Optimization
Maximize the Margin
Optimization is to determine the best action that maximizes or minimizes the target functions, such as profits or finite resources, to improve overall performance with high efficiency. Many applied business problems require optimization, such as labor planning, service level, logistics, and portfolio management.
US companies carried more than $1.9 trillion in inventory
U.S. Census Bureau October 2020
80% of overall inventory
consumption comes from just 20% of total items
Pareto Principle
For 2018 US logistics costs, 28% is spent on Inventory carrying costs, 65% is spent on Transportation costs
Statista
Why is optimization difficult and how we can help?
Countless and non deterministic variables in the real world make the business problems intractable and can not be solved by enumeration.
Nonlinear relations make the optimum solution counterintuitive. It is almost impossible for humans to find the point that balances all parameters at the same time and see the big picture of all functions in the long term.
It is often too complicated to rely solely on managerial intuition to identify the optimum solution due to the data volume and multiple constraints. Our customized models can quickly provide compromised solutions under the constraints of capacity, budget, time, and labor factors...etc.
Our step-by-step package solution
Identify Goals &
Constraints
Map and verify goals, components, supply chain segmentations, potential restrictions, resource/infrastructure
requirements.
Analyze &
Optimize
Determine core-functions and relationship types with partners. Optimize resources, processes, and systems across the supply chain.
Monitor &
Monetize
Conduct scenario tests for resilience improvement. Yield immediate benefits with better efficiency, visibility, and integrated supply chain.
Use Cases
Network Optimization
There is no "one-size-fits-all" logistics solution, different supply chain segmentation requires different solutions at different decision levels. We target location, number, capacity, infrastructure, design, and automation first, strike the balance between centralized and decentralized distribution systems, and optimize scheduling, routing, and fleet utilization. Our solution scans through different outcomes when adding new elements, making what-if assumptions, and evaluating external factors to enable the organization meet the customer's demand at desired service level efficiently.
Inventory Optimization
80% of overall inventory consumption comes from just 20% of total items. Our model indicates the optimal order quantity, service level, and safety stock for each review period based on product features, lead-time fluctuations, and demand uncertainty to ensure you carry the right inventory, in the right locations, at the right time and strike the balance between customer retention and working capital.
Process Optimization
The goal of process optimization is to maximize the efficiency or through put and minimize the cost by making the best use of resources without violating the constraints. Automating inefficiency processes doesn’t make the situation better. Our customized solution helps you to improve underlying processes, streamline workflows, eliminate redundancies, and improve communication.
Scheduling Optimization
Scheduling optimization is to ensure each individual task in a schedule is aligned with the organization's ultimate goal and customers demand to minimize movement costs, and total cycle time and increase labor productivity, capacity/resource utilization, and pricing power across facilities.
Portfolio Optimization
Diagnose your physical/non-physical asset mix to know which categories should stay in your current business portfolio to enhance profitability, liquidity, and stability. Benchmark historical performance to identify hidden improvement opportunities, mitigate risks, and improve return on investment under the constraint of capital and instruments.
Read Client Success Stories
Reduced 40% of IoT Sensors placement and saved USD 20 Million for a Chemical Manufacturer.
Generated 5% more revenue from portfolio optimization for a Transportation conglomerate.
