LOGISTICS NETWORK DESIGN

Determine the optimal number and location of plants and warehouses, customer allocation, and product flows in the network

Context

We have designed a comprehensive and cost effective solution to perform network design at world-wide, regional and local level

Our solution can optimize Cash flow (inventory levels), Costs (warehousing and transport) and Service levels (on-time delivery) based on a set of advanced analytics.

In the current dynamic and ever-changing business environment, the level of complexity in supply chain is getting higher. This often leads to the requirement of re-engineering the supply chain to meet higher customer service levels at the same or lower cost. The typical scenarios need to analyse:

  • Changes in government regulations (such as tax, incentives) that impact the supply chain, especially the ongoing USA-China trade tarrifs

  • Merger & Acquisitions requiring to rationalize and redesign the network to avoid overlap

  • Growth plans that require a need to check the suitability of the network to support the plans

In most industries, 80% of the total costs is determined by the supply chain network, so designing the most optimal way to structure the network and the product flows is a critical task better not left to ‘ad hoc’ decision making. Leading companies have realized this deserves a proper engineering approach with a professional tool.

Our Approach

Forizons performs logistics network design through sophisticated and robust tools we have developed inhouse and deployed on our projects. The strategic analysis can help companies make decisions such as:

  • Right location and number of plants and warehouses

  • Determine the optimal capacity of facilities and stock levels

  • Defining the optimal flow of products through the network to minimize the transport cost while meeting service levels

FORIZONS 

NETWORK DESIGN 
FEATURES

Case study

CASE 1: Forizons helped one of the largest tyre manufacturing companies
to redesign their European distribution network.

3 scenarios were built to compare various costs, capacity and FTE utilization ratios.
The most optimal distribution center locations were determined based on the model to minimize cost while ensuring service level.

CASE 2: For an aerospace company, Forizons optimized its global supply
chain network and achieved 10% cost savings.

 

The company has now adopted the use of our network design tool as a regular process in order to continuously look for network optimization opportunities.

Impacts

+9%

Service level optimisation

-28%

Inventory reduction

-10%

Logistics cost reduction

Clients

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