Optimization of distribution network to enhance cost efficiency and service levels.
Approach
- Create As-Is supply chain costs and flows profile using shipping data
- Setup a model structure suitable for answering key business questions
- Create a Network model to simulate baseline costs and profile
- Run and validate the baseline with actual supply chain for flows and cost
- Align on key scenarios and create scenarios to test future state supply chain configurations
- Run optimization to determine costs and service levels for the location of the second distribution center (DC)
Results
- Recommended optimal future state network footprint Network Footprint
- Optimized facility-customer assignments Facility-Customer Assignments
- Optimized inventory-DC allocations Inventory-DC Allocations
- Create business case for location strategy including qualitative assessment Business Case
Segment: CPG / Food & Beverage · Services: network-distribution, supply-chain-planning