A feasibility study provides a view of the future

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Feasibility studies for logistics concepts and warehousing

It is impossible to decide on a new logistics project without having access to accurate data and information. Groenewout has a long-standing experience in conducting feasibility studies.

What is a feasibility study? In simple terms, a feasibility study is research conducted with the aim of revealing whether the demands placed on the logistics operation can be met in practice. When conducting a feasibility study, whether for broader logistics concepts or for a specific warehouse or production facility, we gather, discuss and evaluate your current and future situations and whether they are realistic, so that you can make a sound decision based on accurate and quantified information.

Feasibility of logistics concepts

At consulting firm Groenewout, we have a proven track record in conducting thorough feasibility studies of logistics concepts as well as designing, optimizing and implementing such concepts. Areas for which a feasibility study can make sense include:

  • Potential expansion of a distribution center
  • Optimal layout and (re)design of a distribution center
  • Identifying the optimal logistics process
  • Gaining insight into the potential savings of a new logistics concept
  • Decisions on insourcing or outsourcing of logistics activities
  • Projecting business cases (‘what if’ scenarios)

Logistics simulations

Within a feasibility study, we also make use of logistics simulations in:

  • Optimizing the design for a distribution center
  • Fine-tuning control parameters for mechanized systems
  • Emulation: testing control parameters and software
  • Visualization
  • Projecting distribution networks
  • Optimizing inventory levels and production batch sizes
  • Scheduling manufacturing processes

Logistics simulations enable you to look into the future and pre-empt many potential problems – whether it is a matter of expanding a warehouse, designing an AGV system, determining the best buffer levels or optimizing inventory parameters. Thanks to logistics simulation, you receive a detailed and quantitatively based insight into the unruly reality.

Feasibility study advice

Are you interested in conducting a feasibility study for a new-build (greenfield) situation, or would you like to explore alternative layouts for an existing facility (brownfield situation)?

We investigate the building-related and system-related possibilities and suggest the ideal logistics design. Once the necessary data and information has been gathered and analyzed, we work closely with you to decide on the optimal logistics building.

If you would like to know more about feasibility studies for logistics or warehousing, feel free to contact our experts.

FAQs

  • A feasibility study is research conducted with the aim of revealing whether the demands placed on the logistics operation can be met in practice. When conducting a feasibility study, whether for broader logistics concepts or for a specific warehouse or production facility, we gather, discuss and evaluate your current and future situations and whether they are realistic, so that you can make a sound decision based on accurate and quantified information.

  • Areas for which a feasibility study can make sense include:

    • Potential expansion of a distribution center
    • Optimal layout and (re)design of a distribution center
    • Identifying the optimal logistics process
    • Gaining insight into the potential savings of a new logistics concept
    • Decisions on insourcing or outsourcing of logistics activities
    • Projecting business cases (‘what if’ scenarios)
  • Please feel free to contact our consultants. We’re here to help!

Need advice?

Topics in feasibility study

Optimal distribution strategy

In order to give you a sense of our consultancy’s approach relating to feasibility studies, we are pleased to outline the project we completed for our client SK-Pharma. SK-Pharma is a pharmaceutical company based in Kazakhstan. One of the company’s key objectives was to win governmental contracts for the supply of pharmaceutical products and related services. For Kazakhstan’s national health service, the country’s government had opened public tenders for both domestic and foreign producers and suppliers. SK-Pharma asked us to conduct a feasibility study to evaluate its logistics network strategy for procurement and distribution. We divided this project into 4 phases, as follows:

  • Defining business requirements and the forecast sales volumes
  • Determining the optimal distribution network
  • The design and layout of the warehouse
  • Investment calculations and the financial business case (with help from E&Y)

Thanks to our advice, SK-Pharma now has strategic financial insight and the optimal distribution strategy. Our recommendations were supported by operational designs of the associated logistics network and the warehouses. In addition, we developed an approach for the transition phase which included aspects such as a human resources plan and consideration of the IT landscape.

The best logistics system

  • Is your logistics operation future-proof?
  • What is the best system for your organization?

Every feasibility study is based on a clear, quantitative foundation thanks to our use of various models that we have developed in-house. However, the quantitative aspects are not the only important element in determining the most effective logistics system.

Qualitative criteria such as flexibility, risks and efficiency are also included and evaluated in the feasibility study.

References

A selection of our customers