Logistics network optimisation
Optimal logistics network design minimises inventory carrying, warehousing, and transportation costs whilst satisfying customer response-time requirements. If left unchecked, over time, adjustments and additions to the existing network may have compromised efficiency and effectiveness and allowed distribution costs to consume an increasing proportion of revenue.
What we do
The network needs to serve and support future business plans and possible growth scenarios. Our review will assess the current logistics network alongside new options, taking account of:
- current network configuration; the number of sites, storage methods, order assembly and distribution approaches including any cross-dock operations
- product flows and replenishment cycles
- order fulfilment parameters and expectations
- scale of business growth and potential diversification
- volume split across customer channels and geographies
- expected design life of any revised solutions
- restructuring costs.
Along with evaluating current site capabilities, our review will estimate the potential costs and benefits of change together with the associated risks. A roadmap indicating the transition steps in moving from current to optimal can also be prepared in support of creating a compelling business case.
A comprehensive logistics network review and re-design can:
- increase overall supply chain resilience
- support agile responses to meet future scenarios
- reduce operating costs and capital requirements
- enhance customer service through better product availability and order lead times
- increase sales and improve profitability.