The logistics network encompasses the physical infrastructure, systems and processes that handle products from supplier to customer, typically via warehouse facilities. These are strategic design projects where the objective of is to define the lowest cost solution that meets the customer proposition.
Defining the most appropriate distribution network involves, among other things; understanding how many warehouses should be operated, where each of those warehouses should be located to minimise transport and warehouse operating costs, and how big each warehouse in the network should be based on the customer allocation.
The key deliverables of logistics network design and optimisation projects is a report detailing the recommended network configuration, the capital and operating costs of the proposed changes, a transition roadmap, and details of how, and why, the preferred solution was selected. Our consultants also support or lead the business case preparation and approval process.
We Solve Problems
- The lease on your warehouse is expiring soon and you want to understand if you should renew or whether there are benefits from relocating
- You are looking explore the options and financial impact of improving your customer service levels
- Are there any financial or service benefits to consolidating or expanding the number of sites in your distribution network?
- Your current site(s) is exceeding its capacity and you want a strategy for what to do next
Typical Project Approach
We develop a strong working understanding of your logistics network and operating model by facilitating a kick-off workshop and interviewing key stakeholders to enhance our understanding and build a picture of the project requirements.
We analyse representative data sets to understand current operational flows and create visualisations of the current network. Centre of Gravities are identified. Operational flows are overlaid with growth projections to create a ‘planning base’. This is used as a key input to the option modelling phase.
Our consultants agree a shortlist of feasible options with the client project team. We then create bespoke models to evaluate the financial and service levels of each scenario. A preferred solution is then agreed for further development.
We work with you to further develop the preferred solution and build a business case for board approval and to define a transition plan from the current to future state network.
Case Studies
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