Logistics Network Design

Design or optimise a logistics network infrastructure

Logistics network design is critical to the performance of the supply chain. The logistics network is the physical infrastructure, systems and processes that deliver products from supplier to end-customer, often via warehousing facilities.

The central question when designing a logistics network is how to fulfil orders in line with the customer proposition in the most efficient way. There are several questions that stem from this, such as:

How many warehouses or stockholding locations are needed?
Which location provides the coverage of customers?
What stock profile should each warehouse operate with?
How big does each warehouse need to be?
Are cross-docking sites required to support final mile delivery?
Which type of vehicles should be used for deliveries?
Which activities, if any, should be outsourced or kept inhouse?

Most projects that we undertake broadly follow the below approach with subtle changes to allow for client specific challenges:

Familiarise

Familiarisation

The objective is to develop a strong working understanding of the logistics network and operating model. We facilitate a kick-off workshop and interview key stakeholders to enhance understanding and get a full picture of the project requirements.

Familiarise

Analyse

Planning Base

We analyse a representative sample of data to build a picture of the current operational flows and costs. We then incorporate forecasted growth to build a ‘Planning Base’, establishing the design volumes to be used for the modelling phase of the project.

Analyse

Model

Option Modelling

Our consultants work collaboratively to agree a shortlist of feasible strategic design options and we create bespoke models evaluating the total capital and operational costs of each scenario. The impact on service levels is also assessed to compare against cost.

Model

Design

Solution Development

Our consultants facilitate a workshop to assess the quantitative and qualitative aspects of each scenario, leading to an agreed preferred network strategy. The preferred solution is further developed leading to a transition plan, business case and final report for board approval.

Design

We appreciate that most logistics networks are built through evolution and have fixed elements that cannot realistically be changed. Our consultants allow for this in the scenarios but can also include pure scenarios to understand the inefficiencies that such infrastructure or equipment generates. Our bespoke modelling is supplemented by use of visualisation tools including Centre of Gravity analysis, Starbursts and more.

Our extensive experience in evaluating a range of design options make BoxLogic an ideal partner to find the right solution for your supply chain. The benefits of working with BoxLogic are:

Proven methodical project approach and ability to work at all levels with our clients’ teams
Highly analytical consultant team with extensive practical experience, capable of identifying practical solutions
Knowledge of what does and doesn’t work through our team’s engagement with many different cross-industry clients
Bespoke models offering traceable and auditable results that are often not available in ‘black-box’ products
Significant experience across the supply chain means we understand the importance of how each aspect links to the other
Ability to design at national, continental or global level

Contact BoxLogic to design an effective logistics network to meet your customer proposition in one of the following ways:

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Email enquiries@box-logic.co.uk
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Call us now on +44 (0)118 309 4030