FLOWS AND LOGISTICS ENGINEERING

Understand and improve your logistics costs

Context

Most of the industries are uncertain about their current warehouse and transport operation costs and the future trend of the logistics costs.

Forizons' Flow Value Model is a methodology to answer your logistics-related questions of your organization. The methodology is a combination of activity-based costing approach and our logistics process expertise, which will drive the discussion of productivity, capacity and logistics costs related matters within your organization.

Flow Value Model drives the discussion of the following topics:
  • Productivity related
  • Capacity related
  • Mix of both

Forizons' methodology models your current operations with an activity-based costing approach. This provides a detailed baseline budget for your logistics flows. This can be used to do benchmarking and various 'what if' scenario comparison.

Our solution relies on 20 years of Forizons experience in the design of complex logistics networks and in the optimization of end-to-end flows

Forizons' Flow Value Model captures the main cost components of a supply chain, either for one site only or for all sites in a local or international supply chain:

  • Transport and warehousing cost

  • Labor cost

  • IT cost

Forizons 

Flow Value

Model

Our Approach

1. DATA COLLECTION

  • Products and flows segmentation

  • Transactional, organizational and inventory Data

  • Financial Data 

  • Service levels (SLA)

  • Growth projections

2. AS-IS MODELING

  • Detailed solution modelling including flow and process mapping, org chart, equipment, site lay-out etc.

  • Variable and fixed cost allocation ; reconciliation with financial budget

  • Capacity utilization analysis

  • Validation of model accuracy

3. TO-BE MODELING

  • Define future scenarios (products, flows, lay-out, growth, automation opportunities, order profile etc.)

  • Update the model for future scenarios (segmentation, flows, process, financial, SLA)

  • As-Is & To-Be scenarios comparison

  • Recommendations for improvement

  • Roadmap for implementation of target future scenario

Case Study

CASE 1: Forizons helped one of the largest aircraft manufacturer to model and simulate logistics flows and cost.

The global logistics cost in multiple warehouses was reduced by 15%.

CASE 2: For a Logistics Service Provider, Forizons simulated and proposed different layout scenarios that led to a significant logistics cost reduction.

Impacts

-15%

Logisitics costs reduction

2

Months (ROI)

+20%

Space optimisation

Clients

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