Agility of a logistics chain may be defined as the ability to operate in uncertainty whilst maintaining stable level of productivity. The external uncertainties are related to demand volume, production mix, and technological changes. These problems challenge today in many industries due to international trade and increasing lead-time demands.
 

Towards defined supply chain architecture

Building fast response, low inventory chains, is a question of competitiveness especially in the electronics industry, where short life cycles emerge with high fluctuations. Also companies operating in food business: retail, wholesale and production, are pressured by high productivity demand combined with fast inventory cycle requirement.

The value of lead-time is an increasingly important competitive factor in many industries. Management of capacity represents a way to improve lead-times and benefit from fast response. Traditional cost accounting methods do not always justify better lead-times since it may mean lower capacity utilization and thus higher unit costs.

Many solutions have been developed for industries related to fast moving consumer goods. Examples of applying the principles of agile or fast response supply-demand principles in the literature deal with computer peripherals and grocery goods. Industries with low production volume combined with high product mix do not have so many applications. These types of industries, such as machine building, construction projects, energy and infrastructure systems, and heavy machinery, are very important. ASDN software has a variant analysis functionality which allows modelling complex products and product portfolios.

Software approach

This research project that developed the ASDN software addresses how quantitative modeling techniques, such as system dynamics simulation, may be used for improving the purchasing and distribution logistics in project driven electrical utilities industries.

Complex non-linear systems including trade-off situations between may be represented in practical way by using computer simulation. Running different scenarios with a group of decision makers may improve managerial implications.

Computer based quantitative modeling tools enable opportunities to research new value adding strategies for companies operating in logistics. Additionally, many general-purpose models may be extended to other industries and applications of similar type.

ASDN Improves the business 

As the pilots have proven the ASDN software can help managing global supply-demand networks to be more agile and time responsive. The ASDN Logistics Analysis software aims:-

1. To support modelling the characteristics of the domain: global investment good delivery.
2. To present a rapid modeling tools for screening and presenting the network-level controls.
3. To integrate product design with logistics decision making
4. To suggest optimisation approaches for faster response and improved financial performance.

Got interested what ASDN can do for your network? Download the Quick Guide and the software from sourceforge.