Network Design

Ready to find the best way to connect suppliers, manufacturing facilities, distribution centers, and customers in your supply chain? SupplyChops can help you with this question by solving network design problems. The network design analysis goes further than the facility location analysis by modeling more of the supply chain. Specifically, suppliers and multiple warehouse echelons can be modeled and optimized.

Tip: If you are new to supply chain network design, we recommend that you start with a Facility Location analysis. The facility location analysis is simpler and a good fist step. The network design is a great second step.

A network analysis can provide many benefits including:

Strategic Growth:
An optimized network can support the expansion of an organization's market reach by ensuring that the supply chain serve the right customers and can handle increased volume or complexity effectively.
Competitive Advantage:
Achieving an optimal supply chain network can provide a significant competitive advantage by enabling an organization to deliver products at lower costs and with higher convenience than competitors.
Cost Reduction:
Optimizing the supply chain network can lead to substantial cost savings by minimizing transportation costs, reducing warehousing expenses, and optimizing other operational expenses.
Enhanced Agility:
An efficiently designed supply chain network can provide greater flexibility and adaptability in responding to changes in demand, supply disruptions, or market dynamics. This agility is critical for staying competitive in dynamic markets.
Reduced Environmental Impact:
By optimizing transportation routes and modes, organizations can reduce their carbon footprint, contributing to sustainability goals and meeting regulatory requirements.
Data-Driven Decision-Making:
The process of network optimization relies on data analysis and modeling, which promotes data-driven decision-making and a deeper understanding of the supply chain dynamics.

You can follow up the network design analysis with a step-by-step transformation plan from your current network to the ideal network using the Network Design Transformation Plan Template.

Learn more with our use case.

Worked example

Do you need help with a worked example? You can download a sample spreadsheet with design data for the biggest cities in the state of Florida. The problem file is available here: sample problem spreadsheet.

The results sent in e-mail after the problem is solved contains the facilities to open and the shipments to send. The solution file for the sample problem is available here: sample solution spreadsheet