* Our Decision: Your Actions *
| Plan Network Design- Greenfield Analysis |
Better Network Design Allows Service, Cost & Competitive Advantages
New Geography entry, new product launch, reviewing long term purchase contracts, transport fleet chartering (or buying), production facility expansion decisions etc. related have few things in common. It would require investments i.e. these are capex decisions.
For each of the items above there usually are choices or where, how much, when and for a combination of these things necessitated by growth in demand your network design decisions making process complex.
Challenges and Prevalent Practices
Common practice is to build some spreadsheet calculations with projections of high level elements and review/compare scenario. Few challenges are encountered in the process-
- These calculations are based on high level elements and not on operational elements of capacity, routing, asset utilization, sales-distribution-inventory-production-procurement interdependencies. Not being grounded dynamically brings in flawed assumptions
- The hooks and handles built in spreadsheet can be changed one at a time to generate a unique scenario out of thousand’s possible. Not all can be evaluated. Experienced eyes can discard many of the useless scenario successfully but still lot remains.
- Simultaneous comparison of all option which is operationally feasible i.e. fixed cost incurrence is tied up with commissioning of investment asset being utilized operationally above a justified threshold.
- Decision makers find it extremely difficult to keep an eye on cost and feasibility simultaneously.
Our Differentiated Solution
Investments are high value decisions which should not suffer from such shortcomings. Apart from capex in-effectiveness the cost of customer service, operational costs, market share loss can be much bigger concerns
Our XPlan platform allows you to build investment model on top of detailed operational model. All you need to do is to have data for longer time horizon periods, investment options (new locations, production expansions, transport fleet with fixed costs, new product and related demand-supply options) and in a single click, you get the best facility commissioning-decommissioning options and level of utilization of period of time prescribed. Our network design algorithms has built in complex MILP optimization algorithm and user also get assistance of center of gravity and bulk route & distance generation utility.