Supply Chain Design for the Retail and Grocery Industries
In an environment where demand is down and product preferences change rapidly, retailers are being asked to become more efficient and reduce cost-to-serve.
Couple that with a need to adapt to increasing demand for web purchases and a desire to capture new markets like China, and you have a very complex set of supply chain conditions. On top of that, the grocery industry needs to plan for many products that have a short shelf life and require refrigerated transport.
LLamasoft Supply Chain Guru supports the retail and grocery industries with industry-specific solutions. For instance, product decomposition optimization is used to create SKU specific flows from vendor to store that minimize a product’s total landed cost.
Network optimization helps identify strategies for improving store sourcing and inbound transportation costs based on required service constraints. It is also useful in evaluating multi-channel analysis to understand how to manage e-commerce, brick and mortar and third-party channels that can minimize overall costs while meeting unique demands in each channel.
Inventory optimization helps users evaluate vendor and retail stocking points to minimize working capital across the supply chain.
Multi-stop direct store delivery models are challenging to model effectively using optimization-only techniques. Enterprise simulation can help users predict the true costs, fill rates, and on-time deliveries associated with different supply chain network designs.