Supply Chain Cases

This lesson teaches how to analyze sourcing, logistics, and network tradeoffs in supply chain case prompts.

Why This Matters

Supply chain cases test whether you can think beyond simple cost reduction and understand how a network delivers product reliably.

They often involve tradeoffs between:

• cost
• service level
• resilience
• complexity

The Case Pattern

A supply chain case usually concerns one or more of these areas:

• sourcing
• manufacturing footprint
• inventory
• warehousing
• transportation
• supplier structure

The job is to determine where the network is underperforming and how to redesign it intelligently.

What the Interviewer Is Testing

Treat supply chain cases as network decisions, not just line-item cost reviews.

Ask:

• where is cost increasing?
• where is service breaking down?
• what tradeoff is the client willing to make?

How to Approach It

1. Clarify the objective

Is the client trying to:

• reduce logistics cost
• improve fill rate
• improve resilience
• reduce lead time

2. Map the supply chain

Outline:

• suppliers
• plants
• warehouses
• transport flows
• customers

3. Identify the pain point

Look for:

• expensive routes
• poor inventory placement
• supplier concentration
• stockouts
• excess inventory

4. Evaluate tradeoffs

Typical tradeoffs include:

• lower cost vs higher service
• lean inventory vs resilience
• global sourcing vs local flexibility

5. Recommend a network or policy change

For example:

• rationalize warehouses
• dual-source suppliers
• adjust reorder logic
• redesign transport routes

Case Example

Prompt:

"A consumer goods company’s distribution costs have risen sharply."

A strong candidate may evaluate:

• route density
• warehouse footprint
• fuel or freight rate changes
• order frequency
• service-level commitments

They may conclude that the issue is not only transport price but also subscale network design or inventory placement.

What Strong Candidates Do

A strong candidate:

• maps the end-to-end network clearly
• isolates the main source of cost or service breakdown
• discusses tradeoffs explicitly
• recommends targeted structural fixes

What Weaker Candidates Tend to Do

A weaker candidate often:

• suggests negotiating with suppliers immediately
• ignores service-level requirements
• looks only at one cost line
• forgets resilience and operational risk

Common Traps

Mistake 1: Treating supply chain as procurement only

Many problems come from network design, inventory policy, or logistics execution.

Mistake 2: Ignoring tradeoffs

A cheaper network may not be acceptable if it weakens service too much.

Mistake 3: Missing complexity cost

Too many SKUs, routes, or nodes can create hidden operational drag.

Practice Prompt

A retailer wants to lower inventory while maintaining service level. What would you need to analyze?

Example Approach

"I would first clarify whether the priority is cost, service, resilience, or some combination. Then I would map the current network from suppliers to customers, identify where costs or service failures are concentrated, and evaluate the main tradeoffs. My recommendation would likely focus on the highest-impact structural lever, such as warehouse footprint, inventory placement, or supplier mix, rather than on broad cost-cutting alone."

What to Remember

• Supply chain cases are network tradeoff problems.
• Map the flow before jumping to solutions.
• Cost, service, and resilience often pull in different directions.
• Recommend changes that match the client’s actual priorities.