Supply Chain Network Design (SNDC) also known as ‘strategic supply chain planning’ is the process for building and modelling the supply chain to understand the costs and time to bring goods and services to market within an organizations available resources.
SCND covers all the movements and storage of raw materials, work-in-process inventory and finished goods from the point-of-origin to the point-of-consumption. It covers the planning, implementation and control of supply chain operations.
Planning processes in SCND aim at finding the best possible supply chain configuration so that all operations are performed in an efficient way.
Three planning levels are distinguished depending on the time horizon.
Volatile markets, rapidly changing consumer tastes, constant ambiguity and uncertainty are quickly making traditional linear supply chains obsolete. Their shortcomings are apparent in their inability to keep pace and meet the needs of diverse customer, let alone detect promising new customer segments. Their responsiveness is further compromised by fragmented supply networks and operational inefficiencies that hinder scalability.