Post on 16-Apr-2017
Distribution Network Planning
Small Network Changes lead to Big Profit Increases
Situation
• Offshore Manufacturer used four US warehouses to support North America
• Manufacturer shipped to one US warehouse, stocked other sites from there
• Multiple distribution points were needed to provide fast delivery to customers throughout the continent
Existing Network
Distribution Network Planning
• DNP modeling was employed to determine the best location for US distribution points
• Goals:– minimize total logistics costs– minimize service times to customers
• Actions were to relocate one warehouse, and to ship from the manufacturer to multiple US warehouses
Improved Network
Results
• 20% reduction in total logistics costs• Equal or improved service times to customers
throughout the continent• Analysis model in place, ready to adapt to
changes in customer base, location, demands
Opportunity
• What could YOU do with a 20% reduction in total logistics costs?
• How much more business would you get with improved service times?
• How can you use the experience of Inflect to optimize your distribution?
• Experts in• Distribution Network Planning• Pricing Strategy & Tactics• Profit Improvement• Marketing Strategy & Implementation
• inflect@wi.rr.com• 262-271-4116