ApproachInitially, CSC worked with the client to model the current distribution network and determine cost structures associated with the company’s regional business volumes. Future-state modeling and sensitivity analysis followed, which provided direction on savings opportunities and performance characteristics of future network designs. Once the future network design was established, the team designed new regional and network-oriented business processes and developed business requirements for software to support the new processes. Although the primary focus of the initiative was improved operational performance in the main line of business, the enhanced business and application architecture provides important capabilities that can be leveraged across other lines of business:
• Centralized capture & control of orders across multiple channels & suppliers
• Dynamic, rules-based routing of orders through most efficient fulfillment path
• Network level visibility of demand, inventory, orders and logistics activities
• Scalability to meet growing business volumes
Results
Planned outcomes of the first-phase implementation are:• Regional distribution facilities, operational processes, and supporting organizational design• Metrics framework to track and analyze cross-functional supply chain costs • Newly created Supply Chain Management team to model and design the supply chain network• Supply Chain Application Architecture supporting network-level supply chain management activities• Increased supplier and partner integration.
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