The distribution network analysis process, which requires the application of specialized distribution optimization software, is utilized for existing networks as well as development of new distribution networks.
To learn more about this process, read our
recent article. We identify cost savings and network efficiencies.
We employ this process across multiple industries & disciplines to identify:
optimal cost & service distribution network to serve the current and potential customer base.
This requires the balancing of potentially conflicting objectives, including (but not limited to):
Inbound/Outbound Costs Inventory Deployment Costs Intercompany Movements Labor Costs Service Requirements Production & Facility Constraints Service & Cost Performance permalink
The Network Analysis optimizes appropriate costs & measures changes in projected service performance.
Sample Benefits of Distribution Network Optimization Planning permalink Identify optimal locations for facilities and warehouses Determine improved structure based on supplier and customer locations and costs Identify potential cost savings considering a large range of costs (inbound/outbound transportation, inventory costs, facility costs, labor costs, etc.) Evaluate cost and service impacts to market shifts and growth patterns Identify ways to improve service times based on location Develop sensitivity analyses to determine impacts of changes in location Evaluate “what-if” scenarios Example: Current & Improved Networks permalink Optimized for Multiple Products, Plants & DCs permalink
Projected savings = $33.2 million
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