Document OverviewBest Practices: Supply Network Optimization in Asset-Oriented Value Chains
Overview This Manufacturing Insights report examines how the asset-oriented value chain (AOVC) companies are using supply network optimization tools to address the strategic and/or tactical planning challenges of managing a complex supply chain. Asset-oriented value chains are characterized by companies that invest heavily in manufacturing plants and produce large volumes of base materials such as chemicals, metals, and pulp/paper. These manufacturers are good candidates for supply network optimization tools because of factors such as complex justifications for new and expensive facilities, regional demand shifts, and ongoing acquisitions and divestitures that strain the existing supply network design. "We recognize SNO can contribute to these manufacturers' strategic goals, by removing inefficiencies in the supply chain, enhancing customer service levels, and smoothing the introduction of new products." — Kimberly Knickle, practice director, IDC Manufacturing Insights
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