Article: Redesigning Your Supply Chain

By Milind Patil, Patni Computer Systems Ltd.

In recent years, Supply Chain Management has received a lot of attention due to the extensive globalization of the businesses across the sectors. Designing or redesigning the physical Supply Chain to achieve certain business objectives is therefore becoming more and more important.

As companies are sourcing, making and delivering products and services across the globe, factors such as revisions in local taxes, the signing of trade agreements, and mergers and acquisitions force decision makers to rethink variables like fixed costs in the Supply Chain and variable costs like transportation and warehouse operating expenses. Over time, products get added and some products become obsolete. As a result, the old design of a Supply Chain becomes redundant. Thus, structural changes in the Supply Chain, through physical configuration and reconfiguration, are required to help companies stop revenue leakages.