What is a supply chain network design? Why is a supply chain network design necessary?

Supply chain network design, commonly known as strategic supply chain planning, refers to modeling and constructing the supply chain. It helps companies determine the expenses and time taken to deliver the services and goods to the market with the help of resources available within an organization. 

Supply chain network design is used to analyze and assess the storage and movements of raw materials. Besides, these networks determine the movement of work-in-process inventories and finished goods from the source of origin to the final consumption stage. The framework covers steps like control, implementation, and planning involved in supply chain operations.

A supply chain network design aims to evaluate the programs and policies of companies. They help companies to achieve targets and accomplish long-term goals. A supply chain network design can impact different functional areas and businesses units of a company. 

Designing a result-oriented supply chain network is important to evaluate consumer satisfaction levels and supply chain efficiencies. An optimal design allows companies to accomplish their long-term strategies and objectives. Several functional areas, as well as business units of a company, are affected due to the network design projects. 

The steps involved in designing a supply chain network

To design a supply chain network, companies should follow these below-mentioned steps to attain the best results:

• Listing down the business’s goals and objective
• Defining the project’s scope within real-time 
• The type of analysis that should be carried out must be defined
• The variety of tools that should be used should be determined accordingly
• Eventually, the project completion stage will be involved 

Supply chain planning involves three levels, namely strategic, tactical, and operational. Strategic planning covers market factors, technical changes, and future planning. Tactical planning focuses on brief supply, demand, and inventory management processes. Operation planning can be measured as demand fulfillment, production, transport, and scheduling.