Over the past several decades, processes to design and build cars, airplanes and products used in various other industries have typically followed a linear, sequential path. This process typically started with product research, ideation and concept development, followed by design and development, prototype and validation, leading to production, launch, operation and, eventually, product retirement.
BNSF will spend $5bn on infrastructure this year, topping its record $4bn investment last year, says Steve Bobb, chief marketing officer. In addition to maintaining and improving service and capacity, BNSF will invest in logistics hubs and other future-focused infrastructure.
A recent TAKE Supply Chain survey indicated that the primary reason companies choose to outsource some or all of their manufacturing or distribution activities is cost reduction. This was the number one reason chosen by 61 percent of survey respondents across all global regions. However, a frequent issue faced by companies after the outsourcing project goes live is that they're not achieving their expected cost savings. Two common causes for this disconnect are vague contract terms or metrics, and manual processes.
Optimization technology allows manufacturing companies to become more flexible and to more efficiently manage their supply chains by accounting for real life constraints and business rules. They can review "what-if" analyses of various scenarios, tied to key performance indicators that measure success on an ongoing basis. They can generate near optimal plans from the virtually infinite number of possible options. And with a clear set of future-oriented KPIs they can measure tomorrow’s performance before it happens.