Supply Chain Network Design
Designing logistics networks sustainably
Changes in the ecosystem affect the retail logistics network: digital distribution channels require an increased focus on last mile and parcel delivery. Regulatory requirements for sustainability targets intensify the conflict of objectives between cost efficiency and delivery quality. Scaling supplier capacities make it necessary to adjust inbound logistics. In addition, company acquisitions and sales are changing the flow of goods. Established logistics networks are therefore often no longer able to make their value contribution as a successful value creation factor.
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We determine the optimal value contribution of your future logistics network.
In an interactive format, we develop a tangible vision from different perspectives and formulate an action-guiding strategy framework from this, which we evaluate using selected scenario models. The results of our tool-based modelling are highly informative about the optimal value contribution of your future logistics network. We detail the most viable target concept into a transformation project ready for implementation, the realisation of which we carry out together with our clients.
1. Diagnosis ecosystem
Changes in the ecosystem affect the retail logistics network.
2. Identify future scenarios
In an interactive format, we develop a tangible vision from different perspectives.
3. Work out improvements
We formulate a strategic framework to guide our actions.
4. Determine baseline
We determine the optimal value contribution of your future logistics network and detail the most viable target concept.
5. Model & Evaluate
Your logistics network and network costs are precisely determined and serve as a benchmark for future value contributions.
6. Business Case & Implementation Roadmap
We develop a transformation project ready for implementation, the realisation of which we carry out together with our customers.
Our “situation table method”: analysis of the ecosystem, visualisations of the structures and detailed comparisons
Designing the supply chain for greater cost efficiency and customer satisfaction
The design of the supply chain follows business optimisation goals of cost efficiency and customer satisfaction, and secures globally organised trade between suppliers and consumers.
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However, the global economy is facing the influences of multidimensional geopolitical changes that raise fundamental questions about the future shape of the logistics network. Companies should therefore be aware of the impact of de-/ or reglobalisation on demand centres and replenishment right now and assess it in different scenarios.
The strategy consultants of Infront Consulting & Management GmbH in the KPS AG group of companies bridge the market-oriented business model perspective with the assessment of the influences on the logistics infrastructure of the operating model level.
For supply chain design and transformation from a single source, contact us!
How we support your company with the design of your logistics network
Use Case Online Retail
Network nodes and transport flows in online retailing
Together with the online retailer (approx. 900 million euros turnover p.a.), the European delivery network was analysed and a sustainable scenario was modelled, which supports the retailer’s global growth strategy in a stable manner. A holistic view of all network nodes and transport flows (overseas suppliers, production sites, European warehouses, retail branches and end consumers) was relevant, as a large share of drop shipment deliveries prevails in the B2B and B2C customer segments.
- With currently 80% online business and an expansion into brick-and-mortar retail, also with own stores, the logistics network has to cope with the special challenges in the parcel business with high single-quantity volumes and delivery via a part-load and general cargo network.
With the modelled scenario of the future logistics network, it has been possible to design the end-to-end logistics network more cost-efficiently than before, taking into account stable delivery quality.
Use Case Manufacturing Industry
Optimal trade-off between storage and transport costs
The European distribution network for a manufacturer of cleaning and hygiene products with a turnover of approx. 2 billion euros was redesigned. A particular challenge lay in the rather large variety of products and the diversified distribution strategy in supplying food-producing companies, as well as wholesalers and building service providers.
- A qualitative evaluation of various options was followed by the modelling of three selected scenarios with different assumptions and restrictions on delivery reliability and consolidation of warehouse locations.
The optimal trade-off between storage and transport costs resulted in a regional warehouse solution.
Use Case Chemical Wholesale
Central warehouse solution with AI-supported forecast planning
As part of a holistic strategy development for a supply chain transformation, the European delivery network of a chemical wholesaler was examined for optimisation potential.
In addition to the design of a shared service centre for consolidated transport planning and the derivation of a make-or-buy decision for transport management, we evaluated various scenarios for the design of deliveries to workshops with the particular challenge of deliveries between 4 and 8 hours.
We are particularly proud of our solution approach of a central warehouse solution with the help of sophisticated AI-supported forecast planning.
We would like to answer specific questions about your future logistics network
- What relevance do geopolitical changes have for my logistics network?
- What security policy requirements will geographic nodes (suppliers, production plants, warehouse locations) in my logistics network have to orient themselves to in the future?
- How do changing demand priorities determine material flows and the selection of logistics service providers along the supply chain?
