Optimization

Maximizing Within Existing Structures

3 min leestijd

Enhancing Current Systems to Achieve Desired Goals

Often, significant improvements can be made within existing frameworks to meet objectives while maintaining current organizational structures.

Supply chain Management

Key considerations include enhancing product availability, delivery reliability, inventory reduction, and streamlining flows. We assess potential improvements in supply chain management, starting with our assessment or management's inquiries

Data Accessibility, Alignment, and Escalation

Substantial enhancements are achievable by improving access to and alignment of information flows. An initial step involves accessing sales data, a challenge even for companies with direct consumer access. We assist clients in data access and sales forecasting, including selecting and implementing forecasting software. Crucially, proper alignment within the supply chain is necessary, with clear roles for sales, procurement, supply chain, and logistics. While many companies have established S&OP meeting structures, improvements are often needed, such as addressing agenda content, decision-making efficiency, and ensuring appropriate stakeholders are involved. Low forecast reliability is sometimes addressed by adding personnel or software, but this is ineffective for inherently unpredictable sales. A more effective approach involves restructuring decision-making to respond swiftly to forecast deviations.

Warehouses and Distribution Centers

Mechanization: Cost-Effective Solutions Within Existing Operations

There is a growing interest in mechanizing manual logistics processes. Beyond traditional mechanization options like semi-automatic unloading and automated palletizing, innovations in internal transport, such as AGV or AMR vehicles, present new opportunities. AMRs are advantageous due to their obstacle detection capabilities and minimal facility modifications. Their affordability often results in favorable business cases. Cost-effective mechanized alternatives are also available for box and pallet storage, seamlessly integrating into current logistics operations. Supply Today offers comprehensive insights into mechanization options, suppliers, pricing, and proven technologies.

Evolving Warehouse Functions

Traditionally, warehouses serve as storage facilities, but this role is rapidly changing. With increasing throughput times, warehouses are transitioning to cross-dock operations. While constructing new facilities is an option, existing structures can be optimized. Analyses often reveal that certain items require minimal or no storage, creating space for strategic products that enhance stock availability in stores. This approach reduces inventory costs and minimizes or eliminates handling expenses through cross-docking or direct transport. We assist in establishing cross-dock areas and their management.

Implementing a New Warehouse Management System (WMS)

The expectation that a new WMS or ERP system will yield benefits prompts an evaluation of potential improvements. In cases where warehouse management is integrated into the current ERP system, management may seek decoupling.

Supply Today identifies areas where a new WMS can enhance management, leading to increased productivity (fewer FTEs), reduced error rates, improved stock availability, and readiness for future changes, such as mechanization.

We possess comprehensive knowledge of relevant WMS packages to support selection processes. Given the wide range of functionalities and investment levels, expert guidance in selection and implementation adds significant value.

Transport and Distribution 

Challenges may arise from redundancies post-mergers and acquisitions, disproportionate cost increases during growth, decisions regarding insourcing or outsourcing, delivery reliability, and more. Our benchmark database helps clients identify areas for improvement. While modern route planning software has enhanced outcomes,

Transport and Distribution Philosophy

We focus on the underlying philosophy of a company's transport and distribution in relation to its business. To ensure transport and distribution costs align with growth, we assess the suitability of current infrastructure. Do drivers return daily, maximizing equipment utilization, or are they on extended routes? This preference is closely linked to service areas, number of stops, and drop sizes. Opening a new stock point or, as an interim step, establishing a transfer point may be beneficial if density is insufficient. Other optimization factors include equipment type, leveraging off-peak or nighttime hours, and increasing load factors. Enhancing load factors can be addressed practically through pre-loading consolidation or, more advanced, by integrating transport planning with supply chain planning.

Make or buy

Another consideration is whether to manage transport and/or distribution in-house or outsource to a logistics service provider. Arguments for in-house management include strategic reasons, perceived cost or quality advantages, and sentiment. We assist management in making these decisions and support outsourcing processes. Our experts have extensive experience in such projects. We also go a step further when necessary, such as outsourcing transport management (4th party logistics). Often, we help 4PLs, on behalf of our clients, secure top-performing carriers per lane or region. An effective compensation mechanism is crucial in this context.

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