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Strategic Sourcing

Supply chain analysis projects often focus on exploiting the advantages of new sourcing options, such as off-shoring to lower cost manufacturing facilities, switching to new suppliers, or determining optimal customer servicing assignments. Each of these options presents tremendous cost-saving opportunities for the business, but each also carries their own unique risks.

Cost vs. time, inventory vs. service, fixed costs vs. variable costs. The question in each case is, “Which are the correct sources for my business?” The real task for strategic supply chain design is to identify and quantify the trade-offs implicit in each option.

The LLamasoft strategic sourcing solution has been used in each situation to help companies define and quantify the alternatives in support of their business strategy. Supply Chain Guru enables users to model the entire supply chain network to determine how sourcing decisions will affect business as a whole.

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