Many companies are achieving significant competitive advantage by the way they configure and

manage their supply chain operations therefore it is important to develop a plan that optimizes a
supply-chain.

Design for Logistics

According to Chase, et al. (2006), "the logistics interface with procurement and manufacturing,
as well as with engineering and marketing, can be greatly enhanced by incorporating a concept
known as 'design for logistics' in the early phases of product development. This concept involves
consideration of material procurement and distribution costs during the product design phase.
Given the heavy emphasis on minimizing inventory and handling and in efficient supply chains,
how a product is designed in the design of the components and materials themselves can have a
significant impact on the course to deliver the product" (p. 416).
In designing a plan that optimizes a logistics supply chain, I would incorporate the following:
1. Focus on supply-chain modeling: Increased focus on modeling supply-chain networks,
consolidating shipments, and balancing production, transportation, and inventory.
2. Focus on transportation planning and management: Increased focus on the movement of
vehicles through the logistics network. Vehicle routing and scheduling from a modeling
perspective should be examined and addressed. The diversity of routing and scheduling
problems is elements that make some problem significantly more difficult than others.
There is available software to help implement transportation planning and management.
It would be important to implement this software as a means to continuously improve the
transportation network and maximize the benefits of the modeling technology.
3. Focus on demand planning and pricing: forecasting uncertain events and planning for an
uncertain and constrained environment in which the company can exercise some control
over demand through service and pricing. In addition, it is important to examine the
issues of operating inventories and safety stocks in an uncertain demand and
replenishment environment (Ratliff, 2007).

Value Density (value per unit of weight)

According to Chase, et al. (2006) "A common and important decision is how an item should be
shipped. The way an item is shipped is referred to as the transportation mode. There are five
basic modes of transportation: highway, rail, water, pipeline, and are. Although it may seem
oversimplified, the value of an item per pound of weight─value density─is an important measure
when deciding where items should be stocked geographically and how they should be shipped"
(p. 417).
Consequently, in designing a plan to optimize the supply chain, I would incorporate the
following:
1. Accurately assess the company's existing and future product portfolio, the sources of
value creation within the supply chain, and the fit of its people and sites.
2. If a company refused to fulfill future requirements, the supply chain should consider
the following: demand synchronization and strategic sourcing, scientific
manufacturing, new product and process development, restructuring and asset
rationalization, and techniques for extending their reach to the customer.
3. The scale of change that is required depends on three factors: the depth and length of
a company's research and development productivity gap, the pace of technological
progress, and the length of time it takes management to act.
4. To optimize this supply chain, there are three stages a company must take over a time
span of approximately 5 to 6 years:
a. Step one would address the basics: strategy formation; the elimination of
products and assets that are on likely to comply; the introduction of six
Sigma manufacturing techniques; and the identification of key technologies
and partners.
b. Step two focuses on asset rationalization, with the first wave of site disposals
and commissioning of smart factories; the reengineering of new product
processes; innovations in channel management.
c. Step three covers the renewal of the remaining asset base; widespread use of
channel management and the embedding of risk management procedures.