MIT SCM Symposium 2024

In today’s competitive business environment, companies are increasingly seeking ways to optimize their supply chain networks to reduce costs, improve responsiveness, and enhance sustainability. This capstone project explores the potential of co-location strategies, specifically the Supplier Park Model, in addressing supply chain inefficiencies for ABC Corporation, a leading food and beverage company. By comparing the baseline scenario of the company’s current geographically dispersed network with a future state scenario implementing the Supplier Park Model, the study quantifies the impact of co-location on three key metrics: cost reduction, speed-to-market improvement, and environmental sustainability. The results demonstrate that the Supplier Park Model can lead to a 45% reduction in total costs, a 30% improvement in speed-to-market time, and an 82% reduction in Scope 3 carbon emissions from transportation. The project highlights the importance of optimizing lead time, transportation, and inventory management in supply chain network design and provides actionable recommendations for ABC Corporation to implement the Supplier Park Model. This study contributes to the field of supply chain management by demonstrating the potential of co-location strategies to drive significant improvements in efficiency, responsiveness, and sustainability, pushing the boundaries of supply chain network design.