The market where Companies operate is characterized by extreme attention to the service level delivered to the Customer while, at the same time, to reduction of logistic costs. Therefore, it is not surprising that a rational, updated and efficient Distribution Network is considered a key element for success. The distribution network, the right allocation of stock along the network, the design of warehouses, the planning of transportations shall guarantee the optimal cost to reach the performance goals, now often of "top" level, suitably combining organization and technology.
The present distribution network is mapped out identifying number, functions and role of the logistical nodes and the main sources and destinations of the goods flows. The costs of housing (storage), handling (handling and order preparation), stock (financial costs and costs relevant to the possession of the goods), transport (primary and secondary costs) and administration are quantified. The analysis is completed also with the comprehension of the service policies and the definition of the risks involved in the present network.
Strategic, technological and organizational options are defined to eliminate the weak points and reach levels of excellence. Alternative solutions are analyzed (even using complex information tools) and described in detail in terms of results that can be obtained, budget, and return on investment, running costs, operational flexibility, realization times and risks.
The actions aiming at obtaining and consolidating the improvements determined in the previous steps as well as the priorities and timing to transform the network are carried out; the Work Group is started, organized and supported. The best levels of stock are defined, each single warehouse is designed according to its role within the new network and the transports are optimized by defining again routes and rates.
Periodical checks of the network status through auditing techniques (stock, warehouses and transports).
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