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Identifying the optimum supply chain strategy and network optimisation is becoming increasingly complex, but the rewards of double digit cost reductions still remain highly attractive.
Supply chains traditionally improved by changing from “pushing” inventory up the supply chain to a model based on demand “pulling” inventory through the chain, reducing excess inventory and the corresponding holding costs. However this requires more frequent replenishments, driving up transport costs. In a world with ever rising fuel costs this may no longer always be the best quick fix strategy. The shift in consumer buying habits from high street to the internet mean that retail supply chains now need to accommodate home delivery. All of these factors add complexity when it comes to finding the optimum supply chain solution and network optimisation.
COST2SERV Network Strategy enables companies with complex national and international distribution networks to formulate their supply chain strategies to identify the least cost method of fulfilling demand whilst maintaining a high customer service level. COST2SERV can be used to improve your network optimisation by: analysing the number, location and capacities of depots and compare these with current and forecast demand in terms of volumes and geography.
Data can be imported through easily configurable spreadsheets and different scenarios can be performed to compare the merits of different strategies. Examples of decisions supported by Cost2Serv are:
- Am I serving my customers from the right depot?
- Where should I put an additional depot and what capacity should it have?
- Can I reduce my sourcing costs?
- How do I reduce my Transport Costs?
- What is the impact / cost of extending the customer base?
- Can I achieve the same service level and reduce cost by changing my network design?
- What is the impact on transport of changing delivery frequencies / delivery days?
- What cost savings could be realised through integrated transport: Primary / Secondary / Customer Collections?
- How do I reduce inventory costs and maintain high service levels?
- Where should I manufacture product to minimise my overall Supply Chain costs?
- How should I stock build to ensure high availability during peak operation?
To understand how your business can benefit from a Network Optimisation tool please click here…