Supply Chain Consultancy

Logistics Management

Logistics Management

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.

Benefits

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.

Transport and distribution optimisation

Improving and optimising the transport operation can be a key part of enhancing the overall efficiency of the business. Transport and distribution operations are often the last link in the chain and can determine customer experience as well as having a significant effect on costs.

Reviewing and potentially redesigning transport and distribution operations can be an imperative given the dynamic nature of markets today. Changing business requirements such as adding new customers, reducing lead times, changing order profiles all add to the continued pressure on costs.

What we do

Our structured review of current operations, including third party service providers, will consider:
  • transport mode selection and the parameters used
  • routing and scheduling methods
  • customer service expectations
  • fleet and asset utilisation
  • performance management and where appropriate, service level agreements.
The output from the review will assess the balance between service and cost efficiency and detail opportunities for improvement. We will ensure any proposals and scenarios are aligned to your overall supply chain strategy and customer proposition.

Benefits

Delivery operations are often the most tangible experience for customers and shape perceptions, good or bad. Well designed and managed transport operations can:
  • enhance customer loyalty and increase sales
  • help manage costs that can be both volatile and a significant proportion of revenue
  • improve asset utilisation and plan capital expenditure.

Warehouse design and management

Warehouses are an essential link in the supply chain, working efficiently they can create competitive advantage, keep costs down and enhance the customer experience. The best design and operational set up depend on the type of business, product characteristics, inventory policies, and customer ordering profiles. Getting this right is imperative for the supply chain to deliver successfully.

What we do

Our review of warehousing requirements assesses operational priorities within the context of the business strategy and encompasses core dimensions, including:
  • warehouse capacity and growth scenarios
  • storage methods utilised
  • current handling techniques
  • possible automation options
  • mechanical handling equipment specifications
  • organisational structure and staffing numbers
  • warehouse management systems requirements and specifications.

Benefits

Outcomes from the review typically include recommendations to improve current warehouse operations along with options to optimise operational efficiency and effectiveness. Detailed design specifications and the preparation of business cases for investment can be supported as needed.
  • increase operating efficiency and reduce cost
  • improve customer service
  • drive asset utilisation and manage capital expenditure
  • support performance management and employee engagement.

Logistics outsourcing

Logistics operations are often not a core capability of a business and it may be, that as the business grows, existing activities are likely overstretched and act as a hindrance rather than a help. When looking to outsource logistics functions it is important that a robust procurement process is in place and that the ground is set for an effective relationship.

What we do

Our approach follows a structured framework and includes:
  • defining the scope of the operations to be outsourced and how these should interface with continuing activities
  • documenting requirements and expected performance levels
  • collating all relevant information and data for the invitation to tender documents
  • conducting tender appraisal and benchmarking, and selecting service provider(s)
  • supporting contractual negotiations and agreement
  • planning migration to the new operational set up.

Benefits

The key benefits from outsourcing logistics include:
  • lower overall cost, mainly through shared use and achieving economies of scale not available to individual businesses
  • adjusting fixed and variable costs, with cost more tightly related to activity
  • improving flexibility and speed of response
  • reducing capital investment
  • accessing management expertise
  • limiting systems investment and ongoing development to core functions and avoiding the need to operate logistics related IT systems.

Ready to get started?

Case Studies

Returning a national hardware distributor to profit

Operating at a loss, the business needed to turnaround financial performance within 12 months. Find out how we did it.
Click here to Follow our LinkedIn page for more content
arrow-right