continuously
evaluate network
Determine the
Need
Questions & Answers