Changing the distribution network design affects the following supply chain costs: • Inventories • Transportation • Facilities and handling • Information As the number of facilities in a supply chain increases, the inventory and resulting inventory costs also increase as shown in Figure 4.2. 0000004388 00000 n
As a result, you’re not providing the best service at the lowest possible cost. 0000000768 00000 n
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H��Vɒ�6��W�H�$���žęq�l.WFNS>`HH�E��O?p��\� �-�����ͳ�6d��n2��_ƒ��, ����g�&f�q�����ͳ��ۛ�ms��x���#>���a����p��x�V>���4�� �Y�����Mȳ5���G����3 Did your Distribution Network just evolve over time in an unplanned fashion? 0000001412 00000 n
- Logistics & Materials Handling Blog | Adaptalift Hyster", "How to Reduce Costs through Supply Chain Network Optimization", "When is it a good time for supply chain network design? 0000004164 00000 n
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Behind these graphic outputs lies a comprehensive cost, resource and demand database and optimisation engines, that provide a rigorous cost/benefit analysis. [4] Supply chain network design is sometimes referred to as 'Network Modelling', due to the fact a mathematical model can be created to optimise the supply-chain network. A supply-chain network can be strategically designed in such a way as to reduce the cost of the supply chain; it has been suggested by experts that 80% of supply chain costs are determined by location of facilities and the flow of product between the facilities. 0000004936 00000 n
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]�;iԾV���R�;el�;�t��J{�큩� v�5M��ݖ_]6��>�I̓��i��xL��Jܧ��jU!�nZ�¬R�%a�V6醺q/N���YUz�g�y�u���%j���)�y��v���֖Gi�lk��VO�5�~Y������ Physical locations included in a supply-chain network can be manufacturing plants, storage warehouses, carrier crossdocks, major distribution centres, ports, intermodal terminals whether owned by a company, suppliers, a transport carrier, a third-party logistics provider, a retail store or an end customer. [1], Businesses are often part of a larger network of organisations, a supply-chain network can be used to highlight interactions between organisations; they can also be used to show the flow of information and materials across organisations. 0000001722 00000 n
Bosch can quickly assess the state of a motor reducing the cost of inspection and disposal, thereby increasing their profit margin on refurbished power tools.[8]. If these issues sound familiar, we can probably share some solutions with you. Distribution networks, or indeed whole Supply Chains can easily be modeled. 0000002521 00000 n
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We’ll be happy to share our experience. �,��o+X�C��1{�p�$��e����e6K�|���,Y,,��
�/���lZ��R��`�2�J��ը��m��̷Y��(�z�.�y�ᘑ�dI5#�����%��3 This can be due to mergers and acquisitions, entering new markets, expanding product ranges or indeed changes to the regulatory environment. This particular network design addresses logistical issues such as collection, processing and recycling of end-of-life goods. A supply-chain network (SCN) is an evolution of the basic supply chain. The risk to the supply-chain network can be minimised by being well prepared for potential events. Specialist Supply Chain network modeling software is used to allow cost and service optimisation of the network to be established. [7][9], Bosch is a company that capitalises on this closed-loop system by building sensors into their power tool motor. [8] Through this, organisations can support goods from production to disposal creating a 'closed-loop system'. Transportation modes that operate within a supply-chain network can include the many different types of trucks, trains for boxcar or intermodal unit movement, container ships or cargo planes. The business requirements of a network will change over time. 0000000671 00000 n
Following on from this, there is also no single optimal SCN design, in designing the network there is an apparent trade-off between responsiveness, risk tolerance and efficiency. All organisations can purchase the components to build a supply-chain network, it is the collection of physical locations, transportation vehicles and supporting systems through which the products and services firm markets are managed and ultimately delivered. These types of projects are normally carried out as a result of significant business growth, acquisition, or a need to reduce supply chain complexity and costs. The design should also include details of the number and location of facilities: plants, warehouses, and supplier base. Logistics Bureau’s consultants have conducted 100’s of network studies for a vast range of customers, across a variety of industries and in many countries. Is it configured to provide the best service at the lowest cost? Warehouse (Distribution Centre) size, location, resources, costs…, Improved understanding of customer service needs and options, Appropriate balance of storage, inventory and transport costs, Graphical mapping of customer demand and density, Access to leading distribution network modeling tools and methods, Also, this type of work is often linked with customer profitability analysis, product profitability analysis and Cost To Serve (CTS) audits. Logistics Bureau’s consultants have developed a ‘fast track’ network modeling approach for those companies that merely want to quickly test a range of distribution network options at a high level, or do not have the ability to gather detailed cost data on their own networks at this time. [10], Document automation in supply-chain management & logistics, Examples of reverse supply network design, Building a Flexible Supply Chain Network from SC Digest, "What is a Supply Chain Network? trailer
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[10], An uncertainty can be categorised as 'endogenous' when the origin of the risk is within the supply-chain network itself, such as market volatility or technological turbulence. There are many systems which can be utilised to manage and improve a supply-chain network include Order Management Systems, Warehouse Management System, Transportation Management Systems, Strategic Logistics Modelling, Inventory Management Systems, Replenishment Systems, Supply Chain Visibility, Optimisation Tools and more. Based on 100+ similar network studies, our specialist consultants are able to apply market based costs for your warehousing and transport operations. Emerging technologies and standards such as the RFID and the GS1 Global Standards are now making it possible to automate these Supply Chain Networks in a real time manner making them more efficient than the simple supply chain of the past. [10], By distinguishing between these types of uncertainty, an organisation can decide the best approach to risk management.
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