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.

White Paper: Omni-Channel and Beyond: 9 Strategies for Retail Supply Chain Design

White Paper: Omni-Channel and Beyond: 9 Strategies for Retail Supply Chain Design

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.

“…The benefits of the [LLamasoft] relationship are primarily strategic: It provides us with access to technology, the ability to co-develop innovative solutions, and potentially significantly reduce our supply chain’s carbon footprint.”
— Steve Hochman, Head of Supply Chain Planning, EMEA Nike
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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.

Explore LLamasoft supply chain design solutions:

Network Optimization
Multi-Echelon Inventory Optimization

Product Flow-Path Optimization
Transportation Network Design
Production Footprint Optimization
Sales and Operations Planning
Cost-to-Serve Optimization
Risk Analysis and Contingency Planning
Strategic Sourcing
GHG Emissions Modeling

retail supply chain design

Datasheet: Supply Chain Design for the Retail Industry