Wednesday, August 22, 2012

It's the Network:

Strategic network design streamlines your supply chain for a boost in profitability.

Supply chains can be baffling. How confident are you that your current distribution network is the most efficient and effective given your suppliers, your products, your customers and your current transportation profile? If you have doubts, TOTALogistix can help.

Managing a tight supply chain is one key to increased profitability. An optimized distribution network will reduce logistics costs, improve asset utilization, increase inventory turns, and enhance customer service levels.

Network design is a major step toward streamlining your supply chain. A recent study by Aberdeen Group indicates that most companies look at their network design once every two to five years, while best-in-class companies evaluate their networks at least once a year. Most companies, though, do not have the personnel or the right tools to perform this analysis on a regular basis. As a result, transportation and logistics decisions are made based on intuition rather than data-driven analyses.

Typical benefits of strategic network design include:

• 10-20% savings in distribution costs (transportation plus warehousing costs)

• 15-20% reduction in inventory

• 20 - 30% improvements in delivery performance

TOTALogistix has the expertise and resources to provide the insight you need to drive costs from your supply chain. Our experienced professionals use state-of-the-art modeling tools to combine sophisticated data analysis with valuable human insights, creating high-impact solutions for an amazing boost in profitability. How much money could this save you? The answer is as close as your cell phone.

Kirk Shearer
800-989-0054 x103

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