Published: 01 May 2023
Many supply chain organizations don’t track the full value network design studies generate and, therefore, fail to accurately capture and report their ROI. Supply chain leaders can use this research to implement best-in-class value tracking processes, ensuring full recognition for study outcomes.
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Network design initiatives generate far more value than just cost savings. Failing to account for other benefits generated contributes to poor evidence of ROI which, in turn, can hinder future stakeholder investments in network design.
Organizations fail to capture the full value of a network design initiative because often only theoretical modeled savings are tracked. However, tracking this metric alone ignores the full value of what was actually implemented, as modeled savings are typically higher than what is implemented due to real-world constraints.
Overlooked process improvements are often found through analyzing the gap between theoretical modeled value and realized
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