MANASSAS, VA--(Marketwire - Oct 17, 2012) - INSIGHT, Inc., a top international provider of supply chain planning solutions for the world's foremost companies, announces that president, Jeff Karrenbauer, recently participated in a webinar on supply chain network design on the Supply Chain Digest Video Channel. The webinar, "Supply Chain Network Design and Analytics: Where the Real Money Is," explained how supply chain network design strategy is much more than just determining the number and location of distribution centers.
"Many businesses regard their supply chain as static, so they create a network design model, run a few exercises, put it on the shelf, break up the team, check the box for management, and don't look at it again for five or more years," said Dr. Jeff Karrenbauer, president of INSIGHT, Inc. "This 'Big Bang Study' approach is exceptionally shortsighted. Supply chain designs must be constantly reviewed because they are affected by changing customer demand patterns, product introductions and deletions, new competitors entering the market, freight cost changes, facility status changes, raw material sourcing renegotiations, manufacturing capacity modifications, and much more."
Jeff also pointed out that many strategy analyses limit the scope to the number, location, size and mission of Distribution Centers (DCs), together with customer service tradeoffs. The implicit assumption is that strategy begins and ends with DC location decisions, a perspective which is clearly wrong and hopelessly outdated. A genuine supply chain analysis for a manufacturer will include a detailed representation of procurement and manufacturing locations, costs, capacities, missions and alternatives, inventory policies and, as applicable, international considerations such as port locations, duties and taxes. This comprehensive scope enables the analysis to include issues such as strategic sourcing, mergers and acquisitions, customer profitability (cost to serve), energy/carbon footprint/sustainability, supply chain vulnerability/hardening, master capacity planning, transportation policies, international trade, long range planning, seasonal demand/supply, product introductions/deletions, and supply chain/marketing integration. CPG, pharmaceutical, petrochemical, electronics and other industries are finding that these areas are where the savings can be found.
"The return on investment for utilizing INSIGHT's solutions is remarkable," adds Dr. Karrenbauer. "Savings often run into many millions of dollars and overall profitability is substantially enhanced. This, in turn, directly impacts return on shareholder equity, a fundamental performance metric of the enterprise."
About INSIGHT, Inc.
INSIGHT, Inc. provides optimization-based supply chain analytics and consulting services to meet today's dynamic business challenges. Founded by supply chain and operations research experts in 1978 to apply world-class technology with intelligence and rigor to decision making, INSIGHT solves the complex supply chain strategic, tactical, and financial planning management issues of the world's foremost companies, including many of the Fortune 100 firms, such as ExxonMobil, Nestle, and BASF. Our software and services help firms minimize costs, maximize profits, free up capital, streamline operations, and increase customer service levels. For more information, please visit us on the Web at http://www.insightoutsmart.com.