Companies often consider supply chain optimization when there's a significant event, such as a merger or acquisition, or when there are concerns surrounding financial results. Perhaps transportation costs are rising, or service levels are falling, and other members of your supply chain are complaining. As suppliers expand meet changing expectations, supply chains have begun to grow in an ad hoc fashion. Response to e-commerce demand has led companies to bolt on direct-sales capabilities without integrating them into other channels, eventually leading to higher costs and fragmented management.

The process for a supply chain optimization typically starts with a thorough analysis based on forecast demand, followed by the development of a production and inventory plan to meet the forecast. The study includes inbound raw materials or components, manufacturing, transportation and distribution. It's also an opportunity to examine the possibilities for better integrating e-commerce through an omnichannel strategy.