What is supply chain network design? Definition and best practices

Supply chain network design is a strategic and ongoing process that involves mapping and optimizing the movement of goods from suppliers to end customers, with the goal of maximizing efficiency and minimizing costs. By strategically placing facilities and selecting optimal transportation routes, organizations can streamline operations, reduce fuel costs, and enhance customer satisfaction. Geographic information systems (GIS) play a crucial role by providing visibility into demand patterns and helping to model different scenarios for better decision-making. Supply chain network optimization further refines logistics and transportation within an existing setup, focusing on reducing expenses and increasing responsiveness to market changes. Benefits of this approach include cost reduction, risk management, environmental impact assessment, and improved decision-making through real-time data analysis. Best practices for designing a high-performing supply chain network involve aligning network design with business strategies, segmenting inventory, evaluating supplier locations, and using GIS technology to create flexible, risk-mitigated systems. Additionally, the use of tools like Felt's browser-based platform can simplify the visualization and analysis of complex logistics, promoting collaboration and continuous improvement in supply chain operations.