Distribution Network Design optimizes the most significant assets that effect costs and service to customers: the location and number of distribution points relative to markets and inbound sources. By leveraging solid project management methods and world-class modeling capabilities, Analytic Impact can help businesses realize improved returns on invested capital and reduced operating costs while maintaining or improving service performance.
Typically, businesses which haven’t formally analyzed their overall distribution network design within 3-5 years can realize cost savings of up to 15% of total delivered cost. How? A distribution network can quickly become inefficient, or non-optimal, due to changes to the business’ structure, such as adding new market channels, shifting demand patterns within a market, acquired (or divested) businesses, and transportation and warehousing cost dynamics.
Combining advanced analytical modeling with dynamic, interactive analysis of business choices, Analytic Impact facilitates the discovery, understanding and alignment to the best course of action to take. Areas explored and analyzed may include:
- Market growth or decline over time for products
- Number, location and mission of distribution points
- Cost and service impacts of changing modes of transportation
- Which customer locations should be serviced from each location
- Where should inbound materials and products be sourced from