Designing a logistics network involves locating new distribution centres, warehouses, and production sites to improve the supply chain network.
It’s not just about finding the right locations though. There are over 30 variables that a network review should consider. These include labour availability, proximity to suppliers and customers, and transport connections. We’ll work with you to create smooth flows between your distribution centres, ensuring your supply chain is reliable and cost-effective.
Also known as distribution network design, the primary goal of this process is to minimise costs while meeting (or exceeding) your service level requirements, and maintaining the flexibility to adapt to future changes.
We’ll support your project from start to finish. We’ll evaluate your current supply chain and logistics network, generate and evaluate alternative network strategies, and stress-test options over a 5-15 year period, considering:
The number of sites, storage points, and cross-dock locations you have. We’ll understand the functions of each location and seek to reduce total activities end-to-end. Providing you with a more efficient logistics network.
Reviewing a logistics network provides an opportunity to investigate how the introduction of warehouse automation can reduce cost and improve efficiency. Its use can also reduce the footprint of a new warehouse, through increasing product storage density.
Product flows and replenishment within distribution networks ensure efficient movement of goods through the supply chain. We’ll factor this into our recommendations to minimise inventory costs and maximise service levels.
We’ll ensure order fulfilment frequency and lead times are factored into the logistics strategy we recommend for your business. These are crucial factors that determine the speed at which orders are processed, so we’ll ensure we get this right.
Most businesses don’t have forecasts beyond 3 or 5 years. A new warehouse development is likely to be a 15-20 year investment. We’ll help you evaluate the range of variables, illustrate how they affect investment decisions and ensure that you are making a fully informed decision on your future supply chain network.
We’ll ensure that your network can scale and adapt dynamically to evolving market demands, planned business growth and incorporate future thinking to be prepared for upcoming developments.
– Freight Transport Association (FTA) – Logistics Report 2019
It’s essential that we work with your finance teams to build consensus on logistics costs, benefits, and impacts on broader operations. Our modelling will provide detailed calculations for space, volume, and expenses, including operational costs, stock holding costs, and one-off costs of change.
Securing approval for new business processes can be time-consuming. We’ll engage stakeholders across your organisation to gather feedback, inform decision-making, and deliver a supply chain and logistics network that aligns with your business ambitions.
A robust logistics network design ensures the efficient and cost-effective movement of goods from suppliers to customers. It also helps to support business growth and scalability, enhances customer satisfaction through reliable deliveries, and provides the flexibility to adapt to changing market conditions.
A well-designed and reliable logistics strategy will improve business efficiency, reduce transit times and operational costs, offer significant cost savings, and enhance customer satisfaction with faster, more reliable deliveries. The strategy should also accommodate business growth and be able to adapt to changing market conditions.
The duration of a network optimisation project varies based on the network’s complexity, specific goals, data quality, the range of options to evaluate and technological integration. Typically, a high-level optimisation process takes 6-12+ months. This will include time for detailed data analysis, strategy development, implementation, and in-depth monitoring. The end result is a business case that inspires confident investment decisions.
At Hatmill we helped a well-known kitchen supplier streamline their logistics network by consolidating 8 separate distribution sites into a single distribution centre (DC) and head office. We led the project from design through to implementation, developing a business case, managing procurement, and coordinating with contractors. The team redesigned operational processes and ensured the project was completed on time and within budget, resulting in a more efficient and future-ready logistics network that improved overall operations and employee engagement.
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