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Network Design Solutions
Logistics network design is a vital strategic decision. It is very important to allocate the customer demand points to warehouses, and allocate products from warehouses to production plants. The best configuration must be able to deliver the goods to the customers at the least cost (commonly used objective) while satisfying the service level needs.
Network Design: Key Issues
- Pick the optimal number, location, and size of warehouses and/or plants
- Which plant/vendor should produce which product?
- Determine best distribution channels
- Which warehouses should service which customers?
Data for Network Design
- A listing of all products
- Location of customers, stocking points and sources
- Demand for each product by customer location
- Transportation rates
- Warehousing costs
- Shipment sizes by product
- Order patterns by frequency, size, and season, content
- Order processing costs
- Customer service goals
DC Design and Layout
Several basic principles that apply to warehouse layout design and running an effective distribution center operation. Without the proper layout and design of your distribution center, no matter the square footage, you will face capacity issues, decreased productivity, and storage inadequacies.
- Determine the Objective of the Facility
- Define Volumes and Functional Requirements
- Match Storage Modes, IT Systems and Mechanised Technologies with Volumes
- Cargo flow within DC
- Close to Zero Material Handling
- Consult Widely as the Design Process is Multifaceted, Involving Executives,Managers, Operators, Equipment Suppliers, Builders, Architects, and Councils
Freight & Inventory Audits
- The transport bills processing and related operations alone is voluminous and often a de-centralized operation. Freight contracts can be exceedingly complex. Likewise, freight and value added services invoices are accompanied by numerous supporting documents.
- With complexity of the freight quotes and unique rate structures for warehouse activities, organizations conduct cost verification checks to keep a tab on the transportation spend. Nevertheless, it should also be noted that freight cost verification exercises are vulnerable to human and process errors.
Inventory Audit
- Wall to Wall Count
- Asset Audits
- Scanned Audits