How can supply chain leaders integrate global supply chain risk factors as core planning assumptions to enable growth in the face of unprecedented headwinds? Download the Network Design Models for CPG Companies guide to explore how to set the stage for a proactive network redesign, leverage risk scorecards in network and mitigation strategies, and implement scenario planning capabilities. Below, we’re sharing a few key points that the guide covers.

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Network Design Models for CPG Companies

Leading CPGs will need a balanced approach, continuing to optimize within their existing footprint while making targeted structural changes that reduce risk and sustain long-term growth. Below are a few key principles for network design models.

1. Make tariffs and geopolitical risk part of everyday planning. Embed them as real variables in your supply chain to drive optimization. 
2. Quantify risk. Scorecards and risk indices give shape and substance to uncertainty.  They serve as valuable communication and decision-making tools to help lead your modeling in both quantitative and qualitative realms. 
3. Make mitigation choices part of the model. Network design should simultaneously choose sourcing, buffer inventory, and mode, accounting for risk and cost. 
4. Provide scenario-driven executive decision support. The C-Suite needs a well-structured process with regular cadence. The tradeoff choices with quantified risk and associated cost in the form of tariff impact, transportation costs, inventory movements, and working capital changes need to be clear between each scenario.  
5. Be predictive and adaptive, not reactive. Shift toward always sensing your supply chain for key trigger points that drive the need to for change. The satisfaction and value of your customers lie in speed to model and ability to pivot quickly as new headwinds emerge in your supply chain. 

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The goal is to always be sensing your network with clear tipping points that trigger scenario analysis and network decisions, such as tariff increases, supplier risk score deterioration, margin erosion, port or transportation lane issues among others. With the right data, governance, and trigger points in place, companies can identify when conditions are approaching a tipping point and respond before disruption forces the decision. The guide dives deeper into the key points from the outline above, preparing teams to make effective steps towards stronger network design strategies.