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In the
wake of increasingly complicated supply chains, distribution
network design plays a key role in controlling the cost of
doing business. And, in a world of shrinking margins, controlling
the cost of doing business can be the factor that puts you
ahead of your competitors.
Distribution Network Design Solutions
An optimal
distribution network is intelligently designed to minimize
costs by providing the customer the right goods, in the right
quantity, at the right place, and at right time. A tall order,
right? In most organizations, controlling distribution costs
involves striking a balance between warehousing and transportation.
While more distribution centers drives down the cost of transportation,
the opposite holds true as well. Tompkins distribution network
design services attempt to answer questions like:
- How
many DCs should you have?
- Where
should they be located?
- What
should be the configuration and strategy of each DC?
- Which
group of customers should each DC service?
- How
will customers order from and how will each DC be replenished?
- How
should shipments be scheduled?
- What
should the service levels be?
- Which
transportation methods should be used?
Tompkins
Associates pioneered the use of computers for modeling and
analyzing distribution networks. Nobody does it with the depth
of understanding or attention to detail that we do. We choose
from an array of the best modeling tools to best suit each
client's operation.
Understanding Distribution Network Design
Because
the volatile forces at play in the market today can cause
a company's momentum to vanish into thin air, we design into
your distribution network the flexibility to adjust to changing
market conditions, including:
- Geographic
shifts in production and consumption
- Market
segmentation, new markets and new customer service requirements
- Cost
increases in energy, plant and equipment maintenance, and
labor
- Government
regulation or deregulation
- Product
proliferation and product life cycle
- Competitor
adjustments
- Events
in the economy
Not only
will we create the most demand-flexible, cost-effective distribution
network, as a full-service consulting and integration firm,
we can build it for you and step you and your employees through
the transition to the new network. Tompkins can provide your
firm everything from site selection and real estate services
to construction and integration services.
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Distribution
Network Analyses
Some
of the analyses performed during a distribution network design
project:
- Demand
Analysis
- Transporatation
Analysis
- Economic
Analysis
- Sensitivity
Analysis
- Alternatives
Analysis
- Model
Validation
Resources
Case Study: Burt's Bees (PDF)
Book Excerpt: Flexible, Adaptable, Redundant and Secure: Strategies for a Resilient Supply Chain
White Paper: "What's So Special About Direct to Consumer Distribution Center Implementations?"
Performance metrics monitoring targets optimal DC capital investments.
DC slotting reduces labor, operating costs
White Paper: Designing
a distribution network to address today's challenges
Case Study: Solid distribution strategy for Performance, Inc. (PDF)
Learn More About Tompkins
Associates
To learn more,
simply complete our Information
Request Form.
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