Network Optimization

"Close to two decades of experience supporting the Toyota group in NA with innovative logistics and supply chain design, including advanced cross docking and multi-plant logistics." - Takayuki Higashiuchi, President Toyota Tsusho, Inc

We work closely with clients to design a supply chain framework that best supports their overall business and guides ongoing daily decisions. We model the impact of complex, multi-variable alternatives, implement solutions, and adapt as conditions change.

Creating a supply chain network that considers suppliers, production facilities, warehouse locations, transportation lanes, modes, and stocking locations to yield ongoing cost-competitive benefits requires substantial experience. Today’s dynamic business environment necessitates regular assessment of supply chain networks against overarching corporate strategies. Changes in customer demand, cost structures, globalization, outsourcing, mergers and acquisitions are but a few examples of triggers for re-evaluating supply chains.

Supply Chain Network Design involves optimizing the supply chain network by taking into account several factors such as transportation, inventory, labor, storage, and administrative costs. There are often millions of possible scenarios which make it impossible to develop optimal solutions without using technology and sophisticated algorithms and heuristics. Typical questions answered through strategic network planning include:

  • What are the trade-off costs among various service levels?
  • What are the optimal number and locations of distribution facilities?
  • Which manufacturing and distribution facilities should serve a particular customer?
  • Given the location of suppliers, where should freight consolidate and deconsolidate to minimize transit time and cost?
  • What are the various response options to changes in conditions (e.g. supplier locations, demand patterns, cost elements)?

Logikor works closely with its clients and uses its decades of operations management experience to ensure alignment between strategic business objectives and supply chain network design. We identify the constraints and set the rules and decision criteria that will be used in daily planning and optimization of material and information flow. We are able to model and test the implication of changes so that clients can make holistic, fact-based decisions.

Benefits

  • Informed decision making through testing and simulating scenarios prior to committing resources. Supports business case development and achieving buy-in via tangible return-on-investment (ROI) data. Minimizes risk of surprises
  • Alignment between overall business and supply chain strategies including:
    • Sourcing: supplier locations considering lead time, reliability, inventory
    • Production: make/buy, postponement, locations, sizes, product mixes
    • Distribution: supplier-direct, plant-direct, order and shipment consolidation/deconsolidation, consignment, transport modes, leveling
    • Customer Service Commitments: effect of service commitments on profitability
    • Carbon footprint objectives

What We Do

  • Deliver clients comprehensive designs, leveraging the processes outlined below, to make the most informed decisions
  • Parameter driven, sensitivity analysis considering:
    • Service level impact on rates and performance
    • Order lead-time
    • Rate & terms changes
      • Currency fluctuation
      • Fuel price fluctuation
      • Transportation market fluctuation
    • Locations and hours of operation – supplier, manufacturing, distribution, customer
    • Routing options: pooling, multi-pick and multi-drop, milk-runs, zone skipping, continuous move
    • Packaging
    • Private fleet factors
    • All transport modes
    • Regulations
    • Carbon footprint
  • Rate and performance benchmarking
  • Detailed results from optimization analysis:
    • Impact summary on cost and other factors from changes and optimization
    • Summary of the impact of constraints on solution
    • Visual depiction of network with drill-down to detailed routing
    • Visual load configurations (trailer load diagrams)
    • Event statistics
Let us show you what Logikor can do for you.
Take our
self-assessment