This webinar will discuss scenario planning and modeling for supply chain resilience. The VP of Global Supply Chain Optimization at RGP will cover:
1) What scenario planning is and how disruptions can impact logistics performance.
2) Why planning for supply chain disruptions is important given changes in distribution models, customer expectations, and technology.
3) How technology has influenced scenario-based modeling and examples of scenario planning solutions for resilience.
Case studies will also examine how optimizing facility locations and product flows through strategic scenario planning can make supply chains 80% more cost-effective.
4. VP of Global Supply Chain Optimization at RGP
30 years of industry experience across multiple global markets, having worked
with over 60 companies/logos in the past 10 years.
Previous positions include Chief Operating Officer, President, Vice President,
Regional Operations Engineering Manager, Facilities Manager, Logistics
Manager, and Senior Manager.
6. What is Scenario Modeling?
6
Current
State
Time & Results
Value Drivers
External
Forces
Critical
Uncertainties
Trigger Points
Observable
Environment
Best Case
Scenario
Worst Case
Scenario
Baseline
A
B
Stochastic Optimization
Robust Optimization
Multi-Echelon Optimization
Customized Optimization
1. Strategy Planning
2. Innovation Thinking
3. Scenario Simulation
4. Scenario Learning
5. Alternative Futures
6. Strategy Execution
7. How Can Disruptions Impact Supply Chain Performance?
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ESG and regulatory compliance policies violations
Complexities in Supply Chain Networks Create Vulnerabilities to Performance
Revenue and financial loss; increased operating costs
Rising customer expectations; poor customer experience
Longer lead times due to supply shortages
Final mile delivery bottlenecks and delays
Decline in market share and loss of competitive advantage
Procurement and sourcing challenges
8. A Historical Perspective on Major Supply Chain Disruptions
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2000
Firestone
& Ford recall
on 6.5M tires
2004
Oil Tanker runs aground in Suez
Canal, delaying Sony PS2
shipments to Europe
2005
Hurricane Katrina
2007
Ivory Coast
Toxic waste dump
2008
Global financial
crisis
2009
BP oil rig explosion,
largest oil spill in the US
2011
9.1 earthquake &
Tsunami rocks Japan
2010
Arrow Logistics
collapse
2014
2002
Consolidated
Freightways
bankruptcy
Disney’s Frozen toy
shortage
2016
Rio Olympics
customs issues
2017
UK-based Nano’s
Chicken shortage
2019
New England Freight
files bankruptcy
2020
Covid pandemic shuts
down major global
economic hubs
2021
War in Ukraine
2022
US port
congestion
2023
???
It’s Only
A Matter of When?
9. Why Planning for Supply Chain Disruptions is Important?
9
What Is Changing?
Balanced Distribution Models between
Cost and Service
Migration from Brick-and-Mortar Retail
Stores to eCommerce Shopping
Increase in Mergers & Acquisitions
Shifting Customer Expectations
Technology Enabling Tools and Big Data
How Do Supply Chains Respond?
Globalized Integrated Supply Chains
Outsourcing, Supplier Diversification,
and Near Shoring
Omnichannel Distribution, Inventory
Optimization, Decentralized Hubs
AI Engines, Predictive Analytics, and
Real-Time Product Visibility
Speed and Agility of Logistics and
Distribution Network
13. Case Studies in Scenario Planning for Supply Chain
Resilience
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The number and locations of these facilities
is a critical factor in the success of any
supply chain. In fact, some experts suggest
that 80% of the costs of the supply chain
are locked in with the location of the
facilities and the determination of optimal
flows of product between them. (This is
similar to the notion from manufacturing
that you lock in 80% of the cost to make a
product with its design.) The most
successful companies recognize this and
place significant emphasis on strategic
planning by determining the best facility
locations and product flows.
Source: NETWORK DESIGN: APPLYING OPTIMIZATION
AND ANALYTICS TO THE GLOBAL SUPPLY CHAIN