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Supply chain strategy studies also address the tactical issues that need to be considered before your firm can make important decisions that optimize your infrastructure.
- Based on our service level requirements, how many distribution centers should we have and where should they be located in order to optimize operating expenses?
- What is the optimal supply chain network strategy that minimizes our investment into inventory assets? Is this network strategy also optimal for the sum of operating expenses and working capital requirements?
- What capital expenditures into our supply chain network infrastructure are currently required to enable the optimal network? For the next 10 - 15 years
- What size of facilities is required to support the optimal network strategy? What capital investments are required to support this infrastructure?
- How do we improve customer service levels and especially order turnaround time to be more competitive?
- Are there strategies available to reduce risk exposure for disaster recovery, business continuity and labor issues?
- Should we consider outsourcing strategies for specific markets and/or facilities?
MWPVL International has developed an approach that is unique and powerful because we use industry-leading software applications specifically designed to optimize supply chain networks combined with our own internally developed econometric modeling tool (EMT). Unlike most consulting firms, we understand that an optimized supply chain strategy requires a detailed exploration of the sum of operating expenses, one-time expenses, inventory assets and capital expenditure requirements. Rather than producing high level “black box” numbers, our econometric modeling tool simulates your company’s financial accounting statements down to the general ledger of detail. The final deliverable is an accurate assessment of the true shareholder value generated on an annualized after tax cash flow basis for each supply chain strategy evaluated. If your company has stringent financial accounting requirements to justify capital expenditure requests, our methodology is unique to the supply chain consulting industry because it provides companies with the financial confidence to make important decisions that will ultimately improve their competitive position in the market place.
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