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Supply Chain Network Design (SNDC) Essay

This is a sample essay on the topic of Supply chain network design. It has become a crucial part of developing and maintaining a supply chain effectively. Adding to that there are various factors that affect its planning and there are various stages of planning.

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Moreover, we will discuss all this in this sample essay today. On top of that, we will also discuss the advantages of strategic supply chain planning. Nevertheless, first of all, we will get to know what the process of supply chain network designing actually is.

What is Supply Chain Network Design?

Supply Chain Network Design also referred to as “strategic supply chain planning”. Furthermore, it is the process of developing and designing a supply chain network in such a way that the fastest and least time-consuming output is obtained while considering the organization’s resources.

Moreover, this process takes into consideration all the factors from raw material, its moment, and storage to inventory. Meanwhile, the thing that is included in the movement of finished goods from point-of-origin to its point-of-consumption.

As a result, supply chain operations’ planning, implementation, and control are covered in this process.

What is the planning process of Supply chain network design?

Most importantly, the main goal of strategic supply chain planning is to find the best supply chain arrangement so that the most suitable way can be considered.

Moving on, the planning process involves three levels which are

  • Strategic
  • Tactical
  • Operational

Hence, these are three levels of the planning process of strategic supply chain planning. So each one is as important as the other. Nevertheless, these three are pillars of planning, and even if you remove one the plan will not come through.

Therefore, we shall discuss each one of these three in detail.

1. Strategic

The strategic part of planning covers things like planning for future operations, market factors that may affect the supply chain, the capacity of supply chain design, and technological advancement and changes.

2. Tactical

Tactical planning is focused on a shorter-term planning cycle. As a result, it’s concerned with demand in the market, inventory management, and timely supply.

3. Operational

As the name of this final part of planning suggests, it covers operational things such as Activities, demand fulfillment, scheduling, production & transport.

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The Factors to consider in the Supply Chain Network Design

First of all, we know there are various factors that affect the efficiency of a supply chain network designing and things that should be considered while planning is:

  • Volatile markets conditions
  • Rapid amendment of client style
  • Constant ambiguity and uncertainty
  • Policies of the presidency of plant location and political climate
  • Local culture.
  • Availability of masterful and unskilled human resources.
  • Industrial relations atmosphere, infrastructural support, energy accessibility.
  • Taxation policies, Incentives, Subsidies, etc across planned plant location
  • Tax structures in numerous market locations.
  • Technology infrastructure standing.

What are the advantages of Supply Chain Network Design?

Firstly, we shall look at the advantages obtained by employing Supply Chain Network Design.

Therefore, these advantages help the organization improve its services and reduced the time and capital needs of the supply chain.

The advantages are:

  • It will improve client service and satisfaction.
  • A good style will minimize the prices and improve service.
  • The successful style will facilitate an organization in achieving a competitive advantage.
  • Reduction in offer chain prices
  • It helps increasing revenue
  • An Offer chain that may support projected company growth
  • Increased property is obtained.

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You can read more articles like Category Management in Purchasing, Time-based Competition in Supply Chain, Just-In-Time (in Operation Management), Hazardous Management Plan, and Conflict Handling Intentions, and many more on our website.

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