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Getting Basline Cost Modeling in Supply Chain Network Design Right


Aug. 29, 2016

Using "baseline modeling" to validate that a supply chain network design model is accurately capturiing how a given company's supply chain works is standard practice there days - but does the model accurately reflecting current supply chain costs mean it has it right?

Not so fast, says Tom Nicholas, who works with Dr. Mike Watson's OpEx Analytics firm on supply chain network design projects.


Beware of averages, Nicholas says, as he offers good advice for getting baseline modeling right.

SCDigest editor Dan Gilmore recently discussed all this and more with Nicholas as part of our weekly Supply Chain Video News, from our Supply Chain Television Channel and CSCMP. That interview is excerpted below.

Please view this very interesting and fast-paced video discussion below.

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