What is Supply Chain Network Design? An introduction to Supply Chain Network Design.

GRA Director David Drummond talks with GRA Director Dan Knox about Supply Chain Network Design

In the interview David answers the following questions:

00:19 What is involved in Supply Chain Network Design?
05:34 What are examples of some Supply Chain Network Designs that GRA has recently undertaken?

Supply Chain Network Design focuses on establishing the supply chain to service your customer base. Organisations need to determine their business strategy and customer value proposition to work out what they want to service. They then can develop their supply chain strategy and the Supply Chain Network Design accordingly.

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Selected transcription
Dan Knox: I'd like to have a chat to you about supply chain network design. What's involved in supply chain network design?

David Drummond: That's a great topic, Dan. Supply chain network design is really focused on how do you establish your supply chain to service your customer base. And a lot of organisations have a different requirement for their customers. You work out your business strategy. You work out your customer value proposition. And when you understand what you want to service, you then develop your supply chain strategy but then your network design to service that.

Dan Knox: What's involved in the network design? What do you have to consider?

David Drummond: The network design, it can be very complex, but if you're used to working with them it really is quite simple. It comes down to what's your source of supply? How do you get those goods from source of supply to your customer base. We see a lot with retail store models, bricks and mortar, and we see a lot more online in the last 10, 15, 20 years. And you've almost got two channels to market. So customers sometimes work in both spaces. They're sourcing from the same place, but they see the complexity of servicing two different demands, two different movement profiles. So it's really reviewing how those goods need to move from end to end. to move from end-to-end.

Dan Knox: Now David, can you give me a couple examples of some of the projects you've worked on with supply chain network design?

David Drummond: Yeah, a couple of recent ones. One involved review of 7 offshore consol facilities, the process of feeding the goods into them was quite fragmented, not consistent. We rationalised that consol facility process and had a just-in-time into store arrangement which effectively shipped via sea arrived in the country, and within 10 days had to be through a domestic DC and into store, through numerous stores all over the country.