Distribution Network Planning & Depot Optimization
Today’s supply chain distribution networks are increasingly complex often compromising of multiple products sources and geographically diverse demand points. Balancing customer demands with transport and operational costs is crucial to maximizing profitability and the location of distribution centers and depots is critical in creating a productive, efficient and cost-effective supply chain network.
Using a distribution network planning and modelling tool can help to optimize the efficiency of your distribution network by identifying the best possible locations for your operation and answer questions such as:
- How many depots does our operation require?
- Where should we put our warehouses?
- Which existing sites should we keep?
- Which depots should we close?
- Which distribution centers should be used for which customers?
- Will the proposed merger save money?
- Will an acquisition be profitable?
Optimize your distribution network and site locations
Deciding on the best locations for your depots or warehouses and how many to have, involves a wide range of criteria.
Factors to consider include the cost of building or renting and running each facility, together with delivery costs, both to the depot and onwards to the customers. Network planners also need to take account of the volume of each demand and the capacities of the depots, before deciding how many sites to have and where to put them.
Optisite looks at all these factors together. The distribution planning and site location modelling software can help you understand the costs of a wide range of scenarios, helping you decide where new depots would be ideal and which sites to keep open and which locations to close.
If you’re considering relocating a current facility, Optisite can carry out cost sensitivity analysis to see the percentage increase or decrease in total cost when a site is moved in any direction away from its current location, enabling you to plan depot locations more efficiently.
Optimizing your existing warehouses or distribution centers
Organisations that want to optimize their existing network of warehouses or RDC’s (Regional Distribution Centers) can use Optisite to plan the most efficient use of those depots. Using Optisite can help you consider which stock to hold in each facility using information about your own supply chain and the locations and product specific demands of your customers. The software can be used to check whether changing a supplier will affect the distribution network and whether serving particular clients from different depots would save money.
Optisite is available either under an annual software licence or on a monthly basis, making it an appealing choice both for ongoing analysis, consultancy work and for one-off projects.
Visit the Optisite page to find out more or call us today to find out how we can help you improve service to your customers, save time and cut costs.