Supply Chain Design
The increasing (worldwide) interconnectedness does not stop at value creation structures. However, a company’s procurement, production or distribution structures, which have typically evolved over time, rarely do justice to the essential target parameters of logistics. This presents logistics managers with the challenge of identifying areas with potential for optimization in their established logistics networks. The early adaptation of logistics structures to the increasing demands of a dynamic market environment therefore represents an important strategic task for a company. The choice of adequate target values is of particular importance here, as these may include the design of the network according to response times for spare parts management, transport cost optimization, the carbon footprint of logistics service providers, or the observance of country-specific requirements (Local Content) for local production.
As soon as you make your supply chain more transparent, you are already laying the foundation for identifying the optimization potential in your value network and achieving cost and efficiency benefits. As part of distribution network optimization, we take the structure of your production, warehouse and transport network into account and examine the historical and forecasted flows of goods. Supplemented by company-strategic boundary conditions and company-specific transport costs, a simulation model results, which can be used for optimization purposes, e.g. by deriving and configuring improved logistics structures.
Within your company, value stream-oriented optimization of your logistics processes often holds great potential. Furthermore, the choice of the right degree of collaboration as well as suitable forms of cooperation with your partners can result in further increases in efficiency. This does not only include collaboration with customers and suppliers, but also the integration of logistics service providers and the optimization of chosen transport tariffs. Finally, the choice of the right IT systems for planning and controlling your logistics network can be a lever for performance improvement.
FIR supports you in recognizing and exploiting these and other optimization potentials in your value creation network.