Distribution Network Design
In the wake of increasingly complicated supply chains, distribution network design plays a key role in controlling the cost of doing business. In a world of shrinking margins, controlling the cost of doing business can be the factor that puts your supply chain network optimization goals ahead of your competitors.
Distribution Network Design Solutions
An optimized network reduces overall carbon footprint and results in a greener network while reducing costs. Supply chain network optimization 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 and supply chain network optimization strategies 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 supply chain transportation methods should be used?
Tompkins International pioneered the use of computers for modeling and analyzing distribution networks and supply chain network optimization. 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.
Get a quick look at the powerful impact demand-driven supply chains can bring to your customer satisfaction and operational value in this short video from Jim Tompkins, CEO of Tompkins International, and Greg Brady, CEO of One Network.