Optimised Distribution
Strategies
9 May 2016
Introduction
Current market conditions determine that companies should be
operating in the most cost effective manner in order to compete.
Warehousing and transportation are significant cost contributors
to the final sale of products, and inefficiencies in these areas can
lead to loss of sales or hidden costs.
Optimising the handling of product from the time it arrives in your
warehouse to the time it is delivered to your customer is an
opportunity to manage and reduce the final delivered price and
help improve your margin.
Introduction
The Supply Chain
Supplier
Raw Material
Processing
Production/
Manufacturing
Wholesale/
Retail
Transport
The purpose of the presentation is to focus on warehouse and transport
optimisation strategies to reduce cost and improve customer satisfaction.
Warehousing
Background
•
Historically the core responsibility is for the storage of goods
•
Core responsibilities have evolved to include best practice
operations to meet the needs of customers through inventory
management, visibility, pick pack operations, value added
services, replenishment and dock management.
•
Warehouse operations are key to inventory management,
demand planning, lead time reduction and speed to market.
Warehousing
Challenges
•
Increased productivity
•
Inventory accuracy
•
Cost reduction
•
Safety stock and stock out’s
•
Demand planning
•
Seasonal fluctuations
•
Lead time
Warehousing
Optimisation
•
Space optimisation
•
Inventory planning and optimisation
•
Reduced capital tied up in stock
•
Fast moving and slow moving stock
•
Dock management
•
Picking process
•
Load planning
Transport
Challenges
•
Outsourced versus owned fleet
•
Visibility of cost of transport operations
•
Number and size of vehicles required
•
Visibility of actual delivery activity
•
Delays at customer locations
•
Routing and adherence to plan
•
Working hours and customer timings
Transport
Considerations
•
Fleet quantity and capacity
•
Customer location
•
Customer availability and service time
•
Number of orders for delivery
•
Time
•
Distance
•
Specific attributes, e.g. Tail lifts or delivery helper
Transport
Transport
Route Optimisation
•
Minimized kilometres
•
Maximum utilization of fleet and vehicle capacity
•
Maximum use of time
•
Customer specific requirements met and measured
•
Visibility and planned activity versus actual performed activity
•
Productivity reports
Conclusion
Utilising optimization software, warehouse audits, process
improvement and planning can result in significant cost savings
to your business enabling cost reduction or competitive
positioning of your product.
These solutions are available in market and can be brought inhouse or implemented through service partners.
Thank you