2004
New England Supply Chain Conference & Exhibition

Central vs. Distributed Stocks: Trends in Logistic Network Design

by Michael Watson and Bruce True

To remain competitive, companies must continually evaluate if their logistics network can continue to support key corporate strategies. Strategic supply chain planning and network design are increasingly viewed as necessary competencies. In a fact a Deloitte & Touche Study in October 2003 found that only 7% of companies today are effectively managing their supply chain. However, these companies are 73% more profitable than other manufacturers. Traditional network design studies have focused on the still important issues of determining the optimal number and location of warehouses, plants, and lines. However, recent trends have been to extend the analysis to include such important factors as determining where product should be made and where inventory should be optimally positioned within the supply chain. These points will be illustrated with many cases and examples, including a detailed case study of the process Welch's just went through. The Welch's case will discuss the process, pitfalls to avoid, the results, and the practical implementation issues.

Download Presentation