There’s more to consider than just cost-to-serve
Like any network, unless approached holistically, its success is only as good as the balance and optimisation of each of its parts. Optimising one or two elements may deliver a lower cost-to-serve but negatively impact on others, increasing lead times, and reducing customer satisfaction and market share.
The optimal solution depends on the interrelation of many variables:
• product/freight profiles
• customer ordering habits, geography and sensitivity to lead times
• supplier locations and ports of entry (domestic/international)
• warehouse / DC locations and size
• materials handling equipment (including automation)
• transport options and cost
• inventory management systems and processes.
Prological’s consultants have decades of experience delivering network design optimisation projects to some of Australia’s most sophisticated manufacturers, suppliers and retailers.
We help you understand the influence of these variables on warehouse and transport costs, inventory levels and service lead times, and their critical role in maximising your bottom line and market growth.
Prological’s dynamic network modelling
Our dynamic network modelling begins by defining your constraints, risks, variables and objectives.
We then carefully integrate individual component strategies into a cohesive whole that delivers more than just a reduction in costs, but also the flexibility to satisfy a wider customer base with differing service level and lead time sensitivities.
- Network design analysis – Audit and analysis of each component of your current network configuration
- Iterative modelling – of a variety of scenarios so each component is optimised in balance to deliver a high performing, scalable network design
- Evaluation – In house vs 3PL evaluation
- Configuration – Warehouse / DC configuration capacities and design
- Materials handling – MHE, automation and processes mapping and re-engineering
- Transport analysis – options, configurations, providers and routing
- Selection – specification, tendering, selection and engagement of 3PL or other service providers
- Interrogation – of each option’s financial, operational and customer service level cost and value
- Transition – planning and management that mitigates risks whilst migrating to the agreed solution
- Completion – managing the transition project to completion