Distribution Network Planning

Location Modeling, Logistics and Distribution Network Analysis

We use geographic center-of-gravity computer models to identify an optimal supply chain footprint for our clients. This process balances inbound and outbound freight costs against strategic service levels to answer critical infrastructure questions. We analyze various transport modes, including ocean, rail, container and parcel, to determine where facilities should reside for maximum efficiency. Our team evaluates whether a large centralized distribution center or smaller regional nodes better suit the specific needs of a business. We also address the sizing of each facility and which specific items should be housed in each location based on inventory depths. By mapping the existing network and identifying suboptimal areas, we can model viable alternatives that account for current liabilities.

• Geographic center-of-gravity modeling

• Centralized, regional, hub and spoke, and cross-dock models

• Multi-mode freight analysis (ocean, rail, TL, LTL, parcel)

• Inventory depth mapping per location

Supply Chain Strategy Development and Master Planning

To architect a logistics strategy, we begin by defining service level agreements based on customer requirements. These goals can range from traditional wholesale freight models to e-commerce models requiring same-day or one-hour delivery. We evaluate alternatives using metrics like capital cost, recurring expenses, capacity and return on investment. Our team identifies volatile variables and performs sensitivity testing to understand potential impacts before major investments are made. We focus on bridging the gap between high level theory and the practical application of material handling systems and information technology. This cross-functional approach delivers a unique supply chain value proposition that helps differentiate our clients in the marketplace.

• Customer SLA definition

• Wholesale to rapid e-commerce modeling

• Capital and recurring cost evaluation

Operations Audits

We conduct operations audits as a cost-effective method for identifying supply chain opportunities by measuring current performance against industry standards. Our consultants and analysts perform site visits to observe every aspect of the warehouse lifecycle from receiving to shipping. The resulting scorecard report analyzes the delta in up to 100 sub-categories, including supplier management, inventory control and load consolidation. These audits are scalable and focus on uncovering areas where productivity can be increased while reducing operational expenses. We provide a roadmap for both short term and long term improvements based on these identified gaps. If the audit results support further action, we can also perform subsequent re-engineering and optimization projects.

Third-Party Logistics (3PL) - Insource or Outsource

Deciding whether to insource or outsource warehouse operations requires a thorough analysis of the operations performance gap. We define the delta between current efficiency and what is actually possible through internal optimization. This ensures that any comparison with a 3PL proposal is based on an accurate internal baseline. If the analysis favors outsourcing, we assist with the selection process by identifying what information providers need to accurately quote requirements. We assist with the bid process and perform comparative analysis of the responses to ensure the best fit for our clients. Even when execution is outsourced, we emphasize that ongoing strategic management cannot be outsourced and must remain an internal priority.

• Operations performance gap analysis

• Optimized internal baseline establishment

• 3PL bid process assistance and comparison

Project Management and Distribution Network Planning Support

We provide project management and systems integration to ensure facility launches are executed properly. Our engineers manage the project schedule and monitor critical path elements to keep timelines on track. We coordinate the activities of all participants, including vendors and software developers, to deliver a functional operation. This operational support removes the burden from client teams who are often occupied with daily management roles. We believe that even a strong design requires distribution network planning support during the rollout of new systems and processes to produce results. We also offer interim leadership and staff augmentation to support organizations during periods of transition or stress.

Computer Simulation Modeling and Distribution Network Planning

To reduce risk, we utilize computer simulation modeling and distribution network planning to test operations before capital expenditure. Our engineers build models to emulate existing operations or predict the performance of proposed designs. We create a baseline model and validate it against historical data to serve as a measurement for future alternatives. This testing identifies bottlenecks and capacity constraints before any physical implementation occurs. We perform cost and benefit analyses of various facility characteristics, systems and labor strategies. Our methodology allows companies to run what-if scenarios in a controlled test environment rather than during peak season volumes.

• Digital emulation of existing operations

• Historical data validation

• What-if scenario testing