Companies today find themselves facing increasing customer demands, global uncertainties, and environmental, social, and governance (ESG) pressures while still needing to get their goods to market as cost efficiently as possible. An effective network optimization tool can help companies navigate these challenges but selecting one can be daunting. While the available reviews and marketing literature provide a good starting point, they do not provide a complete picture.
Note that network optimization is the process of using a mathematical model to determine the best sourcing and transshipment locations and flow of product to balance supply with demand while accounting for critical constraints. This includes considering metrics such as cost, service, resilience, and sustainability. It typically is a precursor to evaluating inventory location or vehicle route planning with inventory optimization or transportation optimization, respectively. Supply chain network design (SCND) incorporates all three of these: network optimization (NO), inventory optimization (IO), and transportation optimization (TO).
Product descriptions and marketing literature for supply chain network design software both focus on the purpose of the software, such as finding the best location for warehouses or improving supply chain resiliency. Unfortunately, much less is mentioned about the usability of the software, which is critical for making a tool practical to learn and implement.
There are also some buyers’ guides available for supply chain network design software that supplement the marketing literature. For example, Gartner publishes a "Market Guide for Supply Chain Network Design Tools,"[1] which focuses on recommendations for how to select a network design tool.[2] Gartner also offers a peer insights page with user reviews organized by markets, which includes a webpage for Supply Chain Network Design Tools Reviews and Ratings. SourceForge offers an extensive set of vendors in its list of Best Supply Chain Network Design Software (2023) with the ability to compare vendors. The software vendor AIMMS offers a Buyer’s Guide for Supply Chain Network Design Software that is a helpful overview but does not directly compare network optimization tools. While all these guides are helpful, they still lack an in-depth analysis of the usability of the specific tools.
Another weakness with the current literature is that it focuses on supply chain network design in general as opposed to looking closely at just network optimization. Because of the breadth of real-world supply chain activities, a list of SCND vendors is necessarily broad. This means that some applications are not directly comparable or not relevant for network optimization. However, when most people talk about supply chain network design, they are thinking foremost about network optimization, so it’s important to parse out the tools relevant for that desired use.
This article is meant to address these issues with a focused effort on evaluating the user experience (UX) and user interface (UI) of network optimization tools. Hopefully this will provide additional guidance to potential buyers for a well-informed purchase decision.
Vendor overview
The following provides a list of the leading vendors and applications for network optimization (as opposed to the broader category of SCND). There are additional vendors that have not been evaluated but might be considered in a broader survey. (See, for example, the Gartner market guide.)
Leading vendors and applications for network optimization | |||
Vendor | Application Name | Previously Known As | Initiated by LLamasoft Alumni |
AIMMS | SC Navigator | X | |
Blue Yonder | Network Design | i2/JDA Supply Chain Strategist |
|
Coupa Software | Supply Chain Modeler | LLamasoft Supply Chain Guru X | X |
Decision Spot | Foresta | X | |
GAINSystems | Supply Chain Architect | 3TO Supply Chain Architect | X |
Logility | Network Optimization | Starboard Navigator | X |
Lyric | Lyric Studio | X | |
Optilogic | Cosmic Frog | X | |
Sophus Technology | Sophus X | X | |
The AnyLogic Company | anyLogistix |
| |
The applications offered by these vendors differ significantly in their cost, flexibility, scope of functionality, and training requirement, as well as other factors. Understanding the nuances of these differences can be daunting, but this article will attempt to provide clarity on salient points.
Most of these vendors incorporate additional modules beyond network optimization (NO), such as discrete event simulation (SIM), inventory optimization (IO), or transportation optimization (TO). However, the focus here is on network optimization. NO makes up the lion share of use cases for supply chain network design and is the typical starting point for companies evaluating their supply chains. Note that greenfield analysis (GF or GFA) is a variation of NO and is typically included as a functionality with NO.
Feature evaluation
All the tools listed above can solve the math problem of optimization. (By definition, an optimal solution would be identical for a given set of input data irrespective of the technology used.) What mostly differentiates the tools is the user experience, for example the user interface, user training, data-model documentation, help desk support, and the workflows necessary for data import/export and creating and editing scenarios.
Based on experience, the following questions will help differentiate between okay tools and good ones.
Data munging,[3] visualization, & validation
- Is it possible to import from/export to an external database or visualization tool?
- Are you limited to loading and extracting data through Excel?
- Can a portion of the data be refreshed without re-importing all the data?
- What data validation is available in the tool? Is such validation on-demand, passive (for example, does the software flag or highlight inconsistencies between tables), or is it required with every data import? The latter can make for a long import process.
Solver
- How fast is the solver engine? Can its behavior be adjusted or observed by the user? For example, does the solver allow the user to choose a different solving algorithm or track the optimality gap?[4]
- If the solver crashes or the user cancels a long solve will the last known solution be retained?
- Could a user be logged out due to inactivity or loss of internet connection and thus lose the result of a solve or will the solver keep running and save the solution?
- What are the infeasibility analysis capabilities of the tool?[5] Can penalties be used to get a partial solution?
Scenarios
- How easy is it to implement a base case solution?
- Can scenarios be built such that they are repeatable, easily modified, and tracked in a transparent way? Or must scenario edits be done ad hoc (and repeated every time a model is refreshed) and tracked outside the software?
- Can data filters and map customizations be saved for repeated use or future reference?
Training & support
- Is on-demand training available?
- How good is the data-model documentation and online-help explanation of features?
- How easy is it to collaborate with others for building or debugging a model?
- Is there an active user community through which questions can be asked and answers found?
- How responsive is the help desk?
Licensing
- Is a trial license available?
- Is a low-cost account available for long-term retention of models or for the ability to easily revisit old models?
- How flexible is the licensing? Can a license be paused between projects or obtained for just a short engagement? This is especially important for consultants. However, for any project 90%+ of the work is done outside the tool for the data munging and results analysis. So the license activation could be delayed or paused while data munging and results analysis are done.
Cost is a factor to consider but should be subordinate to the user experience. A poor UX or UI increases training time and reduces usability, which can more than offset any differential in software price.
UX/UI evaluation
Coupa’s Supply Chain Modeler (also known as Supply Chain Guru X and developed by LLamasoft[6]) has been the most recent standard bearer for NO tools for the user experience and user interface. However, it is getting supplanted by its offspring, tools created by former LLamasoft associates. The newer tools are cloud-native,[7] and the standouts have scenario and parallel-solve capabilities, offer generative artificial intelligence (Gen-AI) assistance, and integrate easily with external tools for data munging and visualization. Vendors continue to innovate or come to market, so it’s important to check what are the latest developments when starting one’s own evaluation.
UX and UI evaluation of the tools listed under the vendor overview was based largely on the author’s personal experience with each tool, along with input from many other users. Thus, there was a large subjective element to the approach. Any product comparison will likely have similar subjectivity embedded, even if there are quantitative factors that can be applied. In any case, this comparison is meant to supplement one’s own evaluation.
A full evaluation of a tool’s user experience and user interface should consider:
- On-demand learning,
- Help desk and online support,
- Ease of collaboration,
- User community,
- Ease of modeling,
- Scenario capability,
- Richness of modeling,
- Landed-cost analysis,
- Integration with visualization tools, and
- Solving speed.
When conducting one’s own evaluations, be aware that while vendor demos can be instructive a skilled demonstrator always makes a tool look fluid and intuitive, bypassing any features that might be lacking. End users should try building sample models to validate what the software sales team has promised and identify shortcomings not revealed by the vendor. Also, a consultant or experienced user already familiar with a variety of tools can be of great assistance with the software selection process.
A word about training and talent retention
Even if the NO software is easy to use, there is much more to consider when engaging down the path of optimizing one’s network. A glaring gap in the software marketing literature is how NO requires skilled users, who can be difficult to recruit or develop. To compensate for the lack of talent, a common approach for a company is to have external consultants build a model for an initial project then have in-house analysts trained and mentored to maintain/improve the model and build new models.
Retaining in-house talent to use the tool is also a perennial challenge, as individuals get pulled onto other projects and analyses, change roles to seek career advancement, or leave for other reasons. Thus, it is best to have a strategy to: (1) retain the knowledge of past users, (2) develop the skills of new talent, (3) maintain a relationship with a consulting team that can step in when needed to support or supplement in-house talent, and/or (4) contract with a consulting team for a managed service. The latter option is becoming a staple of consulting teams and even vendors who focus on network design.[8]
Beyond the hype
Supply chain network design typically starts with network optimization. Those considering software for such a study should look beyond the marketing hype to fully appreciate the user experience and how that impacts usability. A true product comparison should include obtaining a trial license to build a relevant sample model in multiple applications. Finally, talent development and retention are critical for obtaining the benefits promised by the vendors.
Author's note: Feedback is welcomed from vendors and users alike. Corrections will be attempted for any oversights or misperceptions presented here. Submit comments to jonathan.smith@NorthwaySCA.onmicrosoft.com.
Notes:
[1] The guide was first published in 2022 and updated in 2023 & 2024. The main revision each year was refreshing the list of vendors. Follow the link to Gartner Market Guide for Supply Chain Network Design Tools for the 2024 version.
[2] Gartner’s guide does give advice that some tools are more sophisticated and full-featured than others, but the guide gives no indication as to which are those tools. As Dan Gilmore of Supply Chain Digestrecently noted in his weekly column, "There has been an almost complete demise of analysts writing any 'negative' research/opinions on specific vendors. In the 1990s, this was not uncommon, even though it brought fire and brimstone from any vendor receiving such criticism." In fact, at least one supply chain trade publication refuses to publish articles that compare vendors. Also, some vendors require signing a non-disclosure agreement to have a demo, limiting the ability of analysts to evaluate tools. The concern of legal action further limits analysts’ willingness to write critical reviews.
[3] Data munging is the process of cleaning and transforming data prior to use or analysis.
[4] The optimality gap is the gap between the best-found solution and best possible solution.
[5] An infeasibility analysis is the process of determining what constraints were violated and suggesting new constraint values.
[6] Coupa Software acquired LLamasoft in November 2020.
[7] Coupa has also transitioned Supply Chain Modeler to the cloud, but it is currently not as robust as the desktop version.
[8] Steve Ellet, the former senior vice president of Supply Chain Design at Chainalytics, astutely summarized knowledge retention issues in his article Troubling Trends in Supply Chain Design: An Uptick in Bad Models and Collapsing Teams.
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