Logistics 
Strategy

Logistics Network Strategy

Define or optimise your logistics network strategy

Logistics network strategy 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 defining a logistics network strategy is how to fulfil orders in line with the customer proposition in the most efficient way. There are several questions that arise from this objective:

  • 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 last-mile delivery?
  • Which type of vehicles should be used for deliveries?
  • Which activities, if any, should be outsourced versus kept inhouse?
outsourcing_supplychain, KPIs

Most projects that we undertake broadly follow the following 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 when modelling scenarios, but can also include pure scenarios to understand the inefficiencies generated by the current infrastructure or equipment. Our bespoke modelling is supplemented by use of visualisation tools including Centre of Gravity analysis, Starbursts and more.

Network Design, Centre of Gravity
Centre of Gravity analysis identifying the central point inbound and outbound flows

Our extensive experience in evaluating a range of strategic 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 define or optimise an effective logistics network strategy to meet your customer proposition in one of the following ways: