Which bandwidth solution (T1, DS3, OC3) makes sense for a supply chain network?

A company’s supply chain network can be a complicated animal. To service this network of constant data and storage exchange, a reliable, high-performance backbone is required. An important part of the design is the correct level of bandwidth support… T1, DS3 or OC3 bandwidth circuits to be exact. Making the right decision on which circuit to choose means navigating a series of problems.

A company’s supply chain network can be a complicated animal. To service this network of constant data exchange, a reliable, high-performance backbone is required. An important part of the design is the correct level of bandwidth support… T1, DS3 or OC3 bandwidth circuits to be exact.

First, you’d probably consider getting a carrier VPN service for your backbone, as this eliminates a lot of the hassle of planning and managing capacity. You can then focus on the bandwidth required for each of your installations and this can vary depending on the circumstances.

To size queuing circuits, you need to consider the rate of transactions and the typical size per transaction. From this you should be able to calculate the bandwidth. If you assume the largest transaction size and the maximum number of transactions, this will give you the maximum bandwidth. Add at least 20% to this to be safe (TCP overhead will eat up some of this). Also consider the required service response. It may be possible to “smooth out” some of the spikes by allowing some transactions to be slightly delayed.

Of course, ideally you should work on this for each site over a 2 year period and plan for any growth. Find out from your service provider how quickly upgrades can be done and how much they cost…it may be best to put in a bigger pipe on day 1. Where it isn’t, track the rate of growth and note the service provider update time, as well as internal delay caused by business case and quote approvals, purchase order signings, etc. and make sure you order in plenty of time.

What you need is scalable (easily increase bandwidth for growth), secure (at least as good as the Layer 2 OS equivalent), and flexible (connect multiple entities that will be part of the SCM). IMHO I’d rather explore which WAN technology would be a better fit, eg MPLS or VPLS, than access methods. I really like the latter because of the inherent flexibility, protocol independence, coverage, scalability, security, and yes, flexibility. Some providers may also offer you the option of secure internet gateway via xPLS backbone for ubiquitous connectivity and bring your own internet connectivity options for smaller B2B links.

DS0, T1, T3 (DS3), OC3, OC12 are all the same technology in different sizes and prices. The only difference is the price… you buy the size you need. It’s like asking which is better for pumping water, a half inch copper pipe, a 1 inch copper pipe, a 2 inch copper pipe, or a 4 inch copper pipe…depends on how big it is the pump and how much water you have.

You don’t buy telecoms for the future, you’re too flexible: you structure your contracts for the future, you set up your network to expand, you buy the services you need.

I’d like to suggest an application level approach to determining your…..

1) application bandwidth requirements,

2) number of locations,

3) extranet/partner requirements,

4) security requirements,

5) closed network or internet based vpns.

Bandwidth doesn’t solve all problems, you need a functional strategy to determine your current capabilities, identify gaps with the current solution, identify gaps, and then decide what it would take to address current and future capabilities, and close those gaps.

Companies rely on technologies in various combinations to solve business problems. they are chosen based on bandwidth requirements, cost, their ability to provide QoS levels, local availability, and the degree to which they can interoperate with other technologies and applications.

Since your supply chain network may have access to head office, warehouses, suppliers, branches, wholesalers, and retailers, I suggest a multipoint packet switched network (sic MPLS) as the core.

IP/MPLS VPN can solve your connectivity problem and you can opt for a certain CIR (flavored with time of day, loop of week) that meets your traffic needs to keep costs down. CIR can range from 1mb to Gbps (depending on location) and even remote login can be accommodated. The EIR can be incorporated into the contract to compensate for any fluctuations in traffic.

T1, DS3, OC3 are basic products. It depends on the quality of the network you need in the locations you need. Not all services are available everywhere. Also, you might want to consider metro-ethernet, which might be cheaper. With metro-ethernet, you can easily account for bursts of required bandwidth. You may also want to consider MPLS. It also depends on the level of security you need. That is often dictated by legacy systems, and the customer is unwilling to move to a new network due to prohibitive costs or policies.

Although this may all sound very complicated… it doesn’t have to be. You can get free help to find the best solution through the free services at DS3-Bandwidth.com