While supply chains are extended and lead times grow longer, customer service expectations are rising. Distribution costs are increasing at a faster pace than product prices, a situation that only exacerbates the margin pressure companies are currently experiencing. Managing a tight supply chain is one key to increased profitability. An optimized distribution network will reduce logistics costs, improve asset utilization, increase inventory turns, and enhance customer service levels. Network design is the first step toward creating streamlined supply chain.
Strategic network design has proven effective at:
Most companies, though, do not have the personnel or the right tools to perform this analysis on a regular basis. As a result, logistics decisions are made based on intuition rather than data-driven analyses.
TOTALogistix has the expertise and resources to provide the insight you need to drive costs from your supply chain. Our experienced professionals use state of the art modeling tools to combine sophisticated data analysis with valuable human insights to create high-impact solutions.
Analysis of a major consumer electronics company’s supply chain enabled implementation of a redesign that reduced costs by a double digit percentage, and dramatically improved service levels. (See case study below).
Actions: TOTALogistix conducted a strategic network design:
Project Time frame: 60 – 120 days
Results: After implementation, the company: