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Supply Chain Design for High-Tech/Electronics Industries

A leading provider of IT storage hardware utilized network optimization in LLamasoft Supply Chain Guru to help re-evaluate its offshoring versus near-shoring strategy. The company was able to analyze the potential cost and service impact moving manufacturing back to geographies where their customers are located and away from centralized solutions in low-cost regions in Asia and elsewhere.

High-tech manufacturing companies are using LLamasoft supply chain design software to tackle industry challenges such as:

  • Off-shoring vs. near-shoring—what’s the best choice? Though analysis of the tradeoffs between cost and service levels associated with alternative scenarios, companies can make intelligent decisions about sourcing and manufacturing products in the best location to handle market demand.
  • Right-size inventory to meet desired service levels at lowest possible cost. LLamasoft Supply Chain Guru inventory optimization gives companies a way to lower working capital while increasing service levels. This is achieved by applying better-fitting inventory curves on demand in order to “right-size” inventory levels across echelons.
  • What is the optimal postponement strategy? LLamasoft can help companies ascertain the best location and stage to transform products using postponement strategies, including optimal transportation frequency and mode combination in order to meet service levels at lowest possible cost.
  • Supply chain risk management and contingency planning – LLamasoft enables companies to create living models of the end-to-end supply chain to mitigate risks by visualizing current inefficiencies, analyze the impact of changes to the supply chain through scenario analysis, and be able to react quickly and intelligently to unplanned events such as fires or floods.

LLamasoft customers often identify 10 to 20 percent cost savings while maintaining or improving customer service levels through strategic supply chain design solutions.