Laying the Foundation for New Designs and Optimization

Network and Location Studies

In these studies, we determine the optimal number of production and/or warehouse facilities required, their specific functions, and their ideal geographic locations. The new infrastructure must meet required service levels for delivery time and reliability at the lowest possible cost. Beyond criteria that the solution must satisfy and desires to improve the current setup, we also consider future scenarios. The baseline scenario comprises the current production and/or logistics footprint, expressed in service levels, costs, and other key figures, along with improvement opportunities. Through 'center-of-gravity' analyses, multiple simulations are developed. Subsequently, we create various infrastructural management options. These options are then compared in terms of costs, key figures, and qualitative advantages and disadvantages.

Supply Today has extensive experience with software provider Llamasoft, particularly with the Supply Chain Guru package. Using predefined parameters, the aforementioned simulations can be elaborated and optimized within this tool. The advantage of this package is its ease of parameter adjustment and its excellent graphical representation of the consequences.

Production and Warehouse Layout and Design

When designing a layout, Supply Today focuses on reducing movements within production sites and warehouses. For warehouses, we design not only the general layout but also specific areas such as receiving, storage, and shipping.

The greenfield design serves as the starting point for finding the optimal layout. In this layout, we disregard environmental influences, legal constraints, or limitations of the current building. The greenfield layout incorporates all functional requirements, seeking optimal placement of production equipment and logistics facilities, as well as the best routing of flows. This process involves extensive analyses and discussions with management. Not only must growth be considered, but also opportunities for innovation: consolidating or replacing certain production and logistics functions, such as higher capacity production equipment or replacing specific production processes, cross-docking instead of storage. Subsequently, any constraints are addressed, and alternatives closely aligned with the greenfield layout are developed. The layouts are elaborated either by the client or by our in-house architect. The layouts include the number of receiving and shipping docks, receiving areas, the surface area and shape of the storage space, type of warehouse storage, the surface area and shape of various production areas, finished goods storage, and the shipping area. Additionally, they detail driving and walking paths, buffer locations, support areas for maintenance, canteens, offices, and changing rooms. Parking spaces, packaging material storage, and access routes are also considered.

Within the warehouse, we advise on storage types, such as single/deep or flow-through racking, and the setup of picking locations.

Exploring Mechanization Options

Supply Today has insights into mechanization applications for all activities within the warehouse and for storage and movements within production sites. We are familiar with suppliers, prices, capacities, limitations, and the technological state of each logistics activity. Our expertise is utilized in two ways. When mechanization is outsourced to a system integrator, we oversee the process on behalf of the client. Alternatively, we investigate mechanization possibilities, develop business cases, make proposals, and select suppliers for various components of the logistics process

Time and Motion study

We conduct these studies to establish an optimal layout in a production or logistics facility. They are also integral in assessing the feasibility of different mechanization forms. We measure driving and walking distances, as well as speeds within a facility, and correlate them with current and future volumes. Volumes are expressed in load carriers (pallets, boxes, roll containers, etc.). Pick-up and set-down times are recorded. Comparing these measurements with our best practice data provides initial insights for new improvements, such as reducing picking distances or increasing driving speeds by separating replenishment and picking activities. We also use the study to develop new layouts. In production facilities, numerous movements occur: from receiving to the warehouse, supplying raw materials to production, moving semi-finished products between production equipment, and removing and storing finished goods. Often, internal routes have expanded organically over the years and are far from optimal. In a new facility or during expansion, significant improvements can be made. Enhancements can also be achieved by mechanizing movements in a warehouse or production hall, such as using conveyor technology or automated guided vehicles (AGVs or AMRs).

Warehouse Management System Selection

Many companies have traditionally managed warehouse operations within their custom-developed systems: a combination of ERP and Warehouse Management Systems. This is rapidly changing. ERP systems or their supporting hardware are due for replacement, prompting consideration of separate WMS packages, possibly hosted in the cloud (SaaS). Even where separate WMS systems are in place, these studies remain relevant. New functionalities enhance management transparency and operational efficiency. Mechanization also demands more advanced WMS packages. Supply Today is intimately familiar with WMS packages and has extensive experience in design, implementation, and required investments. We identify benefits, develop business cases, define requirements, and prepare the tender process. We are acquainted with both packages offering limited functionality and the most advanced warehouse management systems, ensuring the right suppliers make the shortlist

Supply Chain Studies

In these studies, we examine supply chain management. Central questions involve improving product availability, delivery reliability, inventory reduction, and flow integration.

Principles for Supply Chain Improvements

The possibilities and types of measures to be implemented depend on four key supply chain factors that we first aim to fully understand: position, power, product, and push/pull.

Position refers to the role that the company's activities—or a part of them—play within the supply chain. This could range from raw material supplier, producer of auxiliary or finished goods, wholesaler, retailer, or after-sales service provider.

Power pertains to the influence the company can exert: whose will dominates, and which links in the chain are subject to this influence?

Product examines the logistical characteristics of the product, such as shelf life, speed of delivery, and packaging unit.

Push/pull relates to the strategy chosen to deliver the product to the customer.

Together with management, we identify which of these factors can be influenced. Are we designing or optimizing based on the status quo, or are we exploring opportunities to expand the current parameters?

Framework for Design and Improvements

Our framework serves as a structured guide for both designing and improving supply chains. It integrates the following key elements:

Forecast Horizon and Frequency
Defining the appropriate timeframes and update intervals for forecasts and planning.

Competencies
Assessing the skills and knowledge available within the organization and identifying those required to meet current and future goals.

Decision-Making and Escalation Model
Establishing clear guidelines for how decisions are made and escalated, ensuring efficiency and accountability.

Roles and Responsibilities
Clarifying the roles and responsibilities of all stakeholders involved to avoid overlaps and ensure smooth operations.

Processes and KPIs
Defining and optimizing core processes, alongside selecting and tracking the most impactful Key Performance Indicators.

This framework is not just theoretical but grounded in Supply Today's extensive hands-on experience. It allows us to deliver practical and effective recommendations tailored to our clients' unique situations.