Supply chains are coming under increased scrutiny as companies seek cost-effective solutions to secure the supply of raw material and the delivery of finished goods to the point of consumption in an ever-changing market.
The supply chain director is required to develop a strategy that will reliably meet the anticipated needs of the business ensuring that growth, customer service, and market reach can be obtained in a cost-effective manner.
Evaluating a supply chain strategy by trial and error experimentation or adopting a strategy based on an oversimplification of the problem in a spreadsheet is a risky approach.
Simulation takes the risk out of change by accurately taking into account variability, uncertainty, and complex interdependencies between processes.
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Simulation enables both the designing and testing of warehouse strategy in a virtual and therefore risk-free environment.
It is capable of replicating all the warehouse processes and can test the design as it would really operate without oversimplifying the problem.