Supply chain strategy studies also address many of the tactical issues that need to be considered before a firm can make important decisions to optimize its return on assets. Based on customer service level requirements, how many distribution centers should there be and where should they be located to minimize logistics operating expenses?
- What is the optimal supply chain network strategy to minimize inventory assets? Is this network strategy also optimal for the sum of operating expenses and capital investment requirements?
- What capital expenditures into existing logistics network infrastructure are required over the next 10 - 15 years? How does this compare to alternative strategies being evaluated?
- What facility sizing is required to support the optimal logistics network strategy? What capital investments are required to support this infrastructure?
- How can a firm improve customer service levels and order turnaround time to be more competitive? What is the price tag of moving in this direction?
- Are there strategies available to minimize supply chain risk exposure? to ensure business continuity in the event of disaster? to address labor strategy?
- Should a firm consider 3PL outsourcing strategies for specific markets and/or facilities within its network?
MWPVL International has developed a unique approach that is powerful because we use the latest in supply chain optimization software applications designed to optimize logistics 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 logistics operating expenses, one-time expenses, inventory assets and capital expenditure requirements. Rather than producing high level “black box” numbers, our econometric modeling tool (EMT) 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, based 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, then 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.