Supply Chain - Supply Chain Network Strategy

Network strategy is concerned with determining the best supply chain infrastructure for a business, including the location and function of Distribution Centres, Cross-dock Centres and outbases. This needs to take account of business requirements and planned developments.

The starting point in developing network strategy is to analyse the performance of the existing logistics infrastructure and to understand the dependencies within the supply chain. Particular focus needs to be placed on customer service requirements.

Centre of gravity modelling allows the best location(s) to be identified from a supply chain logistics viewpoint, considering both inbound and outbound flows. Detailed scenario modelling can then be carried out for combinations of locations, taking into account transportation requirements, space costs, staffing costs and other local factors.

Total Logistics has developed Centre of Gravity models and Network Optimisation models within the Insight suite of supply chain modelling tools.

Total Logistics provides practical strategic supply chain consultancy across all industry sectors throughout Europe and the rest of the world. For more information contact us on +44 (0)118 977 3027, or send an e-mail to info@total-logistics.eu.com.

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This Supply Chain glossary article was last updated on 8th November 2007