Integrated Network Design and Simulation Solutions Win
The Advanced Component Division (ACD) of a world leader in heavy equipment manufacturer has laid out a strategic initiative for their global supply chain to increase supplier shipper performance to greater than 95 percent while simultaneously compressing supply-base response times by 20 percent. To achieve these goals ACD needs to conduct ‘what if’ analysis to rationalize their manufacturing, distribution and supplier footprint, perform greenfield analysis to determine the best locations for new manufacturing sites and develop methods to ensure that their sourcing of materials and parts is strategically executed.
To help them achieve their strategic goals, the manufacturer utilized LLamasoft® Supply Chain Guru®. LLamasoft solutions experts were also brought in to assist with the modeling and to develop methods that would allow the manufacturer to integrate the Supply Chain Guru models with their SAP data and existing simulation technology. As a proof of concept the company decided to model the supply chain of a key transmission component, an assembly finished in the United States but made up of sub-assemblies and parts from six different ACD plants and over 50 suppliers, spread across the globe. Once finished, the part is shipped to four of the manufacturer’s facilities in Asia, the United States and South America.
Using the model, the company was able to create a methodology and architecture for developing a scalable optimized supply chain design solution which could then be integrated into the company’s manufacturing production simulator. In the process the company determined that the Supply Chain Guru network simulation capacity was superior in power, range and robustness to adapting a manufacturing simulator to do the analyses of a complex, multi-echelon network.