Discovering answers to logistics network redesign challenges with Optihub

3 answers you need to discover when tackling logistics network redesign: - What’s the real impact of network redesign on transport costs, stock levels and overall supply chain agility? - Are we operating too many sites and how well is site capacity being utilised at any point in time under both current and optimal conditions? - Should we be exploring regionalised or centralised models to better meet today’s – and tomorrow’s – customer needs? Optihub provides answers to this so that supply chain leaders strategically position for efficiency and growth.#SupplyChain #NetworkDesign #SupplyChainAgility #LogisticsOptimisation #Optihub

There are still opportunities to innovate with road transportation optimisation. 3 features coming out of Optihub's network analytics and optimisation suite: 1. Identify Consolidation Opportunities: Discover how to consolidate deliveries and adjust routing, leading to significant reductions in transportation costs while enhancing overall efficiency. 2. Address Problematic Supply Locations: Gain insights into which customer locations are difficult to supply from current sites and explore alternative options for a smoother distribution process. 3. Map Customer Cost-to-Serve: Optihub enables you to rank each customer location serviced by your sites, on a unique set of indicators, helping you understand the unique cost-to-serve each location and then make informed decisions to maximise profitability. #Logistics #NetworkDesign #SupplyChain #Optihub

Understanding demand patterns is key to optimising logistics network and supply chain performance. Here are some thought-provoking questions to consider for improving supply chain performance: - How can we enhance our ability to predict and manage seasonal demand fluctuations to ensure our logistics network is running at peak efficiency? - Which territories or regions are we currently serving efficiently and how do our existing constraints impact this? - Can we accurately predict when bottlenecks will occur at each DC / site throughout the week and how can we proactively adjust staffing and logistics movements to mitigate these challenges? #Logistics #NetworkDesign #SupplyChain #Optihub

Highlight some critical considerations and constraints concerning current network design approaches: 1. Comprehensive Input Analysis: Many existing strategies fail to incorporate the full range of inputs necessary for effective network optimisation. A holistic view is essential for making informed decisions. 2. Navigating Customer SLAs and Demand Patterns: Unique customer SLAs, constraints and demand fluctuations pose significant challenges when trying to reduce logistics costs. Understanding these dynamics is crucial for maintaining service levels while achieving cost efficiency. 3. Leveraging 3PL Partnerships: While 3PL partners offer valuable support based on territory, the complexities of a multi-partner framework can obscure their distinct contributions. It's vital to clarify roles and territorial efficiencies to maximise their potential. For instance, a leading FMCG Group using over a dozen 3PL partners recently identified how to reduce site-level 3PL spend by 5 - 7% in less than 2 weeks, simply by modelling and selecting the most cost-effective 3PL partner to use by site. #Logistics #NetworkDesign #SupplyChain #Optihub

Highlight some critical considerations and constraints concerning current network design approaches: 1. Comprehensive Input Analysis: Many existing strategies fail to incorporate the full range of inputs necessary for effective network optimisation. A holistic view is essential for making informed decisions. 2. Navigating Customer SLAs and Demand Patterns: Unique customer SLAs, constraints and demand fluctuations pose significant challenges when trying to reduce logistics costs. Understanding these dynamics is crucial for maintaining service levels while achieving cost efficiency. 3. Leveraging 3PL Partnerships: While 3PL partners offer valuable support based on territory, the complexities of a multi-partner framework can obscure their distinct contributions. It's vital to clarify roles and territorial efficiencies to maximise their potential. For instance, a leading FMCG Group using over a dozen 3PL partners recently identified how to reduce site-level 3PL spend by 5 - 7% in less than 2 weeks, simply by modelling and selecting the most cost-effective 3PL partner to use by site. #Logistics #NetworkDesign #SupplyChain #Optihub

Highlight some critical considerations and constraints concerning current network design approaches: 1. Comprehensive Input Analysis: Many existing strategies fail to incorporate the full range of inputs necessary for effective network optimisation. A holistic view is essential for making informed decisions. 2. Navigating Customer SLAs and Demand Patterns: Unique customer SLAs, constraints and demand fluctuations pose significant challenges when trying to reduce logistics costs. Understanding these dynamics is crucial for maintaining service levels while achieving cost efficiency. 3. Leveraging 3PL Partnerships: While 3PL partners offer valuable support based on territory, the complexities of a multi-partner framework can obscure their distinct contributions. It's vital to clarify roles and territorial efficiencies to maximise their potential. For instance, a leading FMCG Group using over a dozen 3PL partners recently identified how to reduce site-level 3PL spend by 5 - 7% in less than 2 weeks, simply by modelling and selecting the most cost-effective 3PL partner to use by site. #Logistics #NetworkDesign #SupplyChain #Optihub

When planning your logistics network, putting the customer at the centre of your decisions is key to driving both efficiency and profitability.n\nHere are several critical insights to consider:n\n- Which customers consume the most / least resources relative to their profitability, and how can we strengthen those relationships?n\n- What pricing or service level changes are needed to align customer cost-to-serve with their delivered value?n\n- How can we predict changes in customer and product demand and assess the best distribution sites to serve them effectively from?n\nWe think this positions supply chain leaders to make more intuitive decisions around supply chain design, customer service and cost optimisation.n\nAre you utilising your data to align your network with customer value?n\n#SupplyChainOptimisation #CostToServe #Logistics #Optihub

When planning your logistics network, putting the customer at the centre of your decisions is key to driving both efficiency and profitability.n\nHere are several critical insights to consider:n\n- Which customers consume the most / least resources relative to their profitability, and how can we strengthen those relationships?n\n- What pricing or service level changes are needed to align customer cost-to-serve with their delivered value?n\n- How can we predict changes in customer and product demand and assess the best distribution sites to serve them effectively from?n\nWe think this positions supply chain leaders to make more intuitive decisions around supply chain design, customer service and cost optimisation.n\nAre you utilising your data to align your network with customer value?n\n#SupplyChainOptimisation #CostToServe #Logistics #Optihub

When planning your logistics network, putting the customer at the centre of your decisions is key to driving both efficiency and profitability.n\nHere are several critical insights to consider:n\n- Which customers consume the most / least resources relative to their profitability, and how can we strengthen those relationships?n\n- What pricing or service level changes are needed to align customer cost-to-serve with their delivered value?n\n- How can we predict changes in customer and product demand and assess the best distribution sites to serve them effectively from?n\nWe think this positions supply chain leaders to make more intuitive decisions around supply chain design, customer service and cost optimisation.n\nAre you utilising your data to align your network with customer value?n\n#SupplyChainOptimisation #CostToServe #Logistics #Optihub

Many supply chain leaders struggle with gaining clear visibility into the true costs and efficiencies of their distribution networks. Current network optimisation approaches are often rigid and fail to accommodate broader inputs that affect supply chain performance. To make smarter decisions, we must first ask the right questions: -What is the baseline cost to serve our distribution network given current constraints? -Which regions are we serving efficiently—and where/how are we falling short?-How can we measure end-to-end efficiency at each site, considering both inbound and outbound logistics? Are you asking these key questions as part of your logistics operations planning and strategy? #Logistics #SupplyChain #CostToServe #NetworkOptimisation #Optihub