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Logistics Network Strategy

As the world of technology continues to develop, and we continue to operate within an ever-evolving global market; opportunities within the Supply Chain subsequently become increasingly competitive and demanding.

As a result of continual inevitable expansion, supply chains are now extended across a multitude of continents, encompassing both suppliers and customers alike.

Whilst growth is a positive connotation for many businesses, it can also coincide with complications, that arise from the introduction of additional complexities associated with ancillary activities involved, including but not limited to: labelling, packaging, and reverse logistics.

Having a profound impact upon the Logistics and Supply Chain operations within businesses, below are some examples of the circumstances that drive companies to invest in professional support:

• Cost-reduction exercise to seek lower-cost locations for manufacturing sites
• The business has out-grown its current facilities, but is unsure of the most cost-effective way to expand its distribution operations
• Merger or acquisition has changed the shape of the business
• The company is expanding internationally
• New routes to market (e.g. on line, convenience stores) or new product ranges do not fit well within existing facilities
• No such review has been conducted for five or more years, during which time the business has evolved, and the current solution is no longer optimal

The approach of our logistics consultants:

To combine a systematic and evidence-based methodology with close attention to the specific requirements of your business to produce recommendations that are robust and actionable. Our team of professional logistics consultants are experienced and knowledgeable of delivering network strategy projects across all major sectors, in the UK and internationally. Click here to read a case study of a logistics network strategy project for a major supermarket, or here for a case study involving a leading catering supplies company.

Design Considerations

  • What customer service levels are required and to what geographies?
  • How many distribution centres do I need and where should they be located?
  • Should all distribution centre locations hold inventory?
  • What is the optimal configuration considering customer service levels, inventory and logistics/transport costs?
  • How flexible is the logistics network configuration? What is the sensitivity to volume increases/decrease or changes in service levels and geographical footprint?
  • Do we really need a new site or can we reorganise within our existing infrastructure?

Potential Risks

  • Investment in a suboptimal logistics infrastructure
  • Capital outlay on a new facility sooner than necessary
  • Logistics infrastructure does not deliver the expected customer service or growth plans
  • Exposure to fixed costs when there is a decline in sales volumes
  • Unnecessarily carrying additional inventory