Logistics Network Design and Optimisation
Logistics networks are a connection of all the points in the supply chain where material moves to, and from. Logistics networks are the ‘life blood’ of a business. Over time these networks often become fragmented; as territories change, customer ordering patterns fluctuate, sales volumes increase or decrease and as companies invest and divest, so the network can lose its efficiency.
It’s critical to periodically review your network, effectively ‘defragmenting’ and ensuring maximum service at the most efficient cost. Delivering efficiency in a logistics network is probably the most major lever in reducing logistics costs. Correctly aligning and optimising infrastructure and resource to supply and demand points can have a significant return on investment.
How Our Logistics Consultants Can Help
Our Logistics Consultants have a wealth of expertise in both designing and implementing efficiency within logistics networks. From designing domestic transport operations through to outsourcing international freight, and from warehouse process improvements to the design of major distribution centres, our logistics consultants know how to deliver.
We can use our expertise to identify, design and implement potential efficiency improvements throughout a clients logistics network. We are able, using our own proprietary modelling tools and operational experience, to model and scenario test every aspect of a logistics network. Please click on the tabs below to read about some of the areas where we can assist.
We are able to model the most efficient fleet profile and transport routing for both trunking and delivery networks. This can be done with a view to implementing an in-house fleet or benchmarking a 3rd party logistics provider solution. Read more about our transport routing service.
Using our in-house developed tools our logistics consultants are able to determine the optimal number and geographic location of warehouses required for a network. This is achieved through centre of gravity analysis combined with balancing transport costs against facility and inventory costs. Read more about our Warehouse Location Analysis.
From reconfiguration of an existing facility through to green-field design, our warehouse design consultants can help you ensure that every facility is configured for optimal efficiency. However, it’s not just the CAD design that we can provide, we can also design all the required Standard Operating Procedures and fully implement all required changes. Read more about our Warehouse Design service.
There are many logistics operations where it makes sense to outsource to a 3PL (3rd Party Logistics Provider). This can be driven by cost of entry and economies of scale, for example with international freight, or by the specialist knowledge and facility requirements for some ecommerce operations. Our consultants can help you identify if there is a business case for logistics outsourcing and then fully manage the outsourcing process for you. Read more about the steps we take when we manage logistics tenders.
Logistics networks aren’t just about the vehicles, facilities and routes: they are also concerned with the material that moves through them. Over-stocking and duplicate stocking across a logistics network can not only increase operating costs, but it also has a significant impact on working capital.
Our logistics consultants are highly skilled in determining where inventory should be located, the most efficient handling methods and also the optimal inventory levels. Read more about how we can help you manage inventory.
Even where a logistics network is physically well optimised, poor processes can still cause inefficiency. Our consulting team are able to audit, rewrite and implement operational processes, from warehouse operations through to manufacturing operations, using experience and knowledge of methodologies including Kaizan, Six Sigma and TQM. Read more about our Operations Management service