Supply chain analysis projects often focus on exploiting the advantages of new sourcing
options, such as off-shoring to lower cost manufacturing facilities, switching to
new suppliers, or determining optimal customer servicing assignments. Each of these
options presents tremendous cost-saving opportunities for the business, but each
also carries their own unique risks. The real task for strategic supply chain planning
is to identify and quantify the trade-offs implicit in each option. Cost vs. Time,
Inventory vs. Service, Fixed Costs vs. Variable Costs. The question in each case
is, "What are the right sources for my business?"
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LLamasoft’s strategic sourcing solution has been used in each situation to help
companies define and quantify the alternatives in support of their business strategy.
Our unique technology enables users to model the entire supply chain network to
determine how sourcing decisions will affect business as a whole.
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Supply
Chain Guru®
Complete User Interface for Strategic Sourcing
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Related Information
In under an hour of your time, we can demonstrate how LLamasoft
Technology and Professional Services can help you lower costs, improve service rates,
and reduce risk throughout your supply chain.
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A well-known electronics producer sources many of their components from
Asia and other low-cost countries. These Asian producers provide the lowest cost
solution, but there is often high lead times and low reliability. The team has utilized
LLamasoft’s strategic sourcing solution to model and evaluate all of their sourcing
options, to help quantify the total landed cost of their products, to determine
where their components should best be sourced.
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A large North American grocery store chain has thousands of suppliers
from which to choose. Local suppliers often provide better service but many times
there is a cost premium. Even when the supplier is chosen, the purchasing amounts
are in question because of the quantity-cost breaks offered. The LLamasoft solution
is used to determine the optimal mix of suppliers and is also important for making
buy quantity decisions, based on store and warehouse capacity.
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