Study 3: Identify Optimal Sourcing Locations
This study can help you anticipate shortages in your supply chain.
As transportation lanes become unavailable, the availability of suppliers and components will decrease.
There is a strategic incentive in understanding the optimal sourcing location for specific customers, and in understanding the optimal sourcing location for the different resources. This is not to say that there is no value in having multiple supplier options, but understanding who your ideal supplier is can enable you to form the right relationship and expectations with them for the coming weeks.
Network Design Navigator enables forcing a single source as a constraint. Once the constraint is relaxed, customers are free to choose from a multitude of suppliers. However, with the constraint enforced, the optimal source of the product can be studied while minimizing both production and distribution costs. Network Design can also be used to make certain transportation lanes unavailable and measure its impact.
This article is part of the series Immediate Supply Chain Actions to Take Amid COVID-19.