Supply Network Design Definition

A supply network is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply network design is the process of creating or improving this system to achieve desired goals.

The main goals of supply network design are to improve performance measures such as cost, quality, delivery time, and flexibility. Other objectives may include reducing risk, increasing agility, and improving sustainability. The specific goals will vary depending on the industry and the products or services being supplied.

To achieve these goals, supply network design must take into account many factors such as customer demand, supplier capabilities, manufacturing processes, distribution channels, transportation networks, and government regulations. The challenge is to find the best combination of these elements to create an efficient and effective system.

The first step in supply network design is to understand the current system and its limitations. This requires gathering data on all aspects of the system including suppliers, customers, products, activities, information flows, and resources. Once the current system is understood, the next step is to develop goals and objectives for the new system.

After goals are established, alternative designs can be generated and evaluated against the criteria established in the previous step. The best design is then selected and implemented. Once implemented, the new system should be monitored and continually improved to ensure that it meets the ever-changing needs of businesses and consumers.