The choices available for purchasing and supply are exponential in global value networks.  Supply chain costs increase, but due to their complexity, they often go  unanalyzed.

An optimal delivery strategy between manufacturer and customer reduces supply chain costs. Optimal supplier selection can help you seize the opportunities of global procurement at minimal cost. To identify potential cost savings, the total costs that would be incurred in alternative supply chain configurations can be analyzed with the cost-to-serve approach (also referred to as the total landed cost approach).

An overall cost-optimization analysis creates transparency and allows essential cost drivers to be identified

The cost-to-serve approach makes it possible to find major cost drivers and serves as a basis for identifying and cutting costs. Considering all the relevant types of costs such as transportation, handling, warehousing, inventory, and container and administrative costs along the supply chain establishes a basis for making objective decisions.

4flow uses the standard software 4flow vista®, which can be used both for manufacturing businesses, as well as for the retail and the consumer goods industry. The following benefits are possible:

  • Objective and comprehensive decision-making support tool
  • Increase of transparency in cost structure along the supply chain
  • All relevant types of costs and cost drivers considered
  • Analysis of complex, multi-layer supply chains including value-adding steps
  • Simulation of impact that supply frequency and supply route have on inventory

 

 

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