How to put the customer at the centre of your logistics network decisions

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

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

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

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

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

Have you ever wondered how much untapped potential lies hidden in your supply chain data?n\nLet’s dive into a few key questions that could unlock serious cost savings and efficiency gains:n\n- How can we utilise data to pinpoint underperforming routes or carriers and make smart decisions about alternative options?n\n- Can we dynamically attribute specific movements to a designated 3PL supplier based on data-driven recommendations, to optimise costs and/or improve service levels?n\nWhat kind of cost reduction could we see if we reconfigured the utilisation of suppliers at one or multiple sites?n\nThe answers to these questions could completely transform your logistics network. Optihub provides Supply Chain leaders with evidence-backed insights to fuel innovation, service improvement and efficiency.n\n#Logistics #NetworkDesign #SupplyChain #Optihub

When it comes to fulfilment capability and logistics spend management, selecting the right model (in-house-vs outsourced) and right 3PL partners is not straighforward.n\nHere are some essential points to consider:n\n- What is the total cost of ownership for 3PL services compared to managing logistics internally? You need very sophisticated simulations to get close to the mark.n\n- How do you measure 3PL performance and which KPIs are critical to evaluating their impact on your overall supply chain? You need a holistic view of cost, service quality, agility for scale and network strength to ensure alignment with your strategic goals.n\n- How can you maximise the utilisation of 3PL services to reduce costs while maintaining the flexibility and service standards your business demands? You need to identify how 3PL cost structures correlate with your distribution network and be agile enough to select 3PL partners based on regional or modal capabilities.n\n#SupplyChainManagement #LogisticsOptimisation #3PL

When it comes to fulfilment capability and logistics spend management, selecting the right model (in-house-vs outsourced) and right 3PL partners is not straighforward.n\nHere are some essential points to consider:n\n- What is the total cost of ownership for 3PL services compared to managing logistics internally? You need very sophisticated simulations to get close to the mark.n\n- How do you measure 3PL performance and which KPIs are critical to evaluating their impact on your overall supply chain? You need a holistic view of cost, service quality, agility for scale and network strength to ensure alignment with your strategic goals.n\n- How can you maximise the utilisation of 3PL services to reduce costs while maintaining the flexibility and service standards your business demands? You need to identify how 3PL cost structures correlate with your distribution network and be agile enough to select 3PL partners based on regional or modal capabilities.n\n#SupplyChainManagement #LogisticsOptimisation #3PL