Case Study

Building The Best Designed Supply Chain Key To Successful RFPs

Model and track each individual procedure and move through the network to meet quality control, service rate standards and flow targets

Optimize to ensure efficient placement and utilization of resources

Use Supply Chain Guru simulation technology to confirm the design using real-world data

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Building The Best Designed Supply Chain Key To Successful RFPs


A Canadian medical testing company was expanding rapidly and bidding to become the sole government approved provider for a large province. Facing a potential three-fold increase in business volume, the company needed to redesign critical aspects of their service network. Company labs, located in hospitals and in free-standing locations, were already performing millions of tests a year ranging from simple blood work to highly sophisticated evaluations. With a business goal to provide 98 to 99 percent service rates. To understand the impact of the possible expansion the company needed a model that could address the proper place- ment and capacity of testing labs, help create resource allocation plans and identify the costs associated with delivering the required service levels in the expanded network.


In order to model and design a network that could handle a million tests and up to 10-12 million testing actions per week, the company turned to LLamasoft® Supply Chain Guru®, supply chain design software that can perform both supply chain optimization and simulation on the same platform. LLamasoft consultants constructed a model that represented all the operations involved in collecting, sorting and transporting the testing material as well as the details of lab capacity, staffing requirements and equipment needs along with all associated costs. Using this model as a baseline, the LLamasoft team then ran optimizations, analyzed various scenarios and was able to simulate promising new network designs.


With the Supply Chain Guru model of the medical testing company’s network—from collection to test completion—LLamasoft was able to design a modified network to overcome potential weak points in existing processes and network design. The analysis helped deter- mine the best locations for new labs as well as their capacities to create a network that could deliver the needed service levels at the best possible costs. Armed with this detailed plan of action, the testing company did win the new testing contract and now provides testing services in several Canadian provinces.

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