Optimizing your distribution network
The distribution network forms the basis of every organization’s supply chain. A distribution network comprises every aspect, from modes of transport to warehouses, logistics hubs and transfer points, involved in transporting goods efficiently and effectively within a particular region. Therefore, much can be gained by optimizing your physical distribution network.
Distribution network assessment
Consulting firm Groenewout’s professional advice enables you to get more out of your supply chain and distribution network. Based on a comprehensive assessment of your distribution network and your customer base, we design the optimal network to maximize the efficiency of transport, stock levels and warehouse operations. When advising on distribution networks, we answer questions such as:
- How many warehouses and/or distribution centers are required?
- What is the best location for the warehouse?
- What are the total transport costs?
- Which costs are associated with a distribution center?
- What are the inventory costs?
- What will be the transition costs and level of investment?
In order to give you sound advice on your distribution network, we also factor in the effect of any supply chain changes on your transport, warehousing and inventory costs. This guarantees you a complete overview of the overall impact including pragmatic, tailor-made solutions for direct implementation.
Distribution network study for CIBA/BASF
In order to give you a sense of our approach when providing advice on distribution networks, we are pleased to outline a project we completed for CIBA/BASF. When a new and integral European supply chain strategy was being defined, we were asked to determine the optimal footprint in support of that strategy, with a particular focus on the ideal number of warehouses and their locations.
We delivered the following:
- Optimal European distribution network footprint including the operational logistics costs, level of investment and transition costs
- Evaluation of delivery reliability and lead times
- Profitability analysis
The benefits for CIBA/BASF were as follows:
- Improvements to the European distribution network footprint with potential savings of approximately 10% in the logistics-related operational costs
- A number of quick wins resulting in financial savings and/or improvements to customer service upon implementation
- An MS Access-based tool that allowed various sales and marketing profitability assessments to be performed on the customer portfolio.
Distribution network references:
Productsheet Design of Distribution Network
Click here to download our productsheet on Design of Distribution Network.
Would you like to know more about optimizing your distribution network? If so, please feel free to contact our expert: