According to management study guide (MSG) (2013), a design framework should take into consideration elements of technology, external environment, market, and product. A supply chain is the critical backbone for distribution and consumption of goods and services (Watson et al. 2012). An efficient design should span across the market and should involve suppliers, wholesalers, retailers and consumers.
With changing consumer patterns, firms want to supply their products through different channels (Watson et al. 2012). A supply chain network dictates the manufacturing methodology and assembly points a given good or service should be collected from (MSG 2013). An organization maximizes its profitability by minimizing transportation costs by setting up warehouses closer to the consumers (Watson et al. 2012). The production unit should be situated where transportation costs of raw materials are minimal. A supply chain network defines sales and marketing decisions. MSG (2013) states that a supply chain network extrapolates cost impacts and combines possible combinations to project profitability. Supply design network is a strategic endeavor that includes long term; short term and capacity planning that extend over lengthy time horizons. An integer and linear programming mathematical optimization are the best approaches to deciding on various options and determine the best locations for supply (Watson et al. 2012).
A strategic fit concept requires that organizations achieve efficiency in a supply chain in a way that meets the organization’s competitive strategy. The organization has to identify relevant drivers to achieve this efficiency. In any organization, capital productivity in the supply chain context comes when responsiveness and efficiency are improved (Business and Management University, 2011). Inventory, transportation, information and facilities determine the