Reduce Costs with Distribution Network Planning
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An offshore manufacturer improved its North American distribution network by relocating a warehouse and utilizing multiple U.S. warehouses, leading to a 20% reduction in logistics costs while maintaining or improving service times. The DNP modeling was key in identifying optimal warehouse locations to enhance delivery speed across the continent. The document suggests that these changes could open opportunities for increased business due to cost savings and better service.
Reduce Costs with Distribution Network Planning
- 1. Distribution Network PlanningSmall Network Changes lead to Big Profit Increases
- 2. SituationOffshore Manufacturer used four US warehouses to support North AmericaManufacturer shipped to one US warehouse, stocked other sites from thereMultiple distribution points were needed to provide fast delivery to customers throughout the continent
- 4. Distribution Network PlanningDNP modeling was employed to determine the best location for US distribution pointsGoals:minimize total logistics costsminimize service times to customersActions were to relocate one warehouse, and to ship from the manufacturer to multiple US warehouses
- 6. Results20% reduction in total logistics costsEqual or improved service times to customers throughout the continentAnalysis model in place, ready to adapt to changes in customer base, location, demands
- 7. OpportunityWhat 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?
- 8. Experts inDistribution Network Planning
- 9. Pricing Strategy & Tactics
- 11. Marketing Strategy & Implementationinflect@wi.rr.com262-271-4116