Network Optimization: Changing Your Thinking About Success
95th Annual International Conference Proceedings - 2010 - San Diego, CA
The lion's share of our supply chain networks were designed several decades ago with an eye towards minimizing production costs through large-scale, flexible manufacturing runs — meaning that large regional demand for multiple products could be met with a minimum number of large manufacturing facilities. Today's world is a much different place as product proliferation, consumer preferences, and the need for customization is driving the need for more responsive supply chain networks. Winning companies have recognized this trend and have decided to challenge conventional wisdom. They are re-conceptualizing the definition of scale to develop competitive advantages by developing regional service areas sized to minimize combined transportation, distribution, and production costs — changes that allow them to respond more quickly to customer requests and regional micro-trends in a cost effective manner.