Network
Design
Sales & Ops
Planning
Transport
Modeling
Inventory
Modeling
Strategic
Sourcing
Product Intro/
Phaseout
M&A
Rationalization
Risk
Analysis
Greenhouse
Gas Analysis

Strategic Sourcing
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?"

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.
Supply Chain Guru®
Complete User Interface for Strategic Sourcing


Related Information

Technology:
  • Network Optimization
  • Inventory Optimization
  • Enterprise Simulation
  • Visualization and Analytics
Downloads:
  • Whitepapers
  • Trial Software

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. 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.