Logistics Network Strategy
The Logistics Network is what links manufacturers, suppliers, wholesalers, retailers and consumers; and is therefore a key component within the Supply Chain. Transport, warehouse and distribution centre operations are what link manufacturers to end consumers (directly or in-directly). Dependent upon a strategic planning process, the logistics network within supply chains relies heavily upon businesses taking a holistic perspective at the heart of planning their supply chain processes.
The expert Logistics Consultants at The Supply Chain Consulting Group (SCCG) have undertaken a range of UK and European Logistics Infrastructure and Network Reviews, Strategic and Tactical Development and Optimisation projects (including Implementation Support when required) for many companies and organisations including major UK and European retailers, FMCG suppliers, e-commerce operations, Manufacturers, Wholesalers, Utilities and Construction companies and Third-Party Logistics providers.
Network Logistics Planning and Strategic Design
Network Logistics planning and design involves building transport, inventory and location strategies around your customer service goals, ensuring the total package achieves the best service at the lowest cost. Companies often devote considerable time & expense in ‘optimising’ only one element of the network, failing to notice the negative cost effects this may have elsewhere.
The crucial element in any Logistics Planning and Network Design Strategy is building all the constraints and variables into a single dynamic business model. The team at SCCG are highly experienced at developing these types of models and have the skills to not only build the data model quickly, but to then produce an optimised solution using various programming techniques, and of course, experience, expertise, and some common sense.
Logistics Network Strategy and Optimisation
We regularly undertake Logistics Network Design and optimisation projects with our clients, either as a total review or in specific modules including:
- Cost based Centre of Gravity analysis for single DC and/or multiple RDC locations
- Logistics Network Scenario Modelling
- Complete Logistics network and individual Distribution Centre (DC) capacity assessments
- Optimised distribution network design and appropriate cost modelling
- Transport route scheduling
- Facility to customer alignment
- Vehicle fleet profiling and resource requirements aligned with DC and customer requirements
- Optimised facility design/ layout, handling practices and workflows.
- Optimised target inventories (holding cost vs. ordering cost vs. service).
- Tactical stock location(s) and picking strategies.
- Strategy Implementation Support
- 3PL Evaluation and Outsourcing Tender Development and Management
All our analysis and solutions specific to your requirements are presented with clear and concise rationale and where appropriate costed and tested.
VP UK Operations – Bodybuilding.com
Head of UK Logistics – Balfour Beatty Utility Solutions
Transport Route Scheduling
In a business with its own transport fleet, its transport resources and the infrastructure that supports them need to be periodically reviewed to reflect customer, sales volume and product portfolio changes over time. The costs of a transport fleet often represent the largest element of a company’s cost to market. With increasing fuel prices, and environmental impact considerations, it is more critical than ever to ensure that transport resources are perfectly matched to delivery requirements.
Optimising Fleet Resources
Strategic planning of vehicle resources can be a highly complex process. To design a truly optimised transport requirement a company must be able to consider all variables across the logistics network, using specialist techniques.
The consultants at SCCG utilise a range of highly specialist transport planning software, both industry standard and proprietary systems. Using these systems allows our transport and distribution consultants to consider all variables within a framework of multiple scenarios e.g. what if the vehicle fleet is reduced or requirements change? What if customer orders are delivered between specific time windows, or on a dedicated day? What is the impact of load consolidation and fixed time windows? Etc…
The software modelling supports scenario analysis and enables the transport and distribution consultants to determine the optimal number and type of vehicle resources required; where those resources are best located, and what infrastructure needs to be in place to support them.
From this information, the consulting team can then provide our clients with a detailed transport resource plan which is fully optimised against the business’s needs.
Our Approach to Designing and Optimising Transportation
- Firstly, we work with you to understand your customer service requirements such as order lead times, order frequency and delivery restrictions
- We gather an understanding of how you serve your existing customers by region and sales channel
- Situational analysis is carried out; operational processes and volume flows are mapped and the cost to serve customers is analysed by channel and region
- Based on the situational analysis we make recommendations for cost savings and suggest how to bridge gaps in customer service expectations
- Recommendations include details of the potential return on investment and the ease of implementation
- We will also help you through the planning and the implementation of our recommendations
Customer Needs v’s Optimisation
We understand the balance between customer needs and optimisation. From the implementation of route scheduling software to opening/closing cross dock locations or alternative routes to market for your goods. The Specialist logistics Network Strategy Consultants at The Supply Chain Consulting Group will always provide tailored recommendations for your business that optimise transport and network operations without compromising the needs of your customers.