We’ll tell you the optimal number & location of distributions points.
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 to make decisions that result in six and seven-figure savings to your organization.
Our approach to transportation network modeling
Trans-solutions does both strategic network optimization projects and practical network optimization projects, which are more granular.
Strategic analyses are comprehensive projects that allow you to explore a variety of distribution network options at a high level.
Practical analyses, our niche at Trans-solutions, can be done in a fraction of the time and far more affordably than a comprehensive study. These practical modelling projects are designed to provide precise, objective answers to real business questions like “How will my costs and service levels change if I relocate distribution from Memphis to Chicago?”
- Read our paper “Practical, Affordable Distribution Network Modeling.”
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
Transportation network modeling tools are good for directional input since they allow you to quickly do many “what if” analyses. 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 simply don’t make sense.
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 of people making supply chain decisions. Major decisions continue to be made without due consideration to the 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.