Warehouse Logistic

The warehouse has a significant impact on the service level (it shall guarantee suitable lead times through processes and structures reducing errors and damages to the minimum) and the running costs (on average one fourth of the total logistic costs); it is therefore clear that it shall not be considered an unavoidable cost but rather one of the competitiveness levers. The modern warehouse has now become a rather complex and advanced "machine" combining information and material handling technologies; this is why its design and/or its optimization shall be dealt with suitable levels of competence and professionalism.

Main areas of intervention

  • Optimizing the warehouse performances by defining processes, organization and operational procedures, layout and handling (also considering the suitability of automated systems), equipment and information tools. The interventions, concerning both the reorganization (and/or extension) of existing warehouses and the design of new ones, can have different degrees of details: from the Feasibility Study to the Project Management, passing through the Working Plan;
  • Analysis and definition of the organizational structure to define the organization chart, the Job Description and the Operating Procedures;
  • Audit of the warehouse activities based on the analysis of the structure and allocation of costs, identification and assessment of the most significant KPI, definition of the improvement actions and performance targets;
  • Warehouse master plan to rationalize space and check any development line according to the prospects of growth;
  • Analysis of the activity with a continuous improvement approach, aimed at studying operating processes, identifying critical or low added value phases and calculating productivity by means of modern surveying tools;
  • Analysis of convenience and assistance to the implementation of warehouse software tools, drawing up also the technical/operating specifications, assistance to the selection of the product and supervision to implementation;
  • Dynamic simulation carried out with advanced software tools and aimed at assessing highly automated projects or installations (storage, sorting and transport systems performances);
  • Analysis of the convenience to outsource the warehouse based on the definition of the right operating methods, contractual aspects, rate structure and KPI to be managed with the Third Party;
  • Design and installation of logistic instrument panels conceived with Business Intelligence techniques to control the warehouse KPI;
  • Training of the warehouse personnel on the best practices and the continuous improvement approach (using coaching, on the job techniques, etc.).

the method


The strong and weaknesses of the current Supply Chain are defined, determining the possible interventions and underlying the expected improvements, the requirements needed to obtain them, the risks as well as the necessary time and resources.

Feasibility study

It defines the strategic, technological and organizational options to eliminate any weak points and reach excellent levels as regards efficiency, accuracy and service. It determines alternative solutions which are analysed and presented, defining their values in terms of achievable results, budget and return on investment, operating costs, flexibility, and realization times.

Detailed project

It is the analytical project of all components of the Logistic System to issue the drawings and technical and functional of requirements necessary to launch the tenders for contract.

Management of the implementation

Technical assistance to tenders, check of the technical content and project time schedules of vendors bids, logistic project management and on-site supervision, personnel training and assistance to inspections, start-up and commissioning of the Logistic System are the services offered to support the Customer.

Periodical control of efficiency

After commissioning, the results actually reached are checked together with the causes of any deviations from set goals, while new targets to be achieved are defined in a logic of continuous improvement.

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Simco Consulting can support you to improve transport logistics management.
In terms of costs of distribution (transport, stocks, warehouse, distribution administration), transport costs represent on average almost half of the total; of course, it is possible to highlight some deviations that are very important in relation to the specific product sector under examination: average, transport costs weigh upon the costs of the physical distribution.

It may often happen to neglect opportunities coming from aspects linked to transport such as the nature and type of packaging or Shipping Units and the upstream and downstream co-operation with suppliers and customers.

Simco gives its support to improve performances and reduce transport costs taking care of:

  • Analyzing traffic flows, redefining routes and delivery paths using advanced mathematical algorithms developed using specific optimization software tools;
  • Determining the vehicle saturation levels and defining the best loading procedures;
  • Assessing the convenience of "make or buy" choices within the transportation management, selecting the industry operators and giving support for the tender;
  • Analyzing and evaluating existing contracts and determining the best rate structure and contractual model also according to updated law revisions;
  • Designing and installing logistic instrument panels to control the transport KPIs using Business Intelligence techniques;
  • Training and supporting the involved distribution Human Resources by defining their role and duties within a wider frame of streamlined organization aimed at obtaining higher levels of efficacy and efficiency

the method


  • Analysis of the current situation concerning transports. We start by analytically gathering all costs (inner and outer) linked to transports and the activities strictly related to them.
  • We analyze the origin and destination of transports and calculate the reference parameter for the convenience calculations (€/kgkm, €/mckm, other specific).
  • We evaluate the present service level and the expectations of both the company and the customers.

Definition of the best network

Strategical, technological and organizational options are defined to eliminate weak points and achieve excellence levels. Alternative solutions are analyzed (even using complex information tools) and widely described in terms of attainable results, budget, return on investment, operating costs, operational flexibility, completion times and risks.

Project completion

The actions aimed at achieving and consolidating the improvements determined during the previous phases are developed together with the priorities and the scheduling; the Work Group is started, organized and supported.

Monitoring of results

Periodic assessment of the transport situation through auditing techniques.

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Production logistic

The new dimension of competitiveness requires a quick response in presence of reduced volumes and a high mix. The Productive-Logistic System shall be consistent with the demand of diversification and cost control from the market.
Technological content investments, necessary to obtain the competitive advantage, are by their nature rapidly diffusive and quickly cancelled by the competitor answer. Organization, processes, methods, and productive-logistic culture of the company are the only really unique and sustainable elements.

Main areas of intervention

  • Analysis of processes and used resources, analysis of organizational structure;
  • Factory masterplan;
  • Planning of production and management of production capacity, lean production techniques;
  • Analysis, control and reduction of the "work in progress" and lead times;
  • Department or factory layout, positioning and interlocking of lines and work centers;
  • Analysis regarding the introduction of production software (planning, scheduling, MRP I and II, ASP) and support to start-up;
  • Check of the handling systems and the production launch ways through dynamic simulation;
  • Review of "set-up "times and methods; procedures information systems and methods tuning and start-up;
  • Definition of qualities and characteristics of the product, methods to arrange and operate Product Sheets;
  • Definition and optimization of the system to launch production lots and control the work progress;
  • Implementation of production "Panels" for reporting, and the control of productivity and production cost trend;
  • Analysis of the work in the department to study processes, productivity, saturation and determine critical or low added value phases, by introducing a method of continuous improvement into the company.

the method

Preliminary analysis
Starting from the existing organization and production reality, it defines the interventions needed to reduce and eliminate inefficiency areas. Options are examined on the basis of the cost/advantage analysis and also according to the available human resources establishing, if necessary, the new functional organization chart. Possible alternatives in the approach to production are evaluated, also according to the Marketing inputs and the market characteristics, setting the guidelines for the following change and improvement actions. Upon agreement with the Customer Management, the priorities of intervention as well as the implementation times are established.

Project implementation
During this phase, all actions aiming at obtaining and consolidating improvement are carried out. The Customer Work Group is started, organized and supported and the correct method approach to motivate, coordinate, integrate existing qualifications, control results and set again intermediate goals is supplied. An activity to spur and smooth the difficulties obviously liked to the development of a new project is carried out at the same time.
Standard procedures for the periodical control of efficiency, the evaluation of achieved results and the definition of new goals are set

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Supply chain consulting

Simco is one of the most important Italian consulting and training companies in the Logistic field. Since 1981, when it was established, it has been developing over 2.000 projects for more than 500 Customers of different sizes and sectors.
Our mission consists in combining skills and technologies to analyze and improve processes, motivate and qualify Human Resources in order to control and develop the company overall performances. Logistics plays a strategic role in ensuring company competitiveness: an essential value in which every action must be governed by a careful and solid organizational strategy.


Logistics consultancy becomes essential to manage the complexity of company operating processes and to ensure the right level of customer service; it’s important to choose how to organize the warehouse, what level of automation to introduce, whether or not outsourching logistics, and other issues of great relevance such as the stock level and how to organize the distribution network.


Our mission is to combine skills and technologies, analyze and improve logistics processes, motivate and qualify Human Resources in order to control and develop the company's overall performance.


Our method does not supply standard solutions but rather offers a customized approach, tailored on the real needs of the Customer and inspired by reality and innovation. Special attention has been devoted to the use of advanced tools in order to have the project results certified by complex analyses. For more than 20 years Simco has been using the dynamic simulation as well as innovatory products for stock assessment, factory layout control, palletizing scheme definition, transport route optimization, project data elaboration, methods time measurement (MTM), and the creation of balance scorecards to monitor KPIs.
Simco can develop a cooperation relation which goes from the definition of improvement and change actions up to the support during implementation, to ease and check the goal achievement.


To describe in detail fields and methods of our intervention we propose the following outline, even though we are convinced that the best results are often obtained by integrating the studies of the different areas:







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