Reduce Costs with Distribution Network Planning

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