Strategic Supply Chain Network Design

Persistent challenges in maintaining market share and leadership have prompted CPG companies to choose unique network configurations to optimize their supply chain – one that offers the lowest total cost of ownership provides sourcing information, delivers intelligent analysis, and maximizes profits by considering financial and operational risks. CPG majors leverage our Strategic Network Design to execute operational sustainability, bring in cost-effectiveness, and create business alignment. ITC Infotech applies intelligence to strategic network design, improving the customer’s financial performance through increased revenues, reduced costs, and enhanced flexibility to respond to market dynamics.

Our solution addresses and improves:

o   Resource acquisition and divestment covering

  • Decisions on facility opening and closing
  • Product portfolio decisions
  • Capacity augmentation vs outsourcing decision
  • High-level trade-off decisions
  • Automation uptake and forgo

o   Operating policies for

  • Prebuild strategy
  • Inventory versus service trade-off
  • Warehouse booking plan
  • Capacity realignment
  • Postponement strategy
  • Production SKU mix decision
  • Raw Materials and Finished Goods (RM &FG) sourcing network

o   Structural decisions related to

  • Defining roles of various facilities
  • Market planning
  • Product promotion planning
  • Transportation mode selection
  • Network structure

o   Operational efficiency for

  • Rough-cut-capacity-planning (RCCP) and firm distribution network
  • Shipment sizing and scheduling
  • Load optimization
  • Route planning
  • Contract labor optimization
  • Safety stock and cycle stock optimization
  • Simulation and low-level sensitivity analysis



ITC Infotech has developed a unique ‘SAVE’ methodology for its clients:

  • Sourcing Information: Understanding the client’s unique business requirements and strategy, gaining competitive and value chain framework insights, mapping existing operations strategy and identifying key stakeholders to map readiness for change
  • Analysis: Classifying KPIs, benchmarking success factors, checking effect of distribution network redesign on other business processes, developing high-level model framework, time estimation and critical data collation
  • Validation: Building baselines and optimized models, performing cross alternative sensitivity analysis to arrive at final scenario, creating business process impact metrics, implementation road map, final KPIs and redesign process flows
  • Execution: Execute changes as per road map, run simulations to generate performance metrics, implement user training, and run awareness programs followed by monitoring adoption and success factors continuously to ascertain solution effectiveness

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