15. Supply Chain Network Design and Analysis

Network design and analysis are integral parts of our procurement capability model discussed in Chapter 1, “Purchasing, Procurement, and Strategic Sourcing.” A number of principles have emerged to guide the procurement and sourcing teams in their design and analysis of the network in which they work. These can be summarized as the Four Rs1 (responsiveness, reliability, resilience, and relationships). Let’s look at how each influences strategic sourcing and the procurement team’s thinking, planning, and control.

Responsiveness

The ability to respond and react to customers’ needs in shorter timeframes has become an absolute in the minds of our customers. Customer responses are defined today as the consistent ...

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