Distribution Network Optimization

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.

A shipping port
We identify cost savings and network efficiencies.

We employ this process across multiple industries & disciplines to identify:

  • Where new or additional DCs or plants should be located

  • How different options can impact costs for the company

Identifying the optimal cost & service distribution network to serve the current and potential customer base.

A sample cost driver matrix and sensitivity analysis

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.

Cost performance analysis

Sample Benefits of Distribution Network Optimization Planning permalink

Sample benefits of network optimization

  • 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

Example network graph

Example network graph

Example network graph

Optimized for Multiple Products, Plants & DCs permalink

Projected savings = $33.2 million

Projected cost savings