BUILDING THE FOUNDATION FOR SIMULATION- BASED SUPPLY CHAIN DESIGN AT SCANIA
(2026) MTTM05 20261Production Management
Engineering Logistics
- Abstract
- Global manufacturing companies operate in increasingly uncertain and complex environments where changes
in sourcing strategies, supplier structures and logistics networks create significant challenges for decision-
making. Traditional analytical methods often struggle to capture the dynamic and interconnected nature of
modern supply chains, limiting their ability to support proactive evaluation of structural changes. Simulation-
based decision support offers opportunities to evaluate alternative future scenarios and understand system
behavior before implementing changes. However, effective simulation requires organizational and technical
prerequisites that remain insufficiently understood in industrial settings. This study... (More) - Global manufacturing companies operate in increasingly uncertain and complex environments where changes
in sourcing strategies, supplier structures and logistics networks create significant challenges for decision-
making. Traditional analytical methods often struggle to capture the dynamic and interconnected nature of
modern supply chains, limiting their ability to support proactive evaluation of structural changes. Simulation-
based decision support offers opportunities to evaluate alternative future scenarios and understand system
behavior before implementing changes. However, effective simulation requires organizational and technical
prerequisites that remain insufficiently understood in industrial settings. This study investigates what is re-
quired to enable simulation-based decision support for logistics network design within a large manufacturing
company.
The study was conducted as a case study at Scania’s Regional Material Control Nordic organization and com-
bined Case Study Research with Design Science Research. The research explored current decision-making
practices, organizational structures and information flows related to inbound logistics and supply base changes.
Data collection included interviews with stakeholders across logistics, procurement and external experts, to-
gether with internal documentation, archival records and observations. Rather than developing a simulation
model, the study focused on identifying the requirements needed to enable future simulation capabilities.
The findings show that logistics network decisions are influenced by fragmented information flows, limited
cross-functional visibility and insufficient data structures connecting strategic sourcing decisions with opera-
tional logistics performance. Several barriers to simulation readiness were identified, including data availabil-
ity limitations, organizational disconnects and unclear ownership of required information. To address these
challenges, the study developed a conceptual simulation architecture that defines required entities, key perfor-
mance indicators, data requirements and organizational prerequisites. The analysis guided the creation of a
simulation framework which includes a simulation readiness assessment of Scania and a five-phase roadmap
outlining the activities needed to establish simulation readiness.
The study contributes to supply chain design literature by extending understanding of simulation readiness
as an organizational capability rather than solely a technical implementation challenge. From a practical
perspective, the findings provide Scania with a structured foundation for developing future simulation-based
decision support capabilities that can strengthen proactive logistics network design and evaluation under
increasing supply chain uncertainty.
Contribution: This thesis has been a complete collaboration between the two authors. Each author has been
involved in every part of the research process and contributed equally. (Less) - Popular Abstract
- Preparing for the Unpredictable: Future-Proofing Supply Chains Through Simulation BY OLLE SANDELL FERRADA & EDVIN GADELII (2026)
Imagine trying to predict the ripple effects of moving a major manufacturing supplier from Europe to Asia. In today’s global industry, supply chains face unprecedented uncertainties - from shifting markets to sudden logistical bottlenecks.
Traditional, static planning tools, like spreadsheets, heavily struggle to capture the dynamic and interconnected nature of these modern networks. As a result, strategic sourcing decisions often lead to unforeseen operational costs and delayed activities. To stay competitive, companies need the ability to test "what-if" scenarios before making real-world changes. This... (More) - Preparing for the Unpredictable: Future-Proofing Supply Chains Through Simulation BY OLLE SANDELL FERRADA & EDVIN GADELII (2026)
Imagine trying to predict the ripple effects of moving a major manufacturing supplier from Europe to Asia. In today’s global industry, supply chains face unprecedented uncertainties - from shifting markets to sudden logistical bottlenecks.
Traditional, static planning tools, like spreadsheets, heavily struggle to capture the dynamic and interconnected nature of these modern networks. As a result, strategic sourcing decisions often lead to unforeseen operational costs and delayed activities. To stay competitive, companies need the ability to test "what-if" scenarios before making real-world changes. This is where computer simulation becomes invaluable.
However, you cannot simply plug a complex logistics network into a simulation software and expect instant answers. Our master thesis, conducted at Scania’s Regional Material Control Nordic, investigated what is actually required for a large organization to enable simulation-based decision support. Instead of just building a model, we focused on the foundational question: is the organization technically and organizationally ready?
Through interviews and data analysis, we found that simulation readiness is far more than an IT challenge. It is an organizational capability. We identified key barriers preventing Scania from effectively simulating their network today. These include fragmented information flows between departments - such as Procurement and Logistics - along with data quality issues and a lack of cross-functional alignment. Often, strategic decisions are made without a clear picture of their downstream operational consequences, leading to hidden costs that are absorbed later in the chain.
To address these gaps, we developed a comprehensive simulation framework tailored for Scania. We mapped out exactly what data is missing - such as precise processing speeds and transport capacities - and created a simplified conceptual model of the network. Furthermore, we designed a five-phase implementation roadmap. This step-by-step guide bridges the gap between current fragmented practices and a future state where simulation is an integrated tool.
By following this roadmap, organizations can break down internal silos and transition from reactive firefighting to proactive planning. In the long run, establishing this simulation foundation will allow companies to accurately predict lead times, reduce CO2 emissions and minimize total logistics costs before a single physical truck hits the road.
This popularized summary is derived from the master thesis: "BUILDING THE FOUNDATION FOR SIMULATION-BASED SUPPLY CHAIN DESIGN AT SCANIA", written by Olle Sandell Ferrada and Edvin Gadelii (2026). (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/student-papers/record/9242543
- author
- Sandell Ferrada, Olle LU and Gadelii, Edvin LU
- supervisor
- organization
- course
- MTTM05 20261
- year
- 2026
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Keywords: Simulation Readiness, Simulation-Based Decision Support, Supply Chain Network Design, In- bound Logistics, Supply Base Changes, Discrete-Event Simulation, Design Science Research
- other publication id
- 6067
- language
- English
- id
- 9242543
- date added to LUP
- 2026-06-24 12:06:02
- date last changed
- 2026-06-24 12:06:02
@misc{9242543,
abstract = {{Global manufacturing companies operate in increasingly uncertain and complex environments where changes
in sourcing strategies, supplier structures and logistics networks create significant challenges for decision-
making. Traditional analytical methods often struggle to capture the dynamic and interconnected nature of
modern supply chains, limiting their ability to support proactive evaluation of structural changes. Simulation-
based decision support offers opportunities to evaluate alternative future scenarios and understand system
behavior before implementing changes. However, effective simulation requires organizational and technical
prerequisites that remain insufficiently understood in industrial settings. This study investigates what is re-
quired to enable simulation-based decision support for logistics network design within a large manufacturing
company.
The study was conducted as a case study at Scania’s Regional Material Control Nordic organization and com-
bined Case Study Research with Design Science Research. The research explored current decision-making
practices, organizational structures and information flows related to inbound logistics and supply base changes.
Data collection included interviews with stakeholders across logistics, procurement and external experts, to-
gether with internal documentation, archival records and observations. Rather than developing a simulation
model, the study focused on identifying the requirements needed to enable future simulation capabilities.
The findings show that logistics network decisions are influenced by fragmented information flows, limited
cross-functional visibility and insufficient data structures connecting strategic sourcing decisions with opera-
tional logistics performance. Several barriers to simulation readiness were identified, including data availabil-
ity limitations, organizational disconnects and unclear ownership of required information. To address these
challenges, the study developed a conceptual simulation architecture that defines required entities, key perfor-
mance indicators, data requirements and organizational prerequisites. The analysis guided the creation of a
simulation framework which includes a simulation readiness assessment of Scania and a five-phase roadmap
outlining the activities needed to establish simulation readiness.
The study contributes to supply chain design literature by extending understanding of simulation readiness
as an organizational capability rather than solely a technical implementation challenge. From a practical
perspective, the findings provide Scania with a structured foundation for developing future simulation-based
decision support capabilities that can strengthen proactive logistics network design and evaluation under
increasing supply chain uncertainty.
Contribution: This thesis has been a complete collaboration between the two authors. Each author has been
involved in every part of the research process and contributed equally.}},
author = {{Sandell Ferrada, Olle and Gadelii, Edvin}},
language = {{eng}},
note = {{Student Paper}},
title = {{BUILDING THE FOUNDATION FOR SIMULATION- BASED SUPPLY CHAIN DESIGN AT SCANIA}},
year = {{2026}},
}