What is network planning in supply chain?

Network planning is the work of deciding where to place warehouses, hubs, and routes so a supply chain can serve demand at the lowest cost and the best speed. It is the strategic layer above day to day logistics.

The questions are big and expensive to get wrong. How many distribution centers, where, serving which regions, fed by which routes. Move a hub fifty miles and the cost of every future delivery shifts with it.

Because the variables interact, good network planning leans on modeling and data rather than intuition. You simulate the options before you pour concrete.

Sthenos built a network planning tool for a logistics and supply chain operator, turning a complex modeling problem into a usable decision tool.

Related terms: transportation management system (TMS), route optimization.

How often should a company redo network planning?

Whenever demand, costs, or footprint shift meaningfully. It is a periodic strategic review, not a one time setup.