A Blueprint for Supply Chain Optimization Presentation

Designing the Ideal Distribution/Fulfillment Network
Success in the omnichannel retail market requires leading practices and integration of multiple layers of organizational capabilities.

The achievement of a client’s distribution / fulfillment network objectives requires the effective integration of people, organization, business processes, and technologies.

Value Proposition – “Sizing the Prize”
Typical savings from a supply chain optimization project range between 10% to 20% of logistics costs. On occasion, savings can be much greater. A recent project provided more than 48% savings. Savings depend on the improvement opportunities inherent in the existing network.

Success Is Not Simple

• Good supply chain network plans rely on a defined set of requirements.
• It should not be composed simply of ideas, thoughts, or possibilities that have not been researched and validated.
• Possible requirements should be defined, analyzed, and evaluated and they should result in the development of a specific set of strategic requirements.
• The normal planning horizon is 5 years.
• It should be action-oriented and time-phased.
• When possible, the plan should set forth very specific actions needed to meet requirements.
• The distribution network plan is based on a set of premises concerning future sales volumes, inventory levels, transportation costs, and warehouse costs.
• Get support for the plan. Top to bottom agreement is critical.
• The result should illustrate which strategy is best for the company as it maximizes profits to the stakeholders.
• Most importantly, did you answer the question the senior leadership team requested and are you prepared for this to become a process, not a project?