IBM Decision Optimization
SC_Manager 270002HW8N Tags:  logicnet production transportation network xe plus planning costs modeling 2,390 Visits
I attended the CSCMP Chicago Roundtable event at RR Donnelley last week (February 11, 2009) and heard an interesting presentation by my colleague Jay Jayaraman. He discussed a project we are working on where a manufacturer of a commodity has the choice of exchanging product with a competitor. The idea is that a company can source an order from a competitor’s location that is closer to the intended customer than its current manufacturing base. The impetus being a saving on transportation costs. The key is that both companies can benefit from the swap since they both can reduce transportation costs, and each company keeps their relationships with their customers. Of course, this scenario can only work with commodity-type products.
To take full advantage of the situation, our network modeling and production planning tool, LogicNet Plus XE, can be used to determine the best possible swaps as well as understand all the constraints that impact the results. Doing this type of analysis with Excel can lead to omissions and sub-optimization.
It’s fascinating how collaboration, even amongst “enemies”, can lead to benefits for all…
P. Louis Bourassa
Technical Account Manager
Andrew Reese 270002Q78Q Tags:  design chain and network inventory regional smarter conference management planning – chains supply atlanta 2,514 Visits
At Smarter Supply Chains – Atlanta Regional Conference, David Simchi-Levi talked about Combating Volatility through Flexibility. I talked about this in greater detail here.
One point that David raised at the outset was the increased level of volatility surrounding the supply chain. His point was that companies need to be careful in thinking about the "best practices" that they apply to managing their supply chains. In such a dynamic environment, the best practices that applied before the recession - or before oil prices spiked, or before they crashed again - are not necessarily applicable today. It's a call to action for all supply chain executives to step back and reassess their processes to see if they are still "best in class," or whether there might be benefit to adjusting to the "New Normal."