Logistics Network Design is all about Balance

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To optimise a logistics network requires an understanding and balance of many key factors. Therefore, not surprisingly, it can be a challenging and time-consuming task to undertake. Given that it is a significant expenditure, and product delivery often represents the ultimate interface between you and your customer, it cannot be ignored.

1. Why Optimise your Network?

Whether it’s changes in retail channels or marketing strategy, company mergers or acquisitions, branch closures and competitor activity, optimising your logistics network can be fundamental to delivering an effective business model with low cost and high service levels.

2. Factors to Consider

Transport, inventory and location strategies depend upon your customer service goals, product range and prevailing costs and legislation. Often companies invest in optimising one element of their network and fail to appreciate the impact on other areas.

3. Data Collection

It is vital to understand all the constraints and variables within your operation and combine these with the collation of key data - order size and frequency, customer locations, transport rates, service offering, product dimensions etc. - all of which build into a dynamic model to compare scenarios.

4. Scenario Modelling

Once the model is built it provides the basis to develop and test a number of network options, from alternative numbers and locations of hubs to differing lead times and service levels, fleet types and transport modes, and to compare cost and service.

5. The Optimised Network

The team at Davies & Robson have the skills and experience to build appropriate models quickly and to enable an optimised solution to be identified using a blend of mathematical modelling, industry expertise, operational knowledge and - of course - common sense.

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“Davies & Robson quickly understood the specific logistical challenges and operational issues inherent to our business. Their pragmatic approach and depth of industry experience were invaluable as they were able to appraise and model strategic supply chain options and then identify suitable partners who could deliver the required service. Their management of the outsourcing exercise has enabled us to establish a new partnership with Archbold which is already helping to improve our customer service and reliability.”

COLM FITZPATRICK, CUSTOMER SERVICES MANAGER, KILWAUGHTER MINERALS LIMITED

“Davies & Robson transport consultants provided an insightful review of the options available to optimize our distribution service and the potential cost savings achievable, and enabled a number of ‘what if’ scenarios to be tested and explored.”

LISA DERBYSHIRE, DIRECTOR OF OPERATIONS AND SUPPLY CHAIN, CENTAUR SERVICES

“Davies & Robson's supply chain consultancy brought a new perspective to our operations. Working with the existing team they identified clear, deliverable actions that would improve our utilisation and open up the capacity for new customers.”

RUSSELL ATKINSON, MD, MOVIANTO UK

“Davies & Robson logistics consultants again provided a very responsive service and the quality and relevance of their report was extremely useful in our strategy review.”

RICHARD HORTON, HEAD OF TRANSPORT DEVELOPMENT, TRAVIS PERKINS GROUP

"Davies & Robson helped us to analyse our distribution issues and develop an optimum strategy, and ran an extremely professional tender process."

MARK ROWLATT, HEAD OF SUPPLY CHAIN, TATE & LYLE

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How we can help

Designing and improving transport operations has been a core speciality of Davies & Robson for nearly four decades. Our specialist tools, industry knowledge, and practical consultancy experience enable us to continue to support both users and providers of distribution services year after year.