How Simulation Optimizes Supply Chains

How simulation optimizes supply chains

Virtual design and construction is influencing supply chain planning more and more.

Written by

American Journal of Transportation

Published

14 December 2023

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TMX Transform, the leading end-to-end supply chain consultancy serving global businesses, today introduced advanced simulation solutions designed to address the challenges of warehouse and distribution center (DC) operations in North America.

TMX Transform's robust, dynamic simulation tools will enable users to visualize, validate and test designs for their complex supply chain environments to ensure success ahead of implementation.

Today's companies need to move beyond the old way of working; using a spreadsheet to model supply chain data and movement isn't going to cut it anymore.

Jeff Bornino, President, North America, TMX Transform

"We're helping customers go further, faster by removing the guesswork from complex 'what if' scenarios. Our approach combines robust supply chain strategies with dynamic technologies to support businesses today and into the future," Mr. Bornino said.

Supply chains are growing in complexity, characterized by intricate dependencies, advanced warehouse automation, improved demand forecasting, and stricter service levels. As a result, businesses need a data-informed approach to DC design that reflects real operations rather than using averages to predict requirements.

Simulation, digital twins, and virtual reality (VR) tools and services provide insights into DC operations and greenfield facilities, helping companies uncover hidden opportunities and make informed strategic decisions. The TMX Transform simulation tool supports:

Network Performance Optimization - Identifies efficient network configurations that minimize costs and maximize service levels through simulation modeling and synthesizing demand.

DC Optimization and Operations Validation - Creates virtual representations of manual and automation DCs to assess performance and to identify gaps, potential issues, and effectiveness of operations.

Automation Feasibility Validation - Creates models of real-world processes through simulation to evaluate the impact of automation on productivity, efficiency, and cost.

In the food and beverage industry, a multinational bottling company partnered with TMX Transform to revamp its supply chain network. By employing network strategies and simulation tools from TMX Transform, the company addressed challenges arising from mergers, supply and demand imbalances, and shifting consumption trends, resulting in a 12% annual cost savings and a 70% reduction in stockholding locations.

North American companies that haven't yet considered automation are lagging behind. We support companies in understanding available technologies and selecting the most suitable for their needs.

Nick De Klerk, TMX Associate Director

"We take pride in being the market leader and are dedicated to helping clients predict, plan, and mitigate risks in automation projects, ensuring a predictable result."

This article was originally published by the American Journal of Transportation on Dec 14, 2023.

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