Supply Chains for a Changing World

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Supply Chains for a Changing World Reducing Inventory, Cost and Carbon Footprint


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Supply Chains Need Improvement

Here’s an article from the WSJ about one such supply chain (http://online.wsj.com/news/articles/SB10 001424052702303877604577382260173 554658 )

Supply chains that were once good enough, now have to get a whole lot better

Let’s explore some different ideas to get the improvement we need…

http://online.wsj.com/news/articles/SB10001424052702303877604577382260173554658




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Model the Supply Chain and Simulate Operations

We’ll model that 3M supply chain and use supply chain simulations to find opportunities for improvement

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Define: - Products - Facilities - Vehicles - Routes


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Define Products and Facilities

First we’ll describe the characteristics and costs of the products and facilities in this supply chain

Facilities Products


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Define Vehicles and Routes

Then we’ll describe the vehicles and routes that move products between the facilities

Vehicles

Routes


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Simulate Supply Chain Performance

And then, we’ll run a simulation of the supply chain to see its daily operating costs and performance levels

Real-time cost and performance data


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See Points of Failure

A problem is found on day 6 – the factory in Indiana runs out of needed product… let’s explore different ways to solve this problem

Point of F

ailure


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Download Data for Analysis

Online graphic and numeric displays show what happened; we can download simulation data to spreadsheet for further analysis if needed

Data Download


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Make Changes to Products and Facilities

Let’s try increasing the product on-hand amount and increasing product storage capacity at the plant in Indiana


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Try Different Vehicles and Routes

What would happen if we increase the truck size and drop quantities of product delivered to the factory in Indiana?


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Supply Chain Performance Getting Better…

Supply chain runs longer now before problem appears (16 days), but operating costs and carbon footprint went up – can we do better?


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Different Vehicles Can Lower Carbon Footprint

Fast and responsive (high carbon)

Efficient and low cost (lower carbon)

Fast and responsive (low carbon)

What would happen to costs and carbon footprints if we used more efficient and more low carbon vehicles?


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Find Ways to Lower Both Cost and Carbon

Get lower costs by synchronizing production and demand while reducing inventory and storage. Lower carbon footprint by using different vehicles.


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The Future is Yours…

There are no right answers – only better answersSimulations show you which answers are better Model new or existing supply chains anywhere in the worldAcademic and commercial versions available - www.scmglobe.com

http://www.scmglobe.com/

Education

Supply Chains for a Changing World