Supply Chain Strategy
Service
SUPPLY CHAIN STRATEGY
Cost-effective supply chain operations begin with determining the optimum infrastructure. If the number and size of warehouses or cross-dock facilities are incorrect or they are located in the wrong place, the supply chain will not operate at maximum efficiency.
SUPPLY CHAIN STRATEGY
For some operations, the optimal infrastructure solution is relatively self-evident and easy to determine. However, for others, arriving at the correct solution can be very challenging. This is particularly true for operations involving international supply chains, where the trade-off between transport and warehousing costs is finely balanced, or the trade-off between different manufacturing methods and logistics is not straightforward. To cope with the complexity of the problem, many companies simplify the task and resort to ‘averages of averages’. This approach can lead to important details being missed and an incorrect solution being achieved.
FINNHOS LOGISTIC CONSULTANCY MIXED INTEGER INFRASTRUCTURE MODEL
To assist companies in determining the optimum infrastructure, our supply chain consultants have developed a mixed integer infrastructure model to evaluate a range of possible operational solutions quickly and cost-effectively.
The model has several typical uses, including determining the optimum size and location of warehouses, the optimum use of cross-dock facilities, the use of consolidation centers, optimum stock levels by product group, which products should be stored in which warehouse, understanding individual and customer profitability, evaluating alternative customer service levels, and evaluating alternative ‘what if scenarios’.
MODELLING PROJECTS
All infrastructure modelling projects commence by configuring the model to address the specific evaluation required. Data is normally taken at the order line level to capture daily and seasonal variations. Costs and productivity standards can either be provided by the client or, if they are not available, we will use our own. Once the model has been configured and populated with the necessary data, it is a relatively straightforward task to run a series of iterations to evaluate and refine possible solutions.
SPEAK TO A SUPPLY CHAIN CONSULTANT TODAY
Effective supply chain modelling is invaluable for improving decision-making, profitability, and understanding the effect on costs of introducing either tactical or strategic changes. Contact Finnhos Logistic Consultancy today to learn how our advanced modelling capabilities can optimize your supply chain infrastructure and drive efficiency in your operations.