Supply Chain Design

Knowledge Center

Summary, forum, best practices, expert tips and information sources.

35 items • 80.915 visits



What is Supply Chain Design? Meaning.

Supply Chain Design involves the determination of how to structure a supply chain. Design decisions include the selection of partners, the location and capacity of warehouse and production facilities (reduce Bullwhip Effect), the products, the modes of transportation, and supporting information systems.

Four Levels of Supply Chain Improvement

According to Charles C. Poirier and Michael J. Bauer (E-supply chain), a supply chain improvement may occur at 4 levels:

  1. Sourcing and Logistics — The driver is the Vice President of Supply or Sourcing, who focuses on project logistics, inventory and order fulfillment, organized by team and function.
  2. Internal Excellence — The drivers are the Supply Chain Leader (COO) and the Chief Information Officer. The focus is system improvement and process redesign. The tools are best practices, benchmarks and activity-based costing.
  3. Network Construction — The primary drivers are the business unit leaders. Their focus is on forecasting, planning and inter-enterprise. The tools are database mining, electronic commerce and metrics.
  4. Industry Leadership — The drivers are the CEO and the management team. They focus on the network and the consumer. Their tools are virtual information systems, the intranet and the Internet.

Reducing Supply Chain Cost

The AIM & DRIVE method is a system for reducing costs by working with your entire supply chain while improving quality and delighting your end customers. The steps are:

  1. “Agreeing” to manage costs with a supply-chain approach.
  2. “Identifying” where you are incurring costs and which costs you can lower by working cooperatively with your suppliers.
  3. “Measuring” second- and third-level costs.
  4. "Defining” your mutual chief cost drivers and your strategic options.
  5. “Reducing,” altering or removing the operations that create those costs.
  6. “Implementing” your action plan.
  7. “Verifying” the plan by monitoring the costs.
  8. “Eternally” refining your cost structure and sharpening your processes.

Source: Jimmy Anklesaria, Supply Chain Cost Management.

Special Interest Group

Supply Chain Design Special Interest Group.

Special Interest Group (510 members)


Forum about Supply Chain Design. Below you can ask a question about this topic, share your experiences, report a new development, or explain something.

Start a new topic about Supply Chain Design


The 8 Key Supply Chain Processes
To design a supply chain, we need to integrate 8 key processes: 1. Demand planning responsiveness. 2. Customer relationship collaboration. 3. Order fulfilment. 4. Product development launch. 5. M...
Main Steps in Designing a Supply Chain
What are the basic steps for designing a supply chain? Thanks for your help......
The Air Cargo Supply Chain
When a demand on one place is supplied from another place with air transport as the main transport mode, an air cargo supply chain will be compiled. Air transport is relatively expensive, but often th...
Triple-A Supply Chain for Successful Supply Chain Management
Many companies have a strategic focus on finding ways to continuously improve their supply chains. In such SCM, there are usually two main incentives that companies are emphasizing: I. Speed, especia...
Supply Chain Intelligence and Supply Chain Analytics
Probert and O’Regan (2002) discuss the purposes of Supply Chain Intelligence (SPI) in organizations. According to them, supply chain intelligence builds upon data obtained through ERP and SCM applica...
Location Theory of Weber
What is the location theory of business by Max Weber? Describe the theory of location given by Max Weber....
🔥 NEW Types of Supply Chain Management Networks
What are the types of supply chain networks? I ask this because I am having difficulties to select the best network for my organisation....
How is Customer Service Affected by the Structure of a Supply Chain?
In what ways are the various components of customer services affected by the structure of a supply chain distribution network? Thanks for your ideas to get me started with an answer....
Supply Chain Intelligence Architectures
Just as in companies use business intelligence to improve their business performance or productivity, they can also improve their supply chain management processes through supply chain intelligence (S...
The Need for a Collaborative Relationship in Supply Chain Design
When designing a supply chain to develop continuously, there must be some collaborative type of relationship which in the end will bring in mutualism and symbiosis to both parties and long lasting rel...

Best Practices

The best, top-rated topics about Supply Chain Design. Here you will find the most valuable ideas and practical suggestions.

Expert Tips

Advanced insights about Supply Chain Design. Here you will find professional advices by experts.

Three Dimensions of Supply Chain Strategies

Supply Chain Strategy, Supply Chain Design
A supply chain strategy generally consists of three dimensions that need to be taken into account when establishing an e...
Information Sources

Various sources of information regarding Supply Chain Design. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Supply Chain Management: Processes and Types

Supply Chain Management
This presentation elaborates on various Supply Chain Management processes and types. The presentation includes the follo...

Information, Information Flows and Information Technology in Supply Chains

Master Model of Supply Chain Excellence, Supply Chain Software Categories, Supply Chain Information Systems
This presentation elaborates on the role of information in supply chain management. The presentation includes the follow...

Enterprise Resource Planning (ERP): An IT Perspective

Enterprise Resource Planning, Supply Chain Management, Information Technology, IT ERP
ERP in-depth This presentation provides a technical view towards Enterprise Resource Planning (ERP) and includes the fo...

Introduction Into Enterprise Resource Planning (ERP)

Enterprise Resource Planning, Supply Chain Management
This presentation provides an introduction into Enterprise Resource Planning and includes the following sections: 1. Wh...

Supply Chain Sustainability

Triple Bottom Line, Supply Chain Management
Sustainability in supply chains, including the following sections: 1. Overview 2. What is demand chain? 3. The supply...

How to Design and Build Sustainable Supply Chains

Sustainability, Supply Chain Management
The presentation elaborates on ways to develop sustainable supply chains. The presentation includes the following sectio...

Introduction to Supply Chain Management

Supply Chain Management, Supply Chain Design
While Porter’s value chain is a firm-level supply chain, this presentation describes supply chain management in a global...

Introduction to (Sustainable) Value Chain Analysis

Initial Understanding Value Chain Analysis
Value Chain Analysis involves analyzing three things to identify improvement areas / projects: 1. Material Flow - The f...

Supply Chain Management Performance Measurement & Metrics

Supply Chain Management, Performance Management, SCOR Model, Balanced Scorecard
Presentation about Supply Chain Management and its Performance Metrics. The presentation includes the following sections...

Achieving Strategic Fit - Supply Chain Strategy

Supply Chain Strategy, Supply Chain Design
Presentation aims to explain how companies can achieve strategic fit through their supply chain strategy. The following ...

Research Links

Jump to further research sources regarding Supply Chain Design.








Compare with: Value Chain  |  3rd Party Logistics (3PL)  |  Vendor Managed Inventory  |  Cross-Docking  |  Design Thinking

Special Interest Group

Do you know a lot about Supply Chain Design? Become our SIG Leader and gain worldwide recognition as an expert.


Return to Management Hub: Strategy & Innovation  |  Supply Chain & Quality

More on Management  |  Return to Management Dictionary


This ends our Supply Chain Design summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2023 12manage - The Executive Fast Track. V16.1 - Last updated: 28-5-2023. All names ™ of their owners.