Network Design
Are you confident that your current distribution network is the most efficient and effective given your suppliers, products, your customers and your current transportation profile? If you have doubts, we can help.
While supply chains get extended and lead times get longer, customer service expectations are always on the rise. In the commoditized world, more and more companies face severe margin pressure as product prices decrease and supply chain costs increase. The key to a successful enterprise is a tight supply chain that addresses the twin challenge of decreasing costs while improving service levels.
The first step towards achieving a tighter supply chain is a strategic network design that begins with reevaluating the existing manufacturing and distribution network. 80% of supply chain ROI is determined by strategic supply chain decisions and analysis. The strategic network design is at the top of our solutions pyramid and impacts several aspects of the supply chain. An optimized distribution network will increase asset utilization by releasing tied up capital, better deploy inventory, increasing turns, reduce transportation costs, and improve customer service level.
A recent study by Aberdeen group indicates that most companies look at their network design once every two to five years while best in class companies evaluate their networks at least once a year. However, most companies do not have the resources in terms of personnel and technology to perform this analysis on a regular basis or as and when needed. The inefficient and ineffective network that results is based on intuitive decisions rather than decisions made on data based analysis. Our experienced analysts use state of the art modeling tools to combine data based analysis with valuable human insights to provide high impact solutions that will differentiate you from your competition in the short and long run.
Strategic network design is a good solution for you if
- You want to improve your existing service levels
- You plan to open a new manufacturing or a distribution facility
- You intend to move or close an existing facility
- You are reevaluating your transportation modes and profile
- You want to know which customers should be served from which facility
- You want to know what inventories to hold in which facility
- You are in a acquisition or divestiture mode and need information on how your network would change as a result
Typical benefits of strategic network design include
- 10-20% savings in distribution costs (transportation + warehousing costs)
- 15-20% reduction in inventory
- 30-50% improvements in delivery performance
Project Timeframe: 60 – 90 days
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For more information, please contact us