The CGN Blog

Differentiating Supply Chain Network Analysis And Inventory Optimization

Written by CGN Team | Jan 30, 2016 6:00:00 AM

Supply Chain Network Analysis designs and optimizes your supply chain. CGN Global (CGN) assists its clients creating a new supply chain, adding to the current supply chain or evaluating effectiveness of an existing supply chain

  • Improve strategic and tactical decision making with visibility into network design, sourcing and capacity planning.
  • Demonstrate the comparative value of “what-if” scenarios from a cost and service perspective.
  • Creating baseline models in order to be ready for major business changes, mergers & acquisitions, and other contingencies.
  • Greenfield analysis to determine distribution nodes based on customer locations, demand concentration, and service requirements.
  • Coach clients on a “Big Picture Thinking” approach to network design and help them transform their supply chain networks starting from ideation to implementation.
  • Determine optimal product distribution and inventory stocking strategies.

Inventory Optimization (IO) refers to the process of using analytical methods to find the correct balance of demand and supply. In doing so, inventory optimization determines the most cost-effective inventory mix and the level of inventory to be carried for all products while allowing for the filling of the maximum number of orders with the least quantity of stock on hand.

  • IO programs represent the state of the art approach in optimizing inventory levels across the end to end supply chain
  • IO will point out how to free up working capital from redundant inventory buffers and safety stock
  • Reducing working capital reduces inventory carrying costs and improves turns thereby increasing service levels to customers
  • As Forrester Research pointed out, in a recent report, the ability to increase inventory turns is a key differentiator between highly successful and more poorly performing companies
  • Improved visibility with IO will allow ongoing monitoring of inventory management performance

CGN Global has partnered with external software and service providers including LLamasoft, the creator of Supply Chain Guru, to bring cutting edge supply chain analytics and decision support systems to aid decision making in network design and optimization.

If you would like to learn more about the different elements of Supply Chain Guru, contact:

Tom Rauch
Managing Principal
tom.rauch@cgnglobal.com
Office: 708.284.3684