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Supply Chain Network Optimization Checklist

Unlock peak efficiency! Our Supply Chain Network Optimization Checklist guides you through evaluating & improving your network for reduced costs, faster delivery, and greater resilience. Identify bottlenecks & ensure seamless flow.

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Network Design Assessment

1 of 10

Evaluate current network structure and identify areas for improvement in facility locations, transportation routes, and distribution channels.

Number of Distribution Centers

Average Distance Between Facilities (miles)

Primary Transportation Mode

Current Network Challenges

Average Lead Time (days)

Network Complexity Level

Notes on Geographic Coverage

Facility Location Analysis

2 of 10

Assess the effectiveness of current facility locations based on factors like customer proximity, transportation costs, and labor availability. Consider optimization possibilities.

Current Facility Count

Location of Primary Distribution Center

Average Delivery Distance (Miles)

Proximity to Major Transportation Hubs

Land Costs per Square Foot (USD)

Labor Availability Rating

Current Labor Cost Analysis and Trends

Average Rent/Lease Costs (USD)

Transportation Mode Optimization

3 of 10

Analyze the mix of transportation modes used (e.g., truck, rail, air) and evaluate opportunities to reduce costs and improve transit times. Consider fuel efficiency and sustainability.

Current Truck Transportation Cost (USD/Mile)

Current Rail Transportation Cost (USD/Mile)

Current Air Freight Cost (USD/Package)

Primary Transportation Mode for Region A

Transportation Modes to Evaluate for Cost Reduction

Date of Last Transportation Cost Analysis

Notes on Current Mode Selection Criteria

Inventory Placement Strategy

4 of 10

Review inventory levels and placement across the network to minimize holding costs and ensure product availability. Consider safety stock levels and demand variability.

Safety Stock Level - Product A (Units)

Reorder Point - Product B (Units)

Primary Distribution Center for Product C

Average Lead Time (Days) - Product D

Inventory Allocation Strategy - Product E

Maximum Inventory Holding Cost (%)

Distribution Channel Analysis

5 of 10

Examine distribution channels (e.g., direct-to-consumer, retailers, wholesalers) and identify opportunities for improved efficiency and customer reach.

Percentage of Sales via Direct-to-Consumer Channel

Percentage of Sales via Retail Partnerships

Average Order Value for Online Sales

Primary Distribution Channel Focus (Current)

Current Distribution Channel Challenges

Describe any specific trends observed in channel performance (e.g., shift to online, decline in retail)

Technology Integration

6 of 10

Assess the use of technology (e.g., TMS, WMS, network modeling software) to support network optimization efforts and data visibility.

TMS (Transportation Management System) Utilization

WMS (Warehouse Management System) Integration

Real-time Visibility Data Sources (Number)

Network Modeling Software

Describe Data Integration Challenges

ERP System Integration

Date of Last System Integration Review

Risk Mitigation & Resilience

7 of 10

Evaluate potential disruptions to the network (e.g., natural disasters, supplier issues) and implement strategies to mitigate those risks and improve resilience.

Safety Stock Levels (Days)

Potential Disruption Types

Contingency Plan Details (Supplier A)

Last Review Date of Contingency Plans

Criticality of Affected Product/Service

Supporting Documentation (e.g., alternative supplier contracts)

Cost Analysis & ROI

8 of 10

Track costs associated with the current network and estimate the potential return on investment (ROI) for optimization initiatives.

Current Annual Transportation Costs

Projected Annual Transportation Cost Reduction (Optimized Network)

Current Annual Warehousing Costs

Projected Annual Warehousing Cost Reduction (Optimized Network)

Initial Investment Costs for Network Optimization

Projected Annual Inventory Holding Cost Reduction

Estimated Payback Period (in years)

Method Used for ROI Calculation

Performance Measurement & KPIs

9 of 10

Define key performance indicators (KPIs) to track the effectiveness of the optimized network and identify areas for continuous improvement (e.g., lead times, costs, service levels).

Average Order Lead Time (Days)

Transportation Cost as % of Revenue

Inventory Turnover Rate

On-Time Delivery Rate (%)

Perfect Order Rate (%)

Current KPI Tracking Frequency

Date of Last KPI Review

Sustainability Assessment

10 of 10

Evaluate the environmental impact of the supply chain network and identify opportunities to reduce carbon footprint and improve sustainability.

Carbon Footprint (Current Year)

Percentage of Renewable Energy Used

Sustainable Packaging Materials Used?

Supplier Sustainability Standards?

Description of Sustainable Transportation Initiatives

Waste Reduction Target (% Reduction)

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