Logistics Network Design
Bisham Consulting has the necessary commercial expertise and practical operational experience you need.
We critically evaluate the performance and robustness of your current and future supply chain networks. Bisham uses many different propriety modelling tools to help design optimised supply chain networks for our clients. The focus is on maximum improvements on the minimum budget.
This covers the physical location of DCs, cross-docks and production facilities, inventory policy and optimisation of transport volumes. Whatever the format and scope of your existing network we are sure we can help.
You may have a domestic network in a single country serviced by a dedicated fleet or multiple facilities across the world. Either way, we can show you how to achieve immediate benefits.
Network Design and Review: Typical Client Challenges
- Is our distribution network fit for purpose? If not, what do we need to do to make it so?
- How do we rationalise our current network and make it robust enough to service future business growth plans?
- How do we maximise customer service levels efficiently in a fast-changing market-place?
- How efficient is our existing network in terms of cost and service level performance?
- How can we ensure a more effective deployment of stock?
- Can we improve the return on capital employed?
- How can we adapt the network in the light of the new business strategy?
- What are the key risks our business will face in rationalising our existing network operations?
- What is the true cost of servicing our customers?
- How do we make change happen without disrupting customer service levels?
- Just as important, can we ensure there are no unacceptable levels of risk?
Logistics Network Design: Service Elements
Physical Infrastructure Review
Bisham Consulting can undertake network design, as a stand-alone project or as a part of another project. This could be aimed at optimising a specific aspect of the supply chain. The objective is to achieve the optimal logistics network with the minimum expenditure.
- Review of physical logistics infrastructure and locations.
- Centre of gravity modelling to ascertain likely potential options for optimisation modelling.
Logistics Network Review Strategic Transport Network
- Review all existing planning processes and their effectiveness
- Optimisation of strategic transport plans, be it dedicated fleet or multi-mode networks
- Assess the use and set-up of existing planning applications
Review Inventory Policies
- Overall stock deployment model
- Application of demand planning processes
- Effectiveness of inventory management
General Scenario Modelling
- Adding, closing or change the use of locations, based on COG models.
- Integration or synergy impacts of collaboration such as acquired companies.
- Cost and service-level impacts of potential logistics changes.
- New routes to market.
- Assessment of financial and service-level impacts.
Specific ‘What if’ Scenario Modelling
- Detailed overlay of different operational assumptions
- Delivery profile changes
- Volume growth projections
- Inventory level changes
- Improved transport planning processes
- Sensitivity analysis of model outputs
- Assessment of detailed financial and service-level impacts
Logistics Network Design: The Client Benefits
Bisham’s consultants have conducted a wide range of network optimization projects in the UK, Europe, US and globally. The benefits that have been delivered to our clients include:
- Rationalised DC infrastructure
- Reducing the number of DCs required to service a regional market.
- Creation of an optimally located centralised DC.
- An associated reduction in inventory levels, through consolidation of safety stocks.
- New and Optimised Transport Network Design
- Improving vehicle utilisation through improved usage over the day and week.
- Maximising vehicle fill will mean less wastage.
- More efficient sub-contracting strategy.
- Use of appropriate modes and shared-user networks.
- Improved Planning & Resource Scheduling Capability.
- Introduction of improved planning processes.
- Improved mode selection.
- Intelligent use of sub-contractors.
- Use of Transport Management Systems to improve lead times.
- Improved Inventory Management.
- Appropriate and better-defined stock-keeping rules.
- Focus on specific demand points within the organisation.
- Improved demand management processes.
- Inventory that matches service level aspirations.
- Cost reductions and/or service level improvements.
- Cost reductions will be obtained in the range of 8% – 30%.
- Improved order cut-off times.
- Improvements in 1st-time pick availability.
- Modelled Costs for Different Potential Network Set-Ups.
- Improved decision-making based on total logistics cost modelling. This includes cost and the service-level impacts of any potential changes.
- Improved budgeting of logistics costs
Logistics Network Design and Logistics Network Review: Modelling Tools
For network modelling, Bisham uses a variety of tools. We choose the best application to match the scope, scale and composition of the customer’s network. Optimising and design software will fall into a number of categories, aimed at either daily, tactical or strategic planning.
For networks containing a significant element of own-fleet or dedicated sub-contracted resources, we may prefer PTV Optimiser. This was formerly known as DPS. Another good choice is the Paragon system.
More complex regional or global networks usually involve multiple sites, inventory and multiple transport modes. In this instance, we would consider Llamasoft’s Supply Chain Guru tool. This was formerly known as CAST Aurora.
There are also a number of tools that are designed to specifically analyse the “cost to serve”. This relates to specific customers, customer categories or markets.
In summary, the key is to select the right tool for the job. Bisham Consulting ensures the project is conducted efficiently. It will be cost-effective and geared to delivering optimum results.