Network Design

Our primary focus and key service we offer our clients is network design. We help to find a feasible and robust network solution. Where to locate our warehouses, how many do we need, what is their size. Due to changes in the environment like globalization, new markets opening up, mergers, acquisitions, new suppliers, and new customers, the performance is constantly under pressure.

Does our network still fit our needs? And is it still cost efficient? Answering these questions can be a tedious task and quite complex. Without some sort of structural approach or reduction of the problem it is virtually impossible to search for improvements. We offer a comprehensive approach to optimize the network and search for improvements. We use a state of the art modeling platform to help companies review their structure: LogicNet Plus XE. Network design is still one of the most strategic decisions to take, entailing the structure of the network, where to locate plants, warehouses, capacities, customer assignments, and service levels.

The first step in the approach is to assess the need for change. Are there crucial changes, internal and external, that induced the need to change the network structure of alignment? All sorts of analysis are possible Greenfield, current structure, What if we change our service? What if the market in Eastern Europe grows with 15%, What if , the fuel prices go up with 20%, What if, terrorist attack takes out our major port of entry?

We have a long track record when it comes to network design and we make use of the absolute state-of-the-art. To map and design logistics networks we use the network optimization tool LogicNet Plus XE that enables us to successfully translate the business strategy and customer service objectives into efficient network solutions.

We use this packaged network design and planning approach that combines the advanced optimization technology with an easy-to-use graphical user interface to manage the world’s most complex supply chains. What makes us unique is the fact that we combine this strategic network design tool with our accurate transportation rates (collected in Nestor™). This enables us to design logistics networks based on accurate rates and carrier performance. In the picture above a typical output is presented. Based on the number of warehouses, the total cost break-down is presented.

This post is also available in: Dutch

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