Experts agree that most of the costs of the supply chain are locked in with the location of the facilities and the determination of optimal flows of product between them.
The most successful companies recognize this and place significant emphasis on strategic planning by determining the best facility locations and product flows.
Some firms have realized this and now run this type of analysis on a more frequent basis.
This allows them to readjust their supply chain over time and keep their supply chain continually running in an optimal state while preventing costs from drifting upward.