DISTRIBUTION NETWORK OPTIMIZATION

Mergers. Consolidations. Business expansion. Business contraction. All may require changes to your distribution network and transportation modes. Your challenge is to understand the financial and service impact of such changes and recommend the approach that makes the most sense. But often companies move forward without knowing the facts. That’s where Trans-Solutions comes in. We are supply chain consultants that give you the hard data needed to make an informed decision that can save your company hundreds of thousands of dollars.

Our approach to distribution network analysis

Trans-Solutions does both strategic analyses, which allow you to explore a variety of network options at a high level, and practical analyses, which are more granular. Our niche is in the area of practical analyses. Trans-Solutions’ exacting methodology provides precise, objective answers to practical business questions like “How exactly will my costs and service levels change if I relocate distribution from Memphis to Chicago?”

We start by building models that mirror your current operation. Using these models as a baseline, we can analyze a variety of strategic choices and precisely measure the cost and service impact of each new variable. The analysis can include changes to locations, methods, carriers, services, freight rates, and a dozen other supply chain variables. The result is a number you can use to establish your budget.

Beware: modeling tools alone can’t provide the answer

Strategic modeling tools are good for directional input since they allow you to quickly do many “what if” scenarios. But the results are imprecise since they are based on aggregates and averages. Another caution point: many of the supply chain consultants conducting modeling exercises have never run a warehouse or managed freight. Because they have no nuts and bolts operating knowledge, they may not have the practical perspective to know that the numbers don’t make sense.

Before we were supply chain consultants, Trans-Solutions people were engineers, operators and logistics executives. We have designed, operated and managed complex logistics programs in multiple industries. And we bring that practical perspective to every supply chain consulting assignment.

Inventory management

Distribution network optimization must address the critical issue of inventory management. This is an underemphasized aspect of the supply chain that is often not totally within the control people making supply chain decisions. Major decisions continue to be made without due consideration to costs of holding the inventory. If you are concerned with this issue, contact us for a discussion of your challenges. We can share our perspective and point you in right direction.

Need supply chain consulting to support a strategic decision?

Contact us for a detailed discussion of your supply chain consulting or distribution network optimization requirements.