One technology enabling this expanded scope of supply chain design is cloud technology. By removing the barriers that have traditionally limited supply chain design to a desktop application used by a single modeler, solving of models in the cloud is revolutionizing supply chain design. Now companies can evaluate more complicated models and multiple scenarios—and do it in a fraction of the time, without expanding IT infrastructure expense. Combine cloud solving with a centralized enterprise modeling platform that lets all modelers share information and models and you create a level of supply chain design capability never possible before.

Using these technologies, companies can now create realistic models of their entire enterprise at the SKU and individual transaction level of detail. You can imagine the kind of doors this opens—it enables more accurate and informed decisions on a variety of topics such as near-shoring/off-shoring, omni-channel distribution, mergers and acquisitions, production footprint and risk strategy.

Just creating a baseline digital model of the supply chain is potentially eye-opening and powerful for many companies. This digital model includes everything from where supplies originate all the way through manufacturing and distribution and out to the point of demand. Modeling the operation as it exists today can reveal significant opportunities for cost savings just by eliminating inefficiencies. Then, by utilizing continuous scenario analysis, companies are able to determine the real cost and service effect with questions like: