Supply Chain Network Design - storage.googleapis.com · SUPPLY CHAIN NETWORK DESIGN An Instant Assessment of Supplier Direct, Domestic and Import Distribution in Australia and New

Copyright © 2019 Logistix Solutions LLC. All Right Reserved.

SUPPLY CHAIN NETWORK DESIGN An Instant Assessment of

Supplier Direct, Domestic and

Import Distribution in

Australia and New Zealand

Logix Rapid Response® is a free service that

allows you to compare your distribution

network to the ‘Optimum’ network using

Logistix Solutions’ Logix Supply Chain

Optimization software. This assessment is

an approximation only. A complete network

design would require additional input and

refinements.

Contact [email protected] for a free comparison using your current distribution center locations.

___________ … _____________

LOGISTIX SOLUTIONS IS THE LEADING PROVIDER OF ON-DEMAND SUPPLY CHAIN OPTIMIZATION SOLUTIONS. LOGIX SOFTWARE IS USED BY FORTUNE 500 COMPANIES, THIRD PARTY LOGISTICS PROVIDERS, CONSULTANTS AND FAST-GROWING ENTERPRISES WORLDWIDE TO OPTIMIZE THEIR DISTRIBUTION NETWORKS FOR OPTIMUM PERFORMANCE, SERVICE AND COST.


Assessment Model

Distribution to customers

throughout Australia and

New Zealand with domestic

and international suppliers. Ports of Entry /

Suppliers

Candidate DCs

Customers

Logix optimally selects suppliers, ports of entry and the optimum combination of Distribution Center sites using average transportation rates and demand represented by population data for over 500 cities and towns. The assessment also optimizes Supplier Direct distribution from an Australian supplier to determine which customers can be more economically served directly from the Supplier vs. through a Distribution Center.

Two Site Solution

Auckland NZL

Sydney AUS Inbound Cost: $2,878,840

Outbound Cost: $10,615,220

Warehousing Cost: $1,675,903

Total Cost: $15,169,963

A minimum of two Distribution Centers

are used in this assessment due to

the unique geographic logistics between

Australia and New Zealand.

Supplier Direct Distribution Logix can also determine the optimal distribution allowing any Supplier to distribute products directly bypassing Distribution Centers in the network.

In our example, Aus Supplier located in Geelong VIC directly ships to over 170 customers throughout Australia even though charging a premium of $10.00 per shipment for a savings of over $65,000.


Three Site Solution

Auckland NZL,

Sydney AUS and

Perth AUS

Inbound Cost: $2,944,440



Total Cost: $14,777,204

Each Distribution Center has a Fixed

Cost of $25,000 plus a Variable Cost per

unit which varies for each DC by product.

Predictive Analytics

ProLogix’ Predictive Analytics pinpoints each of your supply chain problem areas including a comparison of average vs site specific cost and service for each customer location.

The transportation cost for Cairns AUS from the distribution Center in Sydney is slightly above average (shown in yellow in this example), whereas the service level (shown in red) is critically above average.

Proximity Analytics

Using a unique feature called Proximity Analytics, Logix can pinpoint the exact optimum site location in relation to any

existing or candidate facilities or even

Greenfield.

In this example, the exact optimum

Is located anywhere up to 100 km

West of the facility in Oxley Park with

essentially no difference in cost or 0%.

The clear advantage is finding the

right facility at the right cost in this area.


Four Site Solution

Auckland NZL

Sydney, Perth and Melbourne Inbound Cost: $2,994,141



Total Cost: $14,491,351

Service has improved to 95% one day

delivery from 79% using only two DCs.

Five Site Solution

Auckland NZL, Brisbane,

Sydney, Perth and Melbourne




Total Cost: $14,411,274

The Six and Seven site solutions both an

increase in cost to $14,436,526 and

$14,462,533 indicating no further benefit

from expanding the network at this time.

Charts, Analytics and Metrics

Complete the picture showing

potential trouble spots, capacity issues, long term trends, best and worst case service and cost and areas for potential improvement.

Logix can also incorporate

pooling facilities, cross docks,

inventory costs, green house

gas emissions, greenfield,

DC capacities and other factors

in its optimum calculations.


Free Assessment of Your Distribution Network

For a free assessment of your distribution network compared to this model supply chain, contact [email protected]. Just tell us the location of your distribution centers and we’ll send you a free analysis and comparison via email. Here’s an example of what you’d receive showing a side by side comparison of your distribution network and the ‘optimum’ solution if your distribution centers are located in Melbourne VIC and Auckland NZL.

Two Site “Your Network”

Auckland NZL and Melbourne VIC




Total Cost: $15,359,566

Two Site Optimum Solution

Auckland NZL

Sydney AUS Inbound Cost: $2,878,840



Total Cost: $15,169,963

Savings Potential: $189,603 and a 9% Service Level Improvement

If you’d like to add more details or make further refinements to the assessment model, download the Logix Supply Chain Optimization and Distribution Network Design software and we’ll help you set up your supply chain model.

Contact [email protected] for a free demo or for a subscription to Logix or call us at 571 426 5951. You can also visit www.logistixsolutions.com for more information.
mailto:[email protected]:[email protected]://www.logistixsolutions.com/

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Supply Chain Network Design - storage.googleapis.com · SUPPLY CHAIN NETWORK DESIGN An Instant Assessment of Supplier Direct, Domestic and Import Distribution in Australia and New