Rewiring supply chains to generated significant
and sustained value
Persistent challenges in maintaining market share and leadership have prompted Consumer Goods companies to opt for unique network configurations to optimize their supply chain – one that offers lowest total cost of ownership, provides sourcing information, delivers intelligent analysis and maximizes profits by taking into consideration financial and operational risks.
Consumer goods majors leverage ITC Infotech’s Smart Network Design to execute operational sustainability, bring in cost-effectiveness and create business alignment. ITC Infotech applies digitaligence to strategic network design, improving their client’s financial performance through increased revenues, reduced costs and enhanced flexibility to respond to market dynamics.
Strategic Network Design Framework
CPG businesses need to balance supply and demand carefully, in order to be able to better deal with issues like stock-out and lost sales.
Frequent introduction of new products
High inventory across supply chain leading to low responsiveness
Bottlenecks leading to reduced fill rate, even with manufacturing efficiencies in place
High obsolescence levels for procured materials
OOS for top-selling and stock aging for low-selling SKUs
High growth leading to capacity constraints
Macroeconomic factors like GST
ITC Infotech’s S&OP process framework helps clients strike a scientific balance between demand and supply, while keeping budgets on track.
Resource Acquisition and Divestment
Decisions on facility opening and closing
Product portfolio related decisions
Capacity augmentation vs outsourcing decision
High-level trade-off decisions
Automation uptake and forgo
Defining roles of various facilities
Product promotion planning
Transportation mode selection
Inventory versus service trade-off
Warehouse booking plan
Production SKU mix decision
Raw Materials and Finished Goods (RM &FG) sourcing network
Rough-cut-capacity-planning (RCCP) and firm distribution network
Shipment sizing and scheduling
Contract labor optimization
Safety stock and cycle stock optimization
Simulation and low level sensitivity analysis
ITC Infotech has developed a unique ‘SAVE’ methodology to ensure every client’s success:
Sourcing Information: Understanding the client’s unique business requirements and strategy, gaining competitive and value chain framework insights, mapping existent operation strategy and identifying key stakeholder 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
A strategic network design can help improve overall supply chain process.
Since supply chains consists of multiple functions within an organization, its success heavily depends on the level of collaboration across departments. Function-wise optimization gives suboptimal results as compared to end-to-end optimization exercises.
Clients leverage our expertise to help them periodically asses and align their supply chain networks with the changing dynamics.
Improved supply chain reliability
Improved supply chain responsiveness
Minimized landed cost at warehouse
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