{"id":2193,"date":"2024-11-26T12:02:05","date_gmt":"2024-11-26T11:02:05","guid":{"rendered":"https:\/\/tenglerconsulting.com\/?p=2193"},"modified":"2026-02-06T09:30:37","modified_gmt":"2026-02-06T08:30:37","slug":"optimize-your-network-to-sustainably-boost-your-supply-chain-performance","status":"publish","type":"post","link":"https:\/\/tenglerconsulting.com\/en\/optimize-your-network-to-sustainably-boost-your-supply-chain-performance\/","title":{"rendered":"Optimize your network to sustainably boost your supply chain performance"},"content":{"rendered":"

[vc_row section_type=”fullwidth” height_ratio=”60″ padding_top_multiplier=”” padding_bottom_multiplier=”” rc_bg_type=”image” rc_bg_image=”2242″ rc_bg_color_overlay=”black” columns_gap=”none”][vc_column][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”3x” padding_bottom_multiplier=”4x” columns_gap=”60″][vc_column width=”2\/3″]


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Optimize your network to sustainably boost your supply chain performance<\/h1>\n<\/span><\/h1>[\/vc_column][vc_column width=”1\/3″][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”” padding_bottom_multiplier=”” columns_gap=”60″][vc_column]
<\/span><\/div>[\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”3x” padding_bottom_multiplier=”2x” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]01<\/span>[\/vc_column_text]

Performance, Performance, Performance\u2026<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]Daily, new targets as well as new expectations on how well one should perform to be competitive in a market are set. It is important to align those targets, with realistic anticipations as well as with the company\u00b4s strategy. A key factor which can influence a company\u2019s performance is the network, which can be limited to an internal network of only warehouses and factories but can extend also to the network of suppliers and customers. Based on our project experience, we will discuss possible strategic measures which can successfully boost your supply chain performance.[\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_bottom_multiplier=”2x” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]02<\/span>[\/vc_column_text]

What can be optimized in a physical network?<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]A physical network based on the strategic targets of the company can be optimized either by changing the number of warehouses<\/strong> or improving the geographical positions<\/strong> of the current setup. The above can either adapt the reach of the network or the number of the locations. On the other hand, and with proper inventory management<\/strong>, the storing capacity<\/strong> of each warehouse can be adapted to an optimal point to allow synergies and increase efficiency.[\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]03<\/span>[\/vc_column_text]

Which paths can a network redesign follow?<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]Depending on the strategy that a company follows, it is possible to base a network redesign<\/a> on costs, service, ecological footprint or on a hybrid model that can have multiple optimization targets. To get a better picture as to which of the above suits you better, we run a simulation and based on the results you can see the benefits and drawbacks of each scenario and make a best-fit decision.<\/p>\n

Cost optimization
\n<\/strong>There are various methods to reduce your overall network costs with logistics costs usually having the biggest impact. After the simulation, you can determine where the optimal locations to place your warehouses are. The locations vary depending on the target of the simulation. For instance, different locations are proposed for transportation cost reductions, compared to locations, aiming to reduce warehousing costs.<\/p>\n

Footprint optimization
\n<\/strong>Social responsibility is a particularly important subject, which is getting more and more attention over the last years. Society is expecting companies to be sustainable and considerate towards the environment. A study has shown that more than 80% of consumers are ready to pay more for sustainable products.[1]\u00a0Footprint optimization focuses on building a sustainable network with as low emissions as possible, while considering the engagement of the local communities and the availability of ecological means of transport.<\/p>\n

Service optimization
\n<\/strong>Clients are expecting to get the best service. Unfortunately, this is not fully achievable in every situation and therefore after a proper supply chain segmentation<\/a>, a company can decide on the segments that should get the best service level. According to the segmentation results, a network can be customized to the needs of each segment, while focusing on meeting the target service level.<\/p>\n

Hybrid optimization
\n<\/strong>A hybrid network optimization comes with much higher complexity. It starts with the definition of the right optimization target that balances out service, costs and footprint. Therefore, before designing such a network, it is crucial to align the company’s strategic targets with the goals of the network. If this is not done properly, there is a risk that the network will fail to support daily operations and have negative effects on the supply chain’s performance.[\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_bottom_multiplier=”2x” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]04<\/span>[\/vc_column_text]

Conclusion<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]Before taking a step towards changing your network, you should really know where you want to go, why you want to go there and what you expect when getting there. Network optimization & simulation<\/a> if used correctly is a tool that will help you get competitive, increase your operational efficiency and meet the needs of your clients, because apart from fast deliveries, it is crucial to create a robust network that can also sustain these requirements. We as consultants are here to guide you through this transformation, while setting you up for success.<\/p>\n

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Source:<\/strong>
\n[1] PwC, 2024. Consumers willing to pay 9.7% sustainability premium, even as cost-of-living and inflationary concerns weigh: PwC 2024 Voice of the Consumer Survey.<\/a> [Accessed: 3 May 2024].[\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_bottom_multiplier=”3x” rc_link_color=”primary-1″ rc_link_hover_color=”black” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]05<\/span>[\/vc_column_text]

Further insights<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]For more information on the possibilities of supply chain optimization, see our other insights<\/a>.[\/vc_column_text][\/vc_column][\/vc_row][vc_section disable_element=”yes” el_id=”author”][vc_row section_type=”fullwidth” padding_top_multiplier=”” padding_bottom_multiplier=”” columns_gap=”60″][vc_column]
<\/span><\/div>[\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”3x” padding_bottom_multiplier=”3x” columns_gap=”60″ equal_column_height=”equal”][vc_column width=”1\/3″ full_height=”yes”]
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\"\"<\/div><\/div>\t<\/div>\r\n\t<\/div>\r\n<\/div>\r\n[\/vc_column][vc_column width=”2\/3″ full_height=”yes”][vc_row_inner height_ratio=”50″][vc_column_inner full_height=”yes”][vc_column_text css=”” el_class=”special-link”]Ready to strengthen your supply chain\u2019s sustainability through a stronger integration?<\/strong> Contact us at office@tenglerconsulting.com<\/a> to discuss how we can develop a planning framework\u2014supporting sustainable, efficient, and resilient supply chain practices made to your business needs.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner height_ratio=”50″][vc_column_inner vertical_content_position=”bottom” full_height=”yes”][vc_column_text css=”” text_style=”small-text”]About the author<\/strong>[\/vc_column_text]
<\/div>

Daria Reshetniak<\/span><\/h3>[vc_column_text css=””]T: +43 1 234 56 78
\nE: daria.reshetniak@tenglerconsulting.com<\/a>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][\/vc_section][vc_section el_id=”contact”][vc_row section_type=”fullwidth” padding_top_multiplier=”” padding_bottom_multiplier=”” columns_gap=”60″][vc_column]
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Do you have questions or comments on how to design a new network? Contact us at\u00a0office@tenglerconsulting.com<\/a>\u00a0or connect with us on\u00a0LinkedIn<\/a>.<\/span><\/h3>[\/vc_column][vc_column width=”1\/4″][\/vc_column][\/vc_row][\/vc_section]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

The future belongs to those who shape it. This article demonstrates how companies can sustainably strengthen their competitive position through an optimized network.<\/p>\n","protected":false},"author":7,"featured_media":2242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-2193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-03-supply-chain-excellence","grve-entry-item","grve-blog-item"],"yoast_head":"\nSupply chain network optimization | Tengler Consulting<\/title>\n<meta name=\"description\" content=\"The future belongs to those who shape it. 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