Logistics & Transport

Service Description

Why do you need to model your Supply Chain, Logistics or Distribution Network Design? ​ The business requirements of a network will change over time. This can be due to mergers and acquisitions, entering new markets, expanding product ranges or indeed changes to the regulatory environment. Logbiz ’s consultants have conducted 100’s of network studies for a vast range of customers, across a variety of industries and in many countries. This experience shows us that for companies that have never undertaken such a study or that have undergone or plan to undergo significant change in their Supply Chain, there is a high degree of risk that: Network costs could be 10-15% higher than expected norms. Service lead times may be adversely impacted. Excessive product damage could be occurring. Inventory investment is abnormally high. Product availability is a major issue. Read on to learn more about our approach and see some articles on the topic, or if you would like help in understanding the topic, or just someone to bounce some ideas off, feel free to contact some of our key staff directly, whose details are shown below. ​ Network Modeling Approach Our distribution strategy consultants can determine the optimal Supply Chain or Distribution network to satisfy customer demand at specified service levels and at the lowest cost. Specialist Supply Chain network modeling software is used to allow cost and service optimisation of the network to be established. Networks can be modeled from factory to the consumer, taking into account all the key cost and service drivers such as: Customer location Order size and frequency Transport costs Transport vehicle types Transport modes Warehouse (Distribution Centre) size, location, resources, costs… Service level requirements Factory and supplier locations Ports of entry for imported products and many more key variables We have also developed a fast track network test, that uses market based warehouse and transport costs, read more below. These types of projects are normally carried out as a result of significant business growth, acquisition, or a need to reduce supply chain complexity and costs. A recent internal review of our work in this area over the last 12 years (100+ projects), indicated that businesses undertaking these projects saved between 4% and 14% of distribution costs. ​

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